Revenue figures for Berlin's construction sector from February 2016 painted a contradictory picture. Total revenue in firms with 20 or more employees fell by 3.5 percent to 135.2 million euros. Housing construction, meanwhile, grew by 17.7 percent.
Housing decouples from the broader market
The Berlin-Brandenburg Statistical Office reported that only housing and miscellaneous civil engineering (+0.4 percent) posted revenue gains in February 2016. All other construction segments declined. Building capacity in Berlin was increasingly flowing into residential construction, while commercial and public construction lagged behind.
A note on the data
The figures only covered firms with at least 20 employees. Smaller trades businesses, many of which were also active in housing construction, were not included. The actual momentum in residential building was likely even stronger. The time lag is also typical: February data was not published until April 2016.
What this meant for the property market
The revenue shift toward housing reflected the priorities of a growing Berlin. The city needed more housing, and the construction industry responded. For investors, this meant the supply of new-build apartments was increasing, which could moderate prices over time. At the same time, the high investment volumes confirmed that professional market participants continued to believe in Berlin's positive market trajectory.
