Because fewer and fewer Germans want to build, the Pfandbrief banks granted fewer real estate loans in 2022 than in the previous year.
(Photo: obs)
Frankfurt Interest rate shock, inflation, high construction costs: the German real estate market is currently struggling with many problems. The long boom is over and prices have recently slid down almost nationwide, although there are first signs of stabilization. But the trend reversal on the German real estate market is not over yet, believe the most important real estate financiers.
“For the current year 2023, we expect prices to continue to fall – across all property classes,” said Georg Reutter, President of the Association of Pfandbrief Banks (Vdp), in Frankfurt on Monday. From today’s perspective, however, an abrupt slump in real estate prices is still not to be expected.
According to estimates by the most important financiers, the prices for residential real estate in Germany will not recover any time soon. “We are currently experiencing the long-awaited phase of the price correction,” said Reutter. The Vdp currently has almost 50 members, including BayernLB, Helaba, Aareal Bank, Deutsche Bank and Commerzbank.
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