New construction in Germany fell sharply in the first half of the year, the latest sign of stress in the property market in Europe’s largest economy. Data from property consultancy and analytics firm Bulwiengesa said housing starts fell 47% in the first half of the year compared with the average for the past two years. The volume of housing under construction decreased by 1.6% in the first 6 months. The decline in large cities is even sharper. Housing and hotel construction in metropolitan areas fell 6.7% and 12.1%, respectively.
The real estate sector is expected to ask the government for multibillion-dollar support at a planned meeting with the German chancellor in October.