German building permits jump 30 pct in H1 mainly due to refugees

The number of building permits in Germany jumped by 30 percent in the first half of 2016, official data showed on Thursday.

The figure suggests a boom in real estate sector which analysts said was mainly due to low interest rates and housing demand from refugees.

In the first six months of 2016, 182,800 building permits were issued in Germany, said German federal statistics office Destatis, 30.4 percent more than in the same period of previous year, standing at its highest level since 2000.

A total of 156,986 permits were issued for new buildings, 28.2 percent more than a year earlier, while 25,834 permits were issued for construction in existing buildings, up 45.5 percent.

Analysts said record low interest rates, stable labor market and an influx of refugees boosted the real estate market.

According to Destatis, 12,400 permits were issued for hostel-style residential buildings which include shelters for refugees in the first half of 2016, rocketing 174.2 percent year-on-year.

Investment in construction sector contributed to the 0.7 percent growth of Europe's biggest economy in the first quarter. In the following three months, however, construction investment shrank as the usual spring revival was weaker due to the mild winter. Enditem