European housing construction is projected to see steady growth over the next few years, with completed apartments expected to rise from 1.44 million units in 2025 to 1.47 million in 2026, reaching 1.66 million by 2028. This expansion is driven largely by major markets such as the UK, France, and Spain, as well as smaller countries like Ireland and Sweden, reflecting a broad-based recovery across the continent. Despite this overall positive trajectory, Germany's housing market is lagging behind. Completions there are forecast to decline to 185,000 units in 2026, only recovering gradually to 215,000 by 2028, which remains 15% below the 2024 level.
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Ifo Institute construction expert Ludwig Dorffmeister attributes Germany's slower growth to persistent mismatches between project costs and consumer willingness to pay, as well as the limited impact of initiatives aimed at reducing construction costs and accelerating procedures. While other European markets benefit from stronger growth, Germany continues to face structural challenges that constrain its housing output.
The disparity highlights broader trends across Europe: countries such as the UK are expected to increase completions from 161,000 to 207,000 units, France from 272,000 to 314,000, and Spain from 95,000 to 135,000 by 2028. Smaller nations are seeing even more dynamic growth. Despite these increases, Dorffmeister cautions that strained housing markets may limit the benefits of rising construction volumes. Overall, Europe's housing sector is on an upward path, yet Germany's moderate recovery underscores the ongoing challenges in aligning supply, demand, and cost efficiency.
Source: www.moebelmarkt.de
