Germany follows the broader European recovery after a particularly sharp fall in housing permits in 2021 and 2022. The government\u2019s \u2018housing construction turbo\u2019 (Bau-Turbo) aims to speed up planning and approvals in high-demand areas. Its impact, however, will depend on local authorities, which may hesitate over loss of control and legal uncertainty.<\/p>\n
The permit data for France at the beginning of the year looked promising. However, the second quarter was disappointing. France expanded its zero-interest mortgage scheme (PTZ: Pr\u00eat \u00e0 Taux Z\u00e9ro) for new-build homes in April 2025 to support first-time buyers and boost housing construction, but the building permit data suggests the policy has yet to gain traction.<\/p>\n
Dutch permits for new homes surged in the second quarter of 2026. Statistics Netherlands has since paused publication of recent data, saying the increase appears implausibly large and may reflect legislative changes related to grid congestion. Limited grid capacity continues to delay new connections and construction projects, while nitrogen restrictions cause further setbacks. The government’s plan to reduce nitrogen emissions of peak polluters and make way for other business activities is now under parliamentary review.<\/p>\n
Spanish housing permits nearly tripled between 2020 and 2024, largely reflecting a rebound from the exceptionally low pre-pandemic era base and a recovery in housing demand. Growth now appears to have peaked, with permits falling by almost 2% in the second quarter of 2026. The government\u2019s PERTE programme, co-financed through European recovery funds, aims to speed up and reduce the cost of housing construction through prefabrication and modular methods, but its impact will take time.<\/p>\n
Business case still difficult
Housing shortages remain severe in many European cities, but new housing projects are more difficult to make commercially viable in some countries than in others. Although permit issuance has increased in many markets, construction costs remain high. Builders and developers often cannot fully pass these costs on to buyers, especially where existing homes are still cheaper than a few years ago. As buyers can choose between new and existing homes, relatively higher new-build prices are likely to push many towards existing properties.<\/p>\n