German Pfandbrief banks enhance lending for actual property | EUROtoday

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Residential actual property loans climbed 7.2 p.c year-on-year to EUR 17.8 billion, the perfect quarterly end result for the reason that third quarter of 2022. At that point, the quantity was EUR 22.1 billion. Commercial actual property loans had been capable of roughly keep their degree in comparison with the identical quarter final yr at EUR 9.2 billion.

“Residential property financing is sending positive signals. Rising real wages and stable loan interest rates are having a positive effect on the financial flexibility of private households,” stated VDP CEO Jens Tolckmitt. “Institutional investors, on the other hand, remain cautious. The start to 2024 has been correspondingly cautious for the financing of rental residential buildings and commercial properties.”

For your complete actual property financing enterprise of the VDP banks in 2024, the affiliation nonetheless expects a rise in comparison with the earlier yr – because of the anticipated optimistic growth in residential actual property loans.

The VDP’s members embody round 50 banks, together with BayernLB, LBBW, Deutsche Pfandbriefbank, Deutsche Bank and Commerzbank.