“â¢ According to Destatis, the countryâs gross fixed capital formation in construction grew by 5.2%, from EUR277.2 billion (US$367.5 billion) in 2013 to EUR291.8 billion (US$393.6 billion) in 2014. This was preceded by respective annual growth of 3.3% and 1.6% in 2012, and 2013. Moreover, the countryâs gross fixed capital formation in construction grew by 1.4% in JanuaryâJune 2015, compared to JanuaryâJune 2014, reaching EUR143.4 billion (US$196.0 billion).
â¢ To maintain and develop the countryâs mainline rail network, German Rail (DB) plans to spend EUR28.0 billion (US$37.8 billion) on rail infrastructure during 2015â2019. A contribution of EUR20.0 billion (US$27.0 billion) will be made by the federal government under the Performance and Financing Agreement 2 (LuFV2), and the remaining EUR8.0 billion (US$10.8 billion) will be contributed by DB.
â¢ According to Destatis, residential property prices increased during the first half of 2015, backed by growth in demand due to low unemployment, rising business confidence and low interest rates. The countryâs housing price index grew by 4.5%, from 112.6 in JanuaryâJune 2014 to 117.7 in JanuaryâJune 2015. During the same period, the price index for purchases of new dwellings grew by 6.0%, from 111.8 to 118.4, and the price index for purchases of existing dwellings grew by 4.3%, from 112.8 to 117.6.
â¢ Germany is facing a housing shortage in line with its growing urbanization and high levels of immigration. According to Destatis, net migration grew by 28.4%, from 428,607 in 2013 to 550,483 in 2014. This was preceded by annual growth of 16.2% and 32.1% in 2013 and 2012 respectively. Despite the construction of a large number of housing units, supply is relatively low compared to demand, providing opportunities for residential developers. According to the government estimate, about 350,000 apartments are needed every year to address the countryâs housing deficit, but only 245,000 apartments were constructed in 2014.
â¢ Infrastructure construction is expected to continue to expand over the forecast period, driven by investments in road and rail construction. To connect the fixed link across the Fehmarn belt, to cut travel times and improve transport services by 2021, the Ringsted-Fehmarn rail link project is being developed to connect Germany to Denmark. The project will provide a link between the Puttgarden on Fehmarn Island and RÃ¸dbyhavn on Lolland, and reduce travel time from four hours and 30 minutes to two hours.”