German construction industry records record increase in large orders

Industry benefits from major orders Construction industry records record increase in orders As of: October 23, 2026 • 1:53 p.m

It is a ray of hope in tense times: the German construction industry is reporting the largest increase in orders since records began. But the main reason is large orders. Nevertheless, the rental market remains tense.

The German construction industry received more new orders in August than ever since records began. Incoming orders in the construction industry increased by 23 percent compared to the previous month, seasonally and calendar adjusted. Several large orders were decisive, as the Federal Statistical Office announced.

There is also a clear increase in the three-month comparison, which is less prone to fluctuations. From June to August, incoming orders were 7.6 percent above the level of the previous three months.

“We finally see light on the horizon,” said the general manager of the construction industry association, Tim-Oliver Müller. At the same time, he emphasized: "It will certainly take some time for large projects in particular to reach the industry and thus sustainably in terms of sales."

Civil engineering in particular recorded higher order numbers in August. According to statisticians, orders rose by 31.6 percent compared to the previous month. Civil engineering includes road and rail construction as well as other infrastructure projects. In building construction, which includes residential and office buildings, order intake increased by 12.4 percent.

The development comes at a time when the industry is hoping for additional impetus from the federal government's special fund for infrastructure and climate neutrality. However, business associations criticize the fact that the funds made available have so far hardly reached the broader construction industry.

The smaller companies in the construction industry fear that they will come away empty-handed when it comes to major public sector contracts. The contracts would be awarded in lots so large that only a few large companies would be able to bid. Medium-sized companies still have capacity, said the general manager of the Central Association of the German Construction Industry, Felix Pakleppa. In building construction, the equipment is only used to 45 percent capacity.

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Sales in August rose by 10.1 percent to 10.9 billion euros compared to the same month last year, it said. Adjusted for prices, the increase was 4.9 percent. The number of employees in the construction industry increased by 1.5 percent to around 548,000. The information from the Federal Statistical Office refers to companies with at least 20 employees.

Despite the strong increase in orders, the industry is calling for further political measures to stimulate residential construction in particular. Pakleppa described housing construction subsidies as a comparatively inexpensive way to strengthen the economy. Promoting home ownership could also relieve strained rental markets and strengthen the local economy, he argued.

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Despite the record increase in construction orders, the situation on the housing market remains tense. According to a study by the German Economic Institute (IW), rents are rising while purchase prices for real estate are almost stagnating.

At the beginning of this year, according to the IW, it appeared that the dynamics of asking rents and purchase prices were aligning with an annual increase of three to four percent. “In the meantime, however, one has to assume that the purchase prices will tend to stagnate or fall, while the asking rents will rise even more strongly,” emphasized the researchers.

“The reason for this is the recent interest rate development.” It dampens the demand for properties to buy. According to the IW study, demand is shifting to the rental segment.

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This topic in the program: tagesschau.de | ARD stock exchange: Construction industry records record increase in orders | Oct 23, 2026 | 1:50 p.m