German construction sales seen 3 percent higher in 2016 - association
BERLIN (Reuters) - A boom in house building and higher state spending on roads will boost German construction sales by 3 percent to 103 billion euros (77.19 billion pound) this year, its highest level since 2000, the HDB construction industry association said on Wednesday.
It expects revenues from residential construction to jump by 5 percent on the year in 2016 and from the public sector to rise 4 percent while commercial construction is likely to stagnate.
Nearly 290,000 new flats will be built this year, but this still is not enough to meet demand in light of the rising numbers of refugees and growing urban population, HDB president Thomas Bauer said.
"In metropolitan areas, affordable housing is in short supply," Bauer warned, adding that more than 400,000 flats needed to be built annually in the next years to avert housing shortages in cities.
The government should therefore stimulate more building by increasing tax write-offs for property investors and doubling its funds for public housing, the association said.
(Reporting by Michael Nienaber; Editing by Madeline Chambers)
