Berlin's construction sector posted gains in the first quarter of 2015. According to the statistics office, revenue at firms with 20 or more employees rose 8.8% to 434 million euros compared with the same quarter a year earlier.
Orders and employment
Order intake reached 454.8 million euros, up 6.2%. This secures workload for the coming months. Employment also rose: an average of 11,530 people per month worked in the construction sector, 3.2% more than a year before. Revenue per employee came to 37,644 euros for the quarter, an increase of 5.5%.
What the numbers say about the property market
The construction industry is responding to high demand for residential and commercial space in Berlin. Migration to the capital continues, financing conditions are favourable, and space is needed. Rising orders are an indicator of the overall market development.
For investors, this creates two perspectives. First, new construction activity brings additional apartments in Berlin to the market, creating new investment opportunities. Second, strong building activity in boroughs such as Mitte or Friedrichshain-Kreuzberg raises the overall quality of existing stock and supports value development.
Full order books at construction firms suggest that building activity will remain at a high level throughout 2015.
