There is a lot of discussion around how politics is impacting the property and construction market across Germany. We have seen the long term impact following Covid, conflict and war, lack of materials, climate change and economic shifts to name a few challenges. However, amongst the doom and gloom, there are a lot of positives worth highlighting.
Despite office-take up still falling short of pre-covid levels, high completion levels in the office sector have grown significantly. According to Cushman & Wakefield, newly completed office space is expected to be 50% by year end – 20% higher than 2019.
JLL released a positive quarterly review in regards to investment at the end of September. Almost $17 billion changed hands in the third quarter – an increase from Q2 – so even though there is talk of ‘cooling’, the investment market is not as bad as a lot of the headlines may appear.
The construction industry is expected to finish this year on a high, regaining growth at a predicted 1.9% expansion, according to World Cement. This has been largely driven by transport infrastructure investment projects as the government continues to focus on improving regional connectivity.
The Federal Government wants to make Germany’s built environment (basically) climate-neutral by 2050. The government’s commitment to this, and promise to increase the share of renewable energy in terms of the total energy mix, will boost investment in renewable energy infrastructure.
Going into the new year, Global Data is forecasting positive growth momentum until at least 2026 for the commercial construction sector. This will be supported by a gradual rebound in tourism, investments in office, retail and data centre projects.
We at Staffgroup have seen nothing but confidence from our clients in the property and construction sector. Recruitment is high, demand for talent is high and the volume of activity is moving at pace. Click here to see the latest roles we are working on, or for a more detailed conversation, get in touch for a conversation with one of our property and construction specialists!