Berlin, Aug 2 (IANS) The number of completed dwellings residential units across Europe is set to decrease significantly, with 1.6 million units predicted by the end of 2024, an 8.5 per cent drop from the previous year, according to the IFO Institute for Economic Research.
Germany is expected to experience an even sharper decline, with a 15 per cent reduction in completed housing units, IFO on Thursday cited the EUROCONSTRUCT forecasting network as saying.
“European residential construction is being hit hard by higher interest rates and reduced purchasing power,” Ludwig Dorffmeister, a construction expert at IFO explained. “In Germany, the situation is exacerbated by significantly inflated construction costs.”
The downturn in residential construction is more pronounced in the Nordic countries. Finland and Sweden are projected to see their number of complete housing units roughly halved this year. Norway fares somewhat better, with an expected decline of 22 per cent.
In contrast, some positive trends have been observed in other parts of Europe. Poland is anticipated to see a four per cent increase in housing completions, Ireland 10 per cent, and Spain 15 per cent, Xinhua news agency reported.
“In Spain, while construction activity will remain at a low level, more than 100,000 housing units could be completed in 2025 for the first time since 2012,” Dorffmeister added.
In 2024, new construction is expected to play a less prominent role in the residential sector, with its share dropping to 37 percent, down from 58 percent in 2006. “The focus is increasingly shifting towards maintaining and modernizing existing living spaces,” Dorffmeister noted.
Despite these challenges, experts predict stable demand in the civil engineering sector. “Expanding and enhancing the quality of infrastructure remains a continuous priority in all countries,” Dorffmeister said.
He emphasised that the necessary funding for these projects will come from relatively stable sources, including multi-year national investment funds and EU financing.
–IANS
as/
Disclaimer
The information contained in this website is for general information purposes only. The information is provided by TodayIndia.news and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.
Through this website you are able to link to other websites which are not under the control of TodayIndia.news We have no control over the nature, content and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, TodayIndia.news takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
For any legal details or query please visit original source link given with news or click on Go to Source.
Our translation service aims to offer the most accurate translation possible and we rarely experience any issues with news post. However, as the translation is carried out by third part tool there is a possibility for error to cause the occasional inaccuracy. We therefore require you to accept this disclaimer before confirming any translation news with us.
If you are not willing to accept this disclaimer then we recommend reading news post in its original language.
