BERLIN, May 23 (Reuters) - Sales in Germany’s construction sector will grow 4 percent in nominal terms this year, trade association HDB said on Wednesday, raising its forecast from the 2.5 percent predicted in January on the back of strong growth in residential building.
With growth in construction prices of around 2 percent, that should translate into a 2 percent rise in sales in real terms, the HDB added. Stable growth in commercial construction would also contribute to the rise.
The construction sector had a solid start to 2012 despite cold weather with sales up 1 percent in nominal terms.
It would continue on the successful growth path it saw in 2011, albeit at a slower pace. Last year, sales grew 12.5 percent in nominal terms and 9.5 percent in real terms.
“The dynamic development in construction demand at the start of the year promises a continuation of the upswing in the construction sector,” the HDB said.
“With 12.6 billion euros, construction companies registered the highest volume of orders since 2000 for the first quarter, with a rise in orders of around 12.5 percent.”
Demand for property and real estate prices are booming in Germany after years pf stagnation, thanks to the country’s strong recovery from the global crisis and solid labour market. (Reporting by Sarah Marsh, editing by Gareth Jones)