Key facts
- Germany's construction sector remains in a downturn, according to its main industry association.
- Geopolitical events have caused a surge in energy and raw material prices, impacting construction firms.
- Approximately 80% of companies reported increased costs for bitumen and plastics.
- The sector's revenue growth in 2025 was nominal and driven by price increases.
- The industry association is calling for policy changes to support the sector.
Germany's construction sector is still grappling with a downturn, with recent geopolitical events exacerbating price pressures on energy and raw materials, according to Marcus Nachbauer, chairman of the Bundesvereinigung Bauwirtschaft. He noted that bitumen, concrete, cement, plastics, diesel, and heating oil have become significantly more expensive in recent weeks, with around 80% of member companies reporting higher prices for bitumen and plastics.
Nachbauer stated that the sector's revenue in 2025 reached approximately €432 billion ($500 billion), a nominal increase of 0.8%, primarily driven by price effects rather than increased construction volumes. The association anticipates 2026 revenue to remain at the previous year's level, with higher prices continuing to offset weaker construction activity.
To help lift Germany out of economic stagnation, Nachbauer urged for faster planning and approval procedures, reliable housing subsidies, and increased infrastructure investment reaching municipalities, emphasizing that "Building is economic policy."