Markit Economics released construction purchasing managers' index (PMI) for Germany on Friday. Germany's construction PMI increased to 59.6 in February from 55.5 in. it was the highest level since March 2011.
A reading above 50 indicates expansion in the sector.
The index was driven by a rise in new business and employment.
"Residential building activity remained the main pillar of the upturn, increasing at the strongest rate in the sixteen-and a-half year survey history," an economist at Markit, Oliver Kolodseike, said.