Construction Industry Survey 2011: Modernization Boosts Construction Upswing
In 2010 the East German construction sector has raised mainly thanks to a very strong demand for renovation and modernization activities of private households. This segment is likely to continue its overall trend towards growth in 2011 due to an increase in average net incomes and low mortgage interest rates. The private non-residential sector will be boosted by a strong development of the whole German economy. However, the civil contractors look to the future more skeptically. Their activities depend to a large extent on public investment, which as a result of diminishing stimulation after the crisis will likely shrink in 2011.