The downturn in Germany's residential construction sector worsened in July, with a record number of companies reporting dwindling orders, as higher interest rates and rising construction costs hamper new business.
China's economic slump is worsening due to the prolonged property crisis, with missed payments on investment products by a major trust company and a fall in home prices adding to concerns.
China's housing crisis continues as thousands of building projects are halted or slowed, leading to defaults and restructuring, a loss of confidence in the market, and a decline in sales.
German housing prices experienced the largest decline since records began in the second quarter of 2023, due to high interest rates and rising materials costs, creating a crisis in the construction industry.
The property market in Germany is in crisis as rising interest rates and raw material costs lead to a spike in bankruptcies among developers, causing construction projects to halt and leaving homeowners-to-be in financial distress. Chancellor Olaf Scholz is calling for talks with industry leaders to find solutions to jump-start construction and alleviate the growing housing shortage.
Germany's government has agreed on a 14-point plan to address the housing crisis, which includes putting stricter building insulation standards on hold and investing €18 billion in the sector by 2027. However, the plan has faced criticism from the construction industry and environmental groups.
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