European Economy. Economic Papers. Germany's growth performance in the 1990's

B2.2 Residential construction
Residential building accounts for almost 60% of total construction investment. As shown by
Table B2.2, activities in residential construction were mainly supported by a strong demand
for owner occupied houses, with the number of newly built owner occupied houses in 2000
clearly higher than in 1994. The construction of rental apartments on the other hand went
down from 284,309 in 1994 to 136,445 in 2000. Given the overall importance of this sector, it
appears that this decline is the most important factor in explaining the very specific
developments of the construction sector in Germany since re-unification.
14
Cf. Statistisches Bundesamt, Fachserie 18, Reihe 1.3 Hauptbericht 1999, S. 110 ; Fachserie 18, Reihe 1.2
Vorbericht 2001, S. 113

---

31
Box 2 (continued)
This development is partially due to the introduction of the very generous special depreciation
for rental construction in the New Länder and its subsequent drastic reduction. The number of
completed apartment buildings actually declined from a peak of 99,201 in 1997 to 21,042 in
the year 2000, with available indicators showing another deceleration in 2001.
Table B2.2: Completed Dwelling in Germany, 1994-2000
In bn. €
1994
1995
1996
1997
1998
1999
2000
Germany
One- or two
family
houses
212,354
205,165
188,802
211,056
220,611
237,331
229,715
Apartment
houses
284,309
312,481
292,173
285,586
208,400
167,314
136,445
Others
76,220
85,111
78,513
81,537
71,679
67,993
56,884
Total
572,883
602,757
559,488
578,179
500,690
472,638
423,044