The construction industry in Germany is expected to have declined in real terms by 3% in 2025, owing to falling building permits and rising construction material costs. According to Destatis, the total number of non-residential building permits approved fell by 3.6% year-on-year (YoY) in the first nine months of 2025, following an overall annual fall of 5.8% in 2024. Similarly, the construction production index declined by 2.7% YoY in the first nine months of 2025, following an overall annual fall of 3.4% in 2024, according to the Eurostat.
The German construction industry is expected to recover at an average annual growth rate of 3.1% between 2026 to 2029, supported by investments in manufacturing, and road construction projects. Earlier, in March 2025, the German Parliament approved a EUR500 billion ($544.8 billion) debt package to fund infrastructure and climate initiatives through 12-year loans. The plan allocates EUR300 billion ($327 billion) for infrastructure projects, EUR100 billion ($109 billion) for federal states, and another EUR100 billion ($109 billion) for climate-related projects. Germany’s growth outlook is further strengthened by ongoing investments in renewable energy, in line with the government’s target to generate 80% of electricity from renewables by 2030 and achieve carbon neutrality by 2045.
The German construction industry is expected to recover at an average annual growth rate of 3.1% between 2026 to 2029, supported by investments in manufacturing, and road construction projects. Earlier, in March 2025, the German Parliament approved a EUR500 billion ($544.8 billion) debt package to fund infrastructure and climate initiatives through 12-year loans. The plan allocates EUR300 billion ($327 billion) for infrastructure projects, EUR100 billion ($109 billion) for federal states, and another EUR100 billion ($109 billion) for climate-related projects. Germany’s growth outlook is further strengthened by ongoing investments in renewable energy, in line with the government’s target to generate 80% of electricity from renewables by 2030 and achieve carbon neutrality by 2045.
The Construction in Germany - Key Trends and Opportunities to 2029 (Q4 2025) report provides detailed market analysis, information, and insights into the German construction industry, including:
- The German construction industry's growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the German construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
Report Scope
This report provides a comprehensive analysis of the construction industry in Germany. It provides:
- Historical (2020-2024) and forecast (2025-2029) valuations of the construction industry in Germany, featuring details of key growth drivers.
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
- Listings of major projects, in addition to details of leading contractors and consultants
Reasons to Buy
- Identify and evaluate market opportunities using our standardized valuation and forecasting methodologies
- Assess market growth potential at a micro-level with over 600 time-series data forecasts
- Understand the latest industry and market trends
- Formulate and validate business strategies using the analyst's critical and actionable insight
- Assess business risks, including cost, regulatory and competitive pressures
- Evaluate competitive risk and success factors
Table of Contents
1 Executive Summary2 Construction Industry: At-a-Glance6 Construction Market Data
3 Context
4 Construction Outlook
5 Key Industry Participants
7 Appendix
List of Tables
List of Figures
