Finance
Germany's construction sector expects infrastructure fund to fuel turnaround
Published by Global Banking and Finance Review
Posted on December 11, 2025
2 min readLast updated: January 20, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on December 11, 2025
2 min readLast updated: January 20, 2026
Germany's construction sector anticipates growth due to a 500-billion-euro infrastructure fund, reversing years of decline.
By Christian Kraemer and Maria Martinez
BERLIN, Dec 11 (Reuters) - Germany's construction sector, mired in crisis for years, is on the verge of a revival, the country's main construction trade body said on Thursday, as the government pumps hundreds of billions of euros into a massive infrastructure renewal plan.
The Central Association of the German Construction Industry (ZDB) forecasts a slight real increase in sector turnover of 0.6% this year, reversing three years of decline, followed by a 2.5% surge in 2026.
Revenues are forecast to reach 168 billion euros ($196.61 billion) in 2025, up 3% in nominal terms from the previous year, and 178 billion euros in 2026.
INFRASTRUCTURE FUND TO BOOST CONSTRUCTION SECTOR
"The construction industry has passed the lowest point," ZDB president Wolfgang Schubert-Raab said, pointing to special funds from a 500‑billion‑euro package to modernise infrastructure as the main driver. "After years of declining figures, confidence is returning to the construction industry for the first time."
State investment will primarily fuel growth in civil engineering, the association said, though conditions are also improving in residential construction.
In a ZDB survey of 1,500 construction firms, 56% described their current business situation as good or satisfactory. Nearly 70% expect a stable or better situation in the coming months, compared with just over half a year earlier.
RESIDENTIAL SECTOR EXPECTED TO GROW FROM 2026
In residential building, the ZDB expects turnover of just under 54 billion euros in 2025, a real decline of 4% after inflation compared to the previous year. In 2026, however, revenues are due to rise to 56.3 billion euros, a real increase of 1.6%.
The association expects between 225,000 and 230,000 housing units to be completed in 2025, down from 252,000 in 2024, and falling further to between 215,000 and 220,000 units next year.
New building permits dropped 27% in 2023 and a further 17% in 2024.
"Due to the long lead times, we do not expect positive figures until 2027," ZDB said.
($1 = 0.8545 euros)
(Reporting by Christian Kraemer; Writing by Maria Martinez; Editing by Joe Bavier)
Residential construction involves the building of homes and apartments, including single-family houses, multi-family units, and other living spaces for individuals and families.
Civil engineering is a branch of engineering focused on the design, construction, and maintenance of the physical and naturally built environment, including infrastructure projects.
New building permits are official approvals granted by local authorities allowing construction or renovation of buildings, indicating future construction activity in a region.
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