Residential real estate financing as well as construction and transaction volumes
2021 to the same extent
Berlin (ots) – vdp expects declining residential and commercial space in 2022
commercial financing volumes
The disbursement volume for residential real estate financing in Germany amounted to
to 278.6 billion euros in 2021. This corresponds to an increase of 11.4% compared
the previous year, as carried out by the Association of German Pfandbrief Banks (vdp).
Calculations based on information from the credit and
Insurance industry associations and the Deutsche Bundesbank revealed. the
The development of residential real estate financing thus almost corresponded to the growth of the
Construction and transaction volume (plus 11.9% compared to 2022 to EUR 521.9 billion).
In the first six months of 2022, 140 billion euros were used to finance
Residential real estate committed, which is a plus again compared to the same period last year
of 3% corresponds. Compared with the development in the previous two years, the
showed growth rates of 10% and 11%, respectively, despite the COVID-19 pandemic
Dynamics – especially in the second quarter of 2022 – thus significantly. For this
Developments include the rise in interest rates, the economic
Uncertainties due to the Ukraine war, the massive increase in
responsible for energy prices and inflation. Added to this is the consistent
Application of safety-oriented lending standards to the
credit institutions. On the positive side, the structure of lending
has remained largely stable for years. That’s the leverage ratio
in the overall market stable at around 53%, the increased prices were accompanied by a plus
balanced in equity.
Decrease in the proportion of borrowed funds in commercial real estate financing
Payments for commercial real estate financing added up in 2021
43.2 billion euros – the volume was 3% above the value for 2020, but remained
behind the development of the construction and transaction volume, the one
growth of 14%. The average leverage decreased from 29% in
2019 to 27% in 2021. The reason for this is essentially
the high liquidity of institutional investors, but also the increasing importance
of alternative non-bank financing as a result of increasing regulatory
Requirements for the lending business operated by banks are reflected in
reflect this development.
“Momentum on the residential real estate market has slowed considerably” Jens Tolckmitt
“The dynamics in the residential real estate market have changed given the changed
framework conditions have recently eased considerably. Have on the demand side
the higher financing costs the activities of numerous institutional
Investors stopped, so for the second half of 2022 no noticeable
revival of transaction activity is to be expected. For self-used
Home ownership, the rise in interest rates mean that the acquisition in particular
increasingly difficult for emerging households given the existing price level
becomes. Against the background of the previous development in 2022, this is closed
expect that for 2022, for the first time since 2009, there will be a slight decline in
new financing business is to be expected compared to the previous year”, says
Tolkmitt.
Depressed mood on the commercial real estate market
On the commercial real estate market, which responds more quickly to cyclical changes than
the housing market is reacting, the overall mood is subdued. On the
Office real estate market are currently construction projects and investment decisions
put to the test, so that there is no increase for the second half of 2022
is to be expected in the rental and transaction volume. the stationary one
Retail is burdened by consumers’ reluctance to spend.
On lending for office and retail real estate, the current
framework conditions have a dampening effect. Which are comparatively dynamic
developing logistics asset class is too small to see declines in others
to balance segments. “As with new construction projects and on the investment market for
no significant impetus is to be expected in the further course of 2022
are, is more commercial in terms of new lending business
Real estate for 2022 a declining development compared to the previous year
expect,” says Tolckmitt.
The “Spotlight” can be downloaded free of charge from the vdp website at
https://www.pfandbrief.de/site/de/vdp/publikationen/publikationen.html.
About the Association of German Pfandbrief Banks (vdp)
The Association of German Pfandbrief Banks is one of the five central associations
German credit industry. He represents the most important financiers for
residential and commercial construction as well as for the state and its institutions.
Press contact:
Carsten Dickhut
T +49 30 20915-320
Email to: [email protected]
Horst Bertram
T +49 30 20915-380
E mail to: [email protected]
Further material: http://presseportal.de/pm/29608/5314960
OTS: Association of German Pfandbrief Banks (vdp) registered association