Decline in Housing Approvals Continues in Capital Region

In the capital region, the trend of decreasing housing approvals persists for the eighth consecutive year. Recent statistics indicate a significant decline in the number of authorized housing units in both Berlin and Brandenburg.

According to the Berlin-Brandenburg Statistical Office, the total number of approved housing units in Berlin plummeted from approximately 15,900 to 9,800 in the last year, representing a staggering drop of 38.5%. This marks the eighth consecutive year of decreasing approvals, and the seventh year of decline in new construction.

Out of the 9,800 approved units, 8,600 were designated for new construction, which reflects a 40.6% decrease in new housing projects. The remaining units are being created through modifications of existing structures, such as converting attics into living spaces. Certain districts, including Neukölln, Steglitz-Zehlendorf, and Friedrichshain-Kreuzberg, reported the fewest approvals, while Spandau and Charlottenburg-Wilmersdorf led in the number of permits granted.

In Brandenburg, the decrease in housing approvals has continued for the third consecutive year. The total number of approved units fell by 19.5% to nearly 9,100 in 2024, with around 7,200 of those being new constructions, which is a decline of 25.4% compared to the previous year.

The Barnim district has emerged as a notable area for housing development, reporting over 1,500 approved units, which not only signifies the highest number of permits in the region but also the largest percentage increase from the previous year. Potsdam, with nearly 800 approved units, stands out as the leading city among the independent municipalities.

This ongoing decline in housing approvals raises concerns about the future of residential development in the capital area, particularly as the demand for affordable housing continues to rise amidst a backdrop of population growth.