Germany Residential Construction Market Size Forecast to Reach USD 307.21 Billion by 2031, Reports Mordor Intelligence

Germany Residential Construction Market Overview 

According to insights from Mordor Intelligence, the Germany residential construction market size growing from USD 240.70 billion in 2025 to USD 250.69 billion in 2026 and projected to reach USD 307.21 billion by 2031. Growth is largely supported by strong renovation activity, as building owners upgrade existing housing stock to comply with energy efficiency requirements. Modular construction methods are also gaining wider acceptance as developers seek more efficient ways to address workforce constraints and manage costs. At the same time, long-term demand remains supported by sustained housing shortages and increased investment commitments from large residential developers, reinforcing confidence in the market’s medium- to long-term outlook. 

Germany Residential Construction Market Segmentation Analysis 

By Type 

• Apartments & Condominiums 
• Villas and Landed Houses 

By Construction Type 

• New Construction 
• Renovation 

By Construction Method 

• Conventional On-Site 
• Modern Methods of Construction (Prefabricated, Modular, etc) 

By Investment Source 

• Public 
• Private 

By City 

• Berlin 
• Munich 
• Frankfurt 
• Hamburg 
• Rest of Germany 

Read the full report in the Japanese version for localized insights: https://www.mordorintelligence.com/industry-reports/germany-residential-construction-market?utm_source=Industrytoday.co.uk 

Germany Residential Construction Market Growth Drivers 

Growing Impact of Modular Construction 

Off-site modular construction is becoming an important contributor to the Germany Residential Construction Market Share, as factory-built modules help shorten construction timelines and address labor shortages. Standardized designs improve cost efficiency and provide some protection against material price fluctuations. Wider adoption depends on harmonized building codes and financing standards, but public housing projects increasingly favor modular solutions, supporting steady growth in this segment. 

Renovation Driving Housing Activity 

The aging housing stock in Germany is fueling strong renovation demand, as many dwellings now face stricter EU energy-performance requirements. This has shifted much of the construction focus toward upgrades, including insulation, heat-pump installation, and smart-meter retrofits, making renovation a key driver of the Germany residential construction market trends. Renovated units also attract higher rents, particularly in major cities where land for new construction is limited, reinforcing the role of refurbishment in overall market growth and value. 

Growing Interest in Green Real Estate Financing 

ESG-focused real estate funds are increasingly directing capital toward environmentally efficient projects. Recent green mortgage programs have seen strong demand, with investors showing particular interest in energy-efficient properties. Preferential financing is creating a clear distinction between high-performance projects and less efficient ones, motivating developers to incorporate energy-saving features in new construction and undertake comprehensive retrofits in existing buildings. 

Germany Residential Construction Market Key Players 

• HOCHTIEF AG 
• Ed. Züblin AG 
• GOLDBECK GmbH 
• Max Bögl Group 
• Deutsche Wohnen SE 

Future Outlook 

The Germany residential construction market is expected to maintain steady growth in the coming years, driven by continued demand for housing, energy-efficient renovations, and the gradual adoption of modular construction methods. Urban areas will remain the focus for new development, while refurbishment of older housing stock will support both market volume and value. Increasing attention to sustainability and ESG-linked investment is likely to shape project design and financing, reinforcing long-term market stability and encouraging innovation in construction practices. 

Explore detailed insights on the Germany Residential Construction Market: https://www.mordorintelligence.com/industry-reports/germany-residential-construction-market?utm_source=Industrytoday.co.uk 

Industry Related Reports: 

Europe Residential Construction Market: https://www.mordorintelligence.com/industry-reports/europe-residential-construction-market?utm_source=Industrytoday.co.uk 

Canada Residential Construction Market Size: https://www.mordorintelligence.com/industry-reports/canada-residential-construction-market?utm_source=Industrytoday.co.uk 

US Residential Construction Market Analysis: https://www.mordorintelligence.com/industry-reports/us-residential-construction-market?utm_source=Industrytoday.co.uk 

About Mordor Intelligence: 

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With a team of over 550 domain experts and on-ground specialists spanning 150+ countries, Mordor Intelligence possesses a unique understanding of the global business landscape. This expertise translates into comprehensive syndicated and custom research reports covering a wide spectrum of industries, including aerospace & defense, agriculture, animal nutrition and wellness, automation, automotive, chemicals & materials, consumer goods & services, electronics, energy & power, financial services, food & beverages, healthcare, hospitality & tourism, information & communications technology, investment opportunities, and logistics. 

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