Construction site in Duesseldorf, Germany Construction site in Duesseldorf, Germany | © Getty Images/Westend61

Building Industry Landscape

Germany is Europe’s leading construction market and home to the continent’s largest building stock. A number of drivers have led to a boom in German construction investment and this is largely expected to continue in the foreseeable future.

As part of its ongoing transition to a sustainable energy system, Germany aims to have an almost climate-neutral building stock by 2050. Three quarters of buildings in Germany were built before 1980, making the renovation of existing stock key to meeting energy efficiency targets. With buoyant demand and tight building codes, Germany offers providers of energy efficient building products and services a highly dynamic market.

Latest Publication

Fact Sheet: Construction and Green Building in Germany Fact Sheet: Construction and Green Building in Germany | © GTAI

Fact Sheet - Construction and Green Building in Germany

Germany is Europe's leading construction market and home to the continent's largest building stock. More [pdf]

Latest GTAI building industry news from Germany

March 2020: Germany Boosts Incentives for Energy Efficiency in Buildings
October 2019: German Politicians call for Center of Excellence for Digitization of the Construction Sector
May 2019: Federal Ministries Consult Each Other on Building Energy Act
July 2018: Innovative Construction Companies Wanted For Serial Retrofits
June 2018: German Construction Industry Association Raises Growth Expectations
June 2018: Year starts with strong growth in construction investment
January 2018: New funding program for drain water heat recovery systems (DWHR)
October 2017: Energy efficient construction and renovation funding jumps 15 percent
October 2017: Germany’s “first Power-to-Heat / Power-to-Cool system” enters service
August 2017: Super-efficient housing estate celebrates completion in Bavaria
August 2017: 60 percent of residential buildings completed in Germany in 2016 wholly or partly heated by renewable energy
August 2017: Updated climate data for energy-optimized construction
June 2017: New funding strategy for energy efficiency and renewable heating published
June 2017: One third of new residential buildings in Germany included a heat pump in 2016
May 2017: Germany’s window and door branch expects solid growth in 2017
May 2017: New building energy efficiency law put on ice
April 2017: Growing demand for energy-efficient construction funding
April 2017: New construction orders in Germany hit 20-year high
March 2017: Record KfW energy efficiency funding in 2016
March 2017: 2016 a bumper year for construction permits in Germany

Germany’s thriving construction market

The construction sector is booming in Germany. Population growth, demographic changes, and a favorable economic environment are driving high demand for residential buildings. There are also interesting niches, such as multigenerational houses, micro-apartments, and prefabricated buildings. Green building technologies - from the architect’s office to building materials and components - will be paramount in achieving the country’s climate protection targets. There is no better time to approach Germany’s growing and green construction market!

Under constructio: Strong growth in residential builds to continue in the mid-term
Under constructio: Strong growth in residential builds to continue in the mid-term | © ¹2010-2012: DIW Berlin, DIW Wochenbericht Nr. 1+2/2017, January 2017; 2013-2018: DIW Berlin, Strukturdaten zur Produktion und Beschäftigung im Baugewerbe, July 2017 / ²Federal Statistical Office, 2017 / *Prognosis

Digitizing the construction industry: Building Information Modeling (BIM)

Whether it is tracking systems for construction machinery, digital construction files, or drones flying above a building site to control the construction status – digitization has arrived in the German construction industry. The Federal Ministry of Transport and Digital Infrastructure (BMVI) has developed a “Road Map for Digital Design and Construction”, which promotes the development and utilization of Building Information Modeling (BIM) as a standard planning tool for all federal infrastructure projects as of 2020. The goal is to clarify legal and technical requirements and develop standards for BIM.

The technology promises an integrated planning process, efficient and sustainable use of resources in buildings, and the immediate transfer of information between all stakeholders in the planning and construction process. However, a study by the Fraunhofer Institute for Industrial Engineering found that 41% of the construction firms and planners surveyed had never used BIM. To change this, architects, engineers, construction companies, scientists, and other stakeholders are collaborating and exchanging knowledge in 16 BIM clusters (as of May 2017) across Germany. Innovative foreign companies are invited to join the process of turning integrated digital planning and construction from a vision of the future into a standard in construction.

Road Map for Digital Design and Construction
Road Map for Digital Design and Construction | © Federal Ministry of Transport and Digital Infrastructure 2016
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