The turnaround in interest rates and the general uncertainty are dampening demand for mortgage lending.
(Photo: mauritius images / Ralf Gerard)
Frankfurt The construction financing business has recovered slightly. New business with private real estate loans amounted to 15.4 billion euros in March – an increase of 27 percent compared to February.
For the year as a whole, however, this results in another sharp decline. Compared to March 2022, the volume of new business fell by 53 percent, as the analysis company Barkow Consulting calculated based on data from the Bundesbank. From February 2022 to February 2023, new business slipped by 54 percent – the sharpest drop ever.
According to Barkow, the March development therefore indicates a stabilization of the business at a very low level. As a possible explanation for the significant increase from February to March, Barkow Managing Director Peter Barkow states that banks took longer to approve building loans, but wanted to release them before the Easter holidays.
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