Construction boom despite interest rates: USA vs. Germany - a learning experience?

In March 2025, the U.S. Census Bureau reported over 1.3 million newly approved residential units - an increase on the previous year. In Germany, on the other hand, the Federal Statistical Office recorded a decline in building permits of almost 17% for 2024. The differences are clear - and systemic.

The US construction sector is different in many respects: It is capital-driven, modularly organized and operationally efficient. Large institutional investors such as Blackstone and Brookfield dominate project development. New buildings are closely tied to clear profitability calculations - with a focus on ROI, time frame and scalability. Even when interest rates are high, projects are implemented if the framework conditions are right.

Another advantage is that the regulatory burden is significantly lower in many US states. Approval procedures often only take a few weeks, and regional building regulations are more pragmatic than the complex standards and regulations in Germany. At the same time, the broad use of digital tools - from planning software and BIM to real-time controlling - ensures efficiency and cost transparency.

In contrast, the European market is characterized by uncertainty and restraint. High interest rates, exploding material costs, lengthy approval procedures and a significant shortage of skilled workers are slowing down many projects. Added to this is a regulatory environment that is often difficult to plan: ESG requirements, changing funding conditions and different standards make strategic decisions a challenge.

But there are also positive developments: Instead of new construction, many European cities and investors are increasingly focusing on sustainable measures such as repurposing, adding storeys and vertical densification. ESG criteria promote this development - and open up new opportunities for portfolio transformation and CO₂ reduction.

What both markets have in common: The need for digital transparency. Without reliable data, robust forecasts and clear project controlling, neither new buildings nor ESG-compliant conversions can be implemented economically. This is precisely where PROBIS provides support - in the USA and in Europe. As a platform for data-based construction cost controlling and ESG reporting, PROBIS provides clarity in an increasingly complex environment.

Do you want to know how transparency, ESG requirements and cost-effectiveness can be combined in your projects? Talk to us - we'll show you how PROBIS can turn digital control into a competitive advantage.

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