New building starts were down 47% in the first six months, compared with the average of the past two years, with an even steeper 54% fall in home building, according to Bulwiengesa, a property consultant and analysis firm.
"There's strong caution in project development," said Sven Carstensen, chief executive of Bulwiengesa. The nation's property industry will ask the government for multi-billion euro support at a meeting with Chancellor Olaf Scholz in September,"The situation is dramatic," said Jan-Marco Luczak, a parliamentarian who has pushed for a property tax cut demanded by industry. "I hear from more and more property developers that they are already laying off staff."
Marcus Gwechenberger, a member of Frankfurt's city council who oversees urban planning, said some building had been delayed because developers hoped costs would go down.