Construction Industry in Saxony-Anhalt Experiences Growth Despite Decline in Housing Construction
Halle, Germany – The construction industry in the German state of Saxony-Anhalt recorded a modest increase in revenue in 2024, according to the latest figures from the Statistical Office for Saxony-Anhalt in Halle.
Revenue Growth
The industry generated a total revenue of 3.065 billion euros in 2024, representing a nominal increase of 79 million euros or 2.7% compared to the previous year. The revenue increase was primarily driven by strong performance in gewerbliche and industrieller Tiefbau (commercial and industrial civil engineering), which saw a significant rise of 98.4 million euros or 10.1%, and Straßenbau (road construction), which grew by 43.5 million euros or 7%.
Decline in Housing Construction
However, the overall growth was tempered by a decline in Hochbau (structural construction), particularly in the residential sector. Revenue from housing construction dropped by 81.4 million euros or 8.2% compared to 2023, equivalent to a decrease of 22.3%.
Order Intake
Order intake in the construction industry also showed positive signs in 2024, with a total volume of 2.963 billion euros. This represented a nominal increase of 296.2 million euros or 11.1% compared to the previous year. Notably, after a period of stagnation, the residential sector recorded an increase in orders, with a nominal gain of 20.8 million euros or 9%.
Outlook
The Statistical Office for Saxony-Anhalt attributes the revenue growth in the construction industry to the ongoing demand for infrastructure projects and the recovery in the residential sector. However, it remains to be seen whether the industry can sustain this growth in the face of rising material costs and labor shortages.
Analysis
The construction industry in Saxony-Anhalt is a key driver of the state’s economy, providing employment and contributing to infrastructure development. The recent revenue growth and increase in order intake are encouraging signs, but the decline in housing construction raises concerns about the availability of affordable housing in the state.
Conclusion
The construction industry in Saxony-Anhalt has demonstrated resilience and adaptability in the face of challenges. While the overall revenue growth in 2024 is positive, the industry must address the decline in housing construction to ensure a sustainable and equitable growth trajectory in the years to come.
