Increased construction demand on the long term - What will happen to housing demand?

According to the latest Ifo construction forecast, the demand for new residential buildings will remain very reserved and will not reach the level of 2000 until 2015. For 2005 the Ifo Institute estimates that there were ca. 260,000 housing completions - a decline in comparison to 2004 (280,000 completions), which was marked by carrying-forward effects. In the forecast period (2005-2015) annual housing completions will again reach 300,000 and more but will still be below the calculated long-term requirement of 350,000 units. However, stepped-up renovation measures in existing buildings can increase a unit's service life. Increased investments are expected precisely in existing residential buildings. The paradigm change in politics towards the preservation and improvement of the housing supply has played the decisive role here. In the meantime almost all supporting measures are aimed at the existing stock of buildings. Also the energy certificate required by the EU will touch off investments in energy saving. 75 percent of existing housing is older than 25 years and does not meet the latest energy-saving requirements.