More new apartments in Bavaria approved - Bavaria's housing market shows cautious recovery with rising home permits in 2025
Bavaria's housing sector has shown signs of recovery in 2025 after years of decline. For the first time in three years, the number of approved residential building permits increased, reaching 54,149 units. This marks a 5.1% rise from the previous year, though the total remains well below levels seen before recent economic challenges.
The rebound was largely driven by single-family homes, which saw 11,665 units approved. Multi-family housing also contributed, with permits rising by 835 to 26,824 units. Dormitories and shared accommodations experienced a notable jump, increasing by 568 to 2,756 units.
Not all housing types followed the upward trend. Two-family homes saw a drop in approvals, falling by 288 to 3,052 units. Non-residential buildings also declined, with 1,215 new homes approved—a decrease of 328 from the previous year. Renovations and expansions of existing residential buildings saw a slight dip, with 8,637 units approved, down 91 from last year.
Regional differences were stark. Five of Bavaria's administrative regions recorded significant gains in permits. However, Southern Bavaria struggled, with Upper Bavaria and Swabia experiencing declines of 9.4% and 9.9% respectively.
Data on housing trends in Bavaria's largest cities—such as Munich, Nuremberg, and Augsburg—remains limited. While isolated projects, like 136 apartments in Munich-Freiham by 2024, have been reported, no comprehensive comparison with rural districts is available.
The increase in building permits suggests a cautious recovery for Bavaria's housing market. Single-family and multi-family homes led the growth, while some sectors and regions continued to lag. Despite the improvement, the overall figures still fall short of pre-war construction levels.
