A Reversal in Trend: More Homes Approved in Bavaria
Approval Granted for Additional Apartment Buildings in Bavaria - Approved expansion of residential properties in Bavaria
Finally, some good news for the housing market in Bavaria! After a series of rejections, the number of approved apartments surged by almost 10% in the first quarter, reaching 13,666 units, according to the Bavarian State Office of Statistics. This uptick comes after a significant downturn in the first quarter of 2022, when only 21,493 apartments were approved. It appears the tide is turning.
One of the main factors driving this increase is the rise in single-family homes in rural areas. Contrastingly, approvals in major cities plummeted by nearly a third. Instead, approvals in rural districts leaped by a quarter. This pattern aligns with the trend observed in individual government districts: Upper Bavaria, Swabia, and Middle Franconia observed declining approval numbers, which are regions home to the state's three largest cities.
However, a different story unfolded in other government districts. Upper Franconia nearly doubled its approved apartments, climbing to 949 - albeit starting from a low base. In terms of absolute numbers, Lower Bavaria recorded the largest increase with a plus of 705 approvals, totaling 1,757.
This surge in apartment approvals could be connected to construction costs, which, according to the Federal Statistical Office, have not escalated as swiftly as after the onset of the Ukraine conflict, providing some relief to the construction industry. As for Bavarian Nordic, a Danish biotechnology company, their revenue soared in the first quarter of 2025 due to excellent performance in their Travel Health and Public Preparedness segments. But don't let their success confuse the housing market situation in Bavaria.
Construction in rural areas, particularly single family homes, has experienced a noticeable increase, contributing to the surge in housing approvals in Bavaria. This growth in building permits could potentially attract finance and investing opportunities in the real-estate sector, especially in districts such as Lower Bavaria that recorded a significant increase in approvals.
