Housing approvals up by 11.7% in Germany since start of year

The residential construction sector in Germany saw more positive news, with the number of approvals for new housing units from January to September 11.7 percent higher than in the same period last year.

New flats are a key part of Germany’s solution to a housing shortage in urban centres, which is driving up prices and straining the rental market.

The data from the Federal Statistical Office showed there was a particularly high increase of 17.4 percent in approvals for new single-family homes.

Some 142,600 of the 175,600 newly approved housing units were in new residential buildings.

The remainder were approvals for extensions of existing residential buildings, or units within commercial buildings or care homes.

In September 2025 alone, the authorities approved 24,400 flats. That was 59.8% more than a year earlier.

The strong figures are partly the result of a low baseline: September 2024 saw the lowest monthly approvals since January 2012.

High interest rates and construction costs have put the brakes on residential construction in recent years. Last year, 251,900 housing units were completed in Germany, the lowest number since 2015.

Budget committee to fine-tune Germany’s 2026 budget

The budget committee of the lower house of the German parliament, or Bundestag, plans to put the finishing touches to the budget for the coming year at a meeting in Berlin.

In what is known as an adjustment session of the German parliament, lawmakers usually make a few changes to the federal government’s draft, and in some cases decide to postpone millions in spending. The session therefore often lasts late into the night or even until the next morning. Ministers also have to speak.

The Bundestag is then expected to finally vote on the budget in the session week from November 25 to 28.

The issue is how much money the individual ministries will be authorized to spend in 2026 and which projects will be financed.

Finance Minister Lars Klingbeil has earmarked spending of €520.5 billion ($603.3 billion) in his first draft. Around a third of it will come from loans. There are also special funds for infrastructure and the armed forces, or Bundeswehr.