The German can-do attitude has been displayed once again in its building programme, with the number of permits to build new dwellings hitting a ten-year high.
Germany’s housing market is booming, fuelled by demand and lower mortgage interest rates. Pressure is greatest for, but not confined to, new flats.
In January alone, new permit numbers shot up by nearly 35% at the same time as 21,600 new apartments were completed, an increase of 31% over the previous year.
Additionally, building renovations on existing buildings contributed another 4,500 new flats.
The demand for single family homes was assisted by a 33% rise in the number constructed and multiple-family residences saw a 28% increase.
The country has been in the grip of a housing shortage, particularly in its large cities, where ever-larger numbers of students, immigrants and "young pensioners" are opting for an urban life over peace and quiet in the countryside or smaller towns
Berlin alone will need 20,000 new homes every year from now until 2020 to keep up with demand, according to the Institute for the German Economy (IW). Some 100,000 people have moved to the capital in the past three years.
At the same time, less-populated rural areas, such as the Black Forest and large parts of former East Germany have seen too many new homes built.
That's a symptom of local governments in rural areas trying to stimulate business and attract more people by selling off cut-price land for construction, the IW economists said.
The German Central Bank (Bundesbank) warned that some German cities are experiencing price inflation in housing and that lenders should exercise caution.
With an estimated 81 million people, Germany is the most populous country in the European Union and ranks as the 16th largest country in the world in terms of population.
