New business in mortgage lending fell to EUR 13.7 billion in May 2023.
(Photo: IMAGO/Harry Koerber)
Frankfurt, Munich New business in mortgage lending fell by around half in May compared with the same month last year. Overall, the banks in Germany granted private real estate loans amounting to 13.7 billion euros, the analysis house Barkow Consulting determined, citing Bundesbank data on Wednesday.
That was the lowest volume in May since 2005. Already in the months of January to April 2023, new business with private real estate loans shrank by around half compared to the same month last year.
Construction financing had boomed by the summer of 2022. As a result of the turnaround in interest rates and significantly more expensive building loans, business has recently collapsed. Higher material prices and the uncertainty about the further development of real estate prices are causing restraint. In addition, residential buildings often have to be renovated in terms of energy efficiency.
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