Finance
Banks award significantly more loans for residential properties
Real estate prices had temporarily fallen, now the market is coming back. Consumers and investors take out significantly more loans. Above all, a form of living is required.
After a long doldrum, consumers are again increasingly increasing in real estate loans. In the first quarter, banks awarded new financing for houses and apartments of 24.4 billion euros – almost a third (31.9 percent) more than a year earlier, the Association of German Pfandbriefbanken (VDP) said. The plus was particularly large for loans for apartment buildings with a good 51 percent, according to the association, which represents the most important real estate financiers in this country.
The figures show that the German real estate market is picking up speed again and investors are also increasingly involved – for example with apartment buildings. More loans were also given for commercial properties. “The residential property financing market in particular started noticeably at the beginning of this year,” said VDP general manager Jens Tolckmitt. However, the growth would be part of a low level.
Houses and apartments have noticeably barked after a years of boom since the highlight. The trigger was a strong increase in interest rate that made loans more expensive. Since the construction costs also increased vigorously, many people gave up their plans for building or buying a property. Seller had to reduce their prices.
Strongest price increase since mid -2022
Real estate prices have stabilized since last summer, and the prices recently attracted a lot. In the first quarter, residential properties were 3.6 percent more expensive than a year earlier, the VDP recently reported. The rents also went up significantly. According to the Institute for the World Economy in Kiel (IFW), houses and apartments have been more expensive within twelve months as it has not been as much as in mid -2022.
Most recently, interest rates for ten -year -old real estate loans have stabilized on average at around 3.5 percent. Michael Voigtländer, real estate expert at the German Economy Institute (IW), believes that houses and apartments are more expensive this year. “The widespread mood is no longer that it is still worth waiting,” he said recently at an event by Poll Immobilien broker. “I believe that many people get used to the increased interest rates.” The interest rate level will probably not decrease.
dpa
Source: Stern
