Dear readers,
The situation in residential construction is serious: rising construction costs, persistently high interest rates, the back-and-forth in subsidy policy and a maze of regulatory requirements have caused the number of building permits to plummet to a record low. Quite a few people who want to build are putting it off out of necessity. This crisis not only threatens the entire housing construction industry, but also social peace in Germany.
Nevertheless, there is hope: There could be a new political dynamic after the general election. All relevant parties have highlighted housing construction and energy policy as priority issues in their election manifestos and have made extensive proposals in some cases. That might give rise to cosiderable changes. One of the most urgent tasks of the new government will be to take decisive and appropriate measures to sustainably improve the general conditions for housing construction, property ownership and a reliable and affordable energy supply.
There are also positive signals at European level. The newly formed EU Commission following the European elections has taken up its work with the aim of strengthening European industry. This offers opportunities for the brick and tile industry, particularly with regard to the transformation to climate-neutral production.
As turbulent as these times may be, they might develop some momentum. We know: It won’t work without bricks. It combines durability and quality with innovative approaches to sustainable and energy-efficient construction. And above all, it is regional and affordable. And not all building materials can make that claim. After all, a third of all new residential buildings in Germany today are built with brick - proof of its continuing importance.
In 2025, we will be particularly committed to promoting affordable housing, speeding up approval procedures and making energy prices competitive and predictable. And we will inform the new decision-makers about the benefits of our natural product brick and bring them into contact with it on site at the production facilities.
I wish you a successful start to an exciting year!
Yours,
Attila Gerhäuser
Chief Executive Officer of the Federal Association of the German Brick and Tile Industry e. V.
