Growing home building demand to stimulate construction volume in the coming years

According to the recent Ifo Construction Forecast, due to an increasing demand for new dwellings, construction activity will increase moderately in Germany from 2011 to 2020. In 2020 construction volume should amount to 254 billion euros (2010: 244 bn euros) in prices of the year 2000. For the coming decade an average annual growth of nearly 0.5 percent will be the result. Residential construction will have a particularly stimulating effect on construction activity, which in the coming ten years will increase, on average, by about 1 percent p.a. Commercial construction spending should remain high but will not increase considerably.