The increase, which lifted approvals to around 19,000 apartments, followed a decline in May but came from historically low levels.

BERLIN, Aug. 18 (Xinhua) -- Home building permits in Germany rose 7.9 percent in June from a year earlier, data from the Federal Statistics Office (Destatis) showed on Monday, offering a glimmer of relief for a property sector mired in its deepest slump in decades.

The increase, which lifted approvals to around 19,000 apartments, followed a decline in May but came from historically low levels. Permits are a key indicator of future construction activity.

In the first half of the year, permits climbed 2.9 percent to about 110,000 units, an increase of 3,100 compared with the same period last year. However, the rise reflects a weak base, as approvals in the first six months of 2023 had dropped to their lowest level since 2010.

Germany's construction sector has been under severe strain since 2022, battered by higher interest rates and soaring building material costs that ended a years-long boom. Demand for single-family homes provided the main driver of the modest rebound in recent months.

Industry groups remain cautious. "Instead of an upturn, we are seeing the old pattern: slight ups and downs at historically low levels. There is currently no impetus that could pull residential construction out of the crisis," said Felix Pakleppa, head of the Central Association of the German Construction Industry.

Tim-Oliver Mueller, managing director of the German Construction Industry Federation, also pointed to structural hurdles. He said the severe housing shortage in metropolitan areas showed no sign of easing.

"One of the greatest obstacles to expanding housing construction, especially in metropolitan regions, is the lack of available and affordable land," Mueller said. ■