Growth and stability in construction
Germany’s booming construction industry benefits from a stable economy and investment climate and a progressive focus on energy efficiency that is supported by the market and by the federal government.
The construction market is booming in Germany.Annual investment in construction has been growing steadily since 2015.
Germany’s construction sector is just as strong as the robust HVAC (heating, ventilation, and air conditioning) industry. 2017 in particular was a great year for the HVAC sector, with over 700,000 heating systems sold, which represents an increase of 3 percent in comparison to 2016.
Green and smart solutions
The German energy agency Dena and the German Real Estate Association (GdW) launched a project in September 2018 called "Energiesprong", for which they are seeking innovative construction companies to assist in retrofitting prototype buildings becoming climate neutral in the next two years.
Germany offers investors a combination of momentum in the movement toward new energy-efficient construction and a vast stock of older buildings and heating systems that require updating.
Climate-neutralReaching Germany’s goal of climate neutrality would mean reducing primary energy demand in buildings by 80 percent, based on 2008 levels.
ModernisationMore than 13 million heating systems installed in Germany are considered inefficient.
A need to update63 percent of Germany’s building stock was constructed before 1979.
Ambitious goalsThe government aims to have an entirely climate-neutral building stock by 2050.
The German market for smart home systems is growingExpected growth of Networking and Control Systems (NCS) in households:
Solid support for R&D
According to the World Economic Forum’s 2018 Global Competitiveness Report, Germany ranks third in the world on its Global Competitiveness Index. The WEF also classes Germany as a "super innovator" that spends 2.9 percent of GDP on R&D.
Efficiency and technology unite
Building Information ModelingThe Federal Ministry of Transport and Digital Infrastructure (BMVI) has developed a Road Map for Digital Design and Construction, aiming for Building Information Modeling (BIM) to be the standard planning tool for federal infrastructure projects by 2020.
Increasing use of BIMOne third of companies with projects worth more than EUR 25 million already use BIM.
Diverse collaboration16 BIM clusters, including architects, companies and scientists, are collaborating to increase the frequency of BIM implementation.
Opportunities for companiesThere are opportunities for international companies who can offer BIM software that is accessible to smaller companies.
The German building market is moving towards energy efficiency. With the integration of research, funding and regulation, German households have reduced their energy usage for heating by around 20 percent. 60 percent of nearly 110,000 residential buildings constructed in 2016 have a renewables-based heating system.
Innovation in building technology and support for research combine in the German building industry with incentives for developing green energy solutions. This is an investment landscape that rewards progressive approaches amid a healthy economy.