Germany building booms on low costs

The number of residential building approvals in Germany rose 8.4% to 309,000 in 2015, the highest in 15 years, the Federal Statistics Office said, as Europe’s largest economy experiences a construction boom.

Record low borrowing costs is encouraging many Germans to overcome their traditional aversion to buying their own flats and houses, with some also regarding property as an attractive investment.

Rising state spending on refugees and special tax incentives for investors who build flats in urban areas are expected to give the construction sector an additional push.