BERLIN, March 15 (Xinhua) -- The number of building permits issued in Germany has declined for the first time in 10 years, an official study published on Thursday by the Federal Statistical Office finds.
According to the study, the annual nation-wide number of building permits fell by 7.3 percent to 348,100 in 2017.
The Wiesbaden-based government statisticians noted that the "numbers had risen continuously from 2008 until 2016" , and attributed the trend reversal to lower demand for refugee housing projects in particular.
Building permits for single family homes and duplex houses fell by 5.0 percent and 2.7 percent respectively last year, while the number of permits for larger apartment buildings was "virtually unchanged." In the category of "hostels" which includes refugee accommodation, the number of permits collapsed by 41 percent.
The Federal Association of the German Construction Industry estimates that around 320,000 newly-built apartments in total will be completed in 2017. Although this figure marks a doubling compared to 2010, it still falls short of anticipated demand by 30,000 apartments.
The state-owned kfW banking group has further highlighted an overhang of 600,000 building permits in Germany which have yet to result in any actual construction.
The kfW pointed to a lack of capacity in the construction sector as one explanation for the phenomenon, but also warned that many investors in large cities were increasingly hoarding building permits to "speculate on rising rental costs and real estate prices."
