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Building Project Development in Germany - Market Research Report (2015-2030)

Robert Maier Robert Maier Frankfurt, Germany Last Updated: June 2025 WZ F41.10DE

Revenue

€23.9bn

2025

€23.9bn

Past 5-Year Growth

Profit

€X.Xbn

Employees

35,248

Businesses

5,454

Wages

€X.Xbn

Building Project Development in Germany industry analysis

In the first half of the past five-year period, the property development industry benefited greatly from the historically low interest rates in the European Economic Area between 2016 and 2022. In the second half of the past five-year period, however, market activity slowed significantly. This development was caused by a sharp rise in construction costs on the one hand and the tightening of monetary policy initiated by the European Central Bank from mid-2022 onwards, which significantly worsened financing conditions for property developers and potential property buyers on the other. The high inflation rates in 2022 and 2023 and the associated loss of purchasing power also had a dampening effect on demand for property. Under these circumstances, large and small property developers scaled back their new-build projects or postponed their realisation. Against this backdrop, turnover in the property development sector fell by an average of 7.3% per year between 2020 and 2025.In 2025, industry turnover is expected to grow by 0.9% compared to the previous year and reach 23.9 billion euros. This development is due to the weak recovery trends that the domestic property market has been showing since 2024.Over the next five years, IBISWorld expects average annual sector growth of 2.7% and a sector turnover of 27.3 billion euros by 2030. Around three quarters of the sector's turnover will be generated with residential property. Due to the continuing high demand for residential space and the increasing scarcity of suitable building land, even in the less dynamic market environment of the coming five-year period, more multi-storey flats are likely to be built, often using the services of a property developer.

Trends and Insights

  • The period of low interest rates between 2016 and 2021 created a positive market environment for property developers. The construction industry, particularly residential construction, experienced an upturn in this environment and the high demand for housing was reflected in sharply rising property prices.
  • The construction of apartment blocks is the sector's most important field of activity. The sale of these buildings and the associated plots of land generates over half of the sector's turnover.
  • The Süd region has the largest share of companies in the construction industry. It has been the most economically powerful region in Germany for decades.
  • Developers that have close business relationships with major buyers of buildings, such as property funds, have a decisive competitive advantage in the industry. This is often the case with companies that have been in the market for a long time.
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Competitors

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Industry Statistics and Trends

Market size and recent performance (2015-2030)

Industry revenue has declined at a CAGR of 7.3 % over the past five years, to reach an estimated €23.9bn in 2025.

Trends and Insights

Property developers must be able to assess project risks well in order to be successful in the long term

  • Property developers are companies that renovate or build residential and commercial properties at their own risk and then sell them. In contrast to construction companies, which build on land that is already owned by their clients, property developers own the land in question and therefore also act as the client vis-à-vis the authorities and commissioned construction companies.
  • Additional trends and insights available with purchase
Building Project Development in Germany
Revenue (2015-2030)
IBISWorld Logo Source: IBISWorld

Industry outlook (2025-2030)

Market size is projected to grow over the next five years.

Trends and Insights

The market for sustainable development projects is gaining in importance

  • Sustainable and particularly energy-efficient construction projects are becoming increasingly popular among consumers and investors. The background to this development is the ongoing social endeavours to reduce greenhouse gas emissions in the building sector, as set out in the Building Energy Act, the Climate Protection Act and the EU Buildings Directive, for example.

Biggest companies in the Building Project Development in Germany

Company
Market Share (%)
2025
Revenue (€m)
2025
BPD Europe B. V.
671.0
Bonava AB
665.0
Instone Real Estate Group SE
565.0

To view the market share and analysis for all 4 top companies in this industry, view purchase options.

Products & Services Segmentation

Building Project Development in Germany
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Apartment blocks, Detached and semi-detached houses and Non-residential buildings without office buildings. Apartment blocks is the largest segment of the Building Project Development in Germany.

Trends and Insights

The construction of apartment blocks is the sector's most important field of activity

  • Apartment blocks consist of at least three residential units, which are typically spread over several storeys. Larger apartment blocks are categorised as multi-storey residential buildings.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

The industry participants acquire and develop building plots. They also commission construction companies to build non-residential and residential buildings and then sell these to customers. Land and buildings are only offered to customers as a package.

What's included in this industry?

Products and services covered in the Building Project Development industry in Germany include Apartment blocks, Detached and semi-detached houses, Non-residential buildings without office buildings and Office building.

Companies

Companies covered in the Building Project Development industry in Germany include BPD Europe B. V., Bonava AB and Instone Real Estate Group SE.

Purchase this report to view all 4 major companies in this industry.

Related Terms

Related terms covered in the Building Project Development industry in Germany include general contractor, subcontractors, builder and smarthome.

Industry Code

WZ 2008

WZ 41.10 - Building Project Development in Germany

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

The period of low interest rates between 2016 and 2021 created a positive market environment for property developers. The construction industry, particularly residential cons...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2015-2024) and forecast (2025-2030)
  • Employees, including historical (2015-2024) and forecast (2025-2030)
  • Businesses, including historical (2015-2024) and forecast (2025-2030)
  • Profit, including historical (2015-2025)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

The construction of apartment blocks is the sector's most important field of activity. The sale of these buildings and the associated plots of land generates over half of the...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2025
  • Product innovation level

Charts

  • Products & services segmentation in 2025
  • Major market segmentation in 2025

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

The Süd region has the largest share of companies in the construction industry. It has been the most economically powerful region in Germany for decades.

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2025

Tables

  • Number and share of establishments in each region in 2025
  • Number and share of revenue each region accounts for in 2025
  • Number and share of wages each region accounts for in 2025
  • Number and share of employees in each region in 2025

Detailed analysis

  • Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Developers that have close business relationships with major buyers of buildings, such as property funds, have a decisive competitive advantage in the industry. This is often...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2020-2025
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

The construction industry is predominantly characterised by small and medium-sized companies. The four largest industry players together only account for a market share of ju...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2021 through 2025
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2025
  • Overview of BPD Europe B. V.'s performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of Bonava AB's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of Instone Real Estate Group SE's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of revenue, market share and profit margin trend for one additional company

Detailed analysis

  • Description and key data for BPD Europe B. V., and factors influencing its performance in the industry
  • Description and key data for Bonava AB, and factors influencing its performance in the industry
  • Description and key data for Instone Real Estate Group SE, and factors influencing its performance in the industry
  • Description, key data and performance trends for one additional company

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

The expected growth in average monthly net household income is favourable for the property development sector. In order to be able to bear the costs of buying a new property,...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2015-2030) 
  • Assistance historical data and forecast (2015-2030) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

The profit margin of industry players is currently below the average of the past five years. The higher interest rate level since 2022 has had a dampening effect on the const...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2015-2030)
  • Revenue per Employee (2015-2030)
  • Revenue per Enterprise (2015-2030)
  • Employees per Establishment (2015-2030)
  • Employees per Enterprise (2015-2030)
  • Average Wage (2015-2030)
  • Wages/Revenue (2015-2030)
  • Establishments per Enterprise (2015-2030)
  • IVA/Revenue (2015-2030)
  • Imports/Demand (2015-2030)
  • Exports/Revenue (2015-2030)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2015-2030)
  • IVA (2015-2030)
  • Establishments (2015-2030)
  • Enterprises (2015-2030)
  • Employment (2015-2030)
  • Exports (2015-2030)
  • Imports (2015-2030)
  • Wages (2015-2030)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Building Project Development industry in Germany in 2025?

The market size of the Building Project Development industry in Germany is €23.9bn in 2025.

How many businesses are there in the Building Project Development industry in Germany in 2025?

There are 5,454 businesses in the Building Project Development industry in Germany, which has declined at a CAGR of 7.3 % between 2020 and 2025.

How may import tariffs affect the Building Project Development industry in Germany?

The Building Project Development industry in Germany is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.

How may export tariffs affect the Building Project Development industry in Germany?

The Building Project Development industry in Germany is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.

Has the Building Project Development industry in Germany grown or declined over the past 5 years?

The market size of the Building Project Development industry in Germany has been declining at a CAGR of 7.3 % between 2020 and 2025.

What is the forecast growth of the Building Project Development industry in Germany over the next 5 years?

Over the next five years, the Building Project Development industry in Germany is expected to grow.

What are the biggest companies in the Building Project Development industry in Germany?

The biggest companies operating in the Building Project Development industry in Germany are BPD Europe B. V., Bonava AB and Instone Real Estate Group SE

What does the Building Project Development industry in Germany include?

Apartment blocks and Detached and semi-detached houses are part of the Building Project Development industry in Germany.

Which companies have the highest market share in the Building Project Development industry in Germany?

The company holding the most market share in the Building Project Development industry in Germany is BPD Europe B. V..

How competitive is the Building Project Development industry in Germany?

The level of competition is high and increasing in the Building Project Development industry in Germany.

Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in Germany include:

  • German Federal Statistics Office (Destatis)
  • European Statistics Office (Eurostat)
  • United Nations Comtrade

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

Learn more about our methodology and data sourcing on the Help Center.

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