The leading association of the medium-sized real estate industry (BFW) is alarmed by the drop in building permits. Compared to the previous year, building permits in Saxony, Saxony-Anhalt and Thuringia fell by more than 28 percent in 2023, the association announced on Thursday. The slump in new residential construction is particularly dramatic. This is a dramatic situation given the increasing demand for affordable housing.
According to the BFW, the reasons for the decline in construction are rising construction costs and economic uncertainties. Many approved projects are also not even being realized because they are no longer economically viable.
While the decline in building permits in Saxony is still the lowest in comparison at around 24 percent, it has been the sharpest in Saxony-Anhalt at more than 36 percent. The state association referred to figures from the state statistical offices. According to its own information, the BFW is the leading association of the private medium-sized real estate industry with 180 members.
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