Measures on existing buildings characterise medium- and long-term demand in Germany

After a decade of strong declines in demand, the German construction industry recorded a clear plus in 2006. Also 2007 was a good year, but the main contributor was commercial construction. In residential construction, demand weakened again somewhat in 2007. Growth impulses continued to come, however, from extensive renovation and modernisation measures. In the medium and long term, the high growth rates of the last two years will by far not be matched. Nevertheless, the future development will display an upward - albeit moderate - trend. This is the result of Ifo's latest construction survey for Germany. Whereas the long-term forecast has been made separately for western and eastern Germany for the next ten years, the medium term estimates have been made on the basis of six major German regions. According to the forecast calculations, construction demand will increase in the next ten years by 0.7% p.a., on average. Residential construction will show stronger growth than the other two construction sectors because of the volume of renovation and modernisation measures.