In 2025, Germany saw a notable increase in building permits after a decline that lasted three consecutive years. The country issued almost 240,000 building permits, a significant rise from the previous year's total of approximately 215,000 permits, which marked the lowest level since 2010. The decline in earlier years was attributed to rising interest rates and increased material costs, impacting the construction sector and potential homeowners alike.

The rise in permits was particularly pronounced for new single-family homes, with about 45,000 permits granted—an increase of 6,500 compared to the previous year. However, there was a slight decrease in permits for new two-family homes, which totaled 12,600. Despite this drop, the permits for both single-family and two-family homes constituted nearly 30 percent of all newly constructed residential units, highlighting the ongoing demand for this type of housing in the German market.

The data reflects differing trends in housing development, as single-family and two-family homes are primarily built by private individuals, while businesses tend to focus on multi-family units, which make up about two-thirds of the total number of approved new residential units. This shift in permit grants indicates an evolving landscape in the housing market, influenced by economic factors and the growing preferences of German residents.