Vdp member institutions are recording an upward trend
Those in the Association of German Pfandbrief Banks (vdp) Organized institutes reported a slight recovery in new real estate financing business in the third quarter 2023. With a volume of 30,7 Mrd. Euro shows an increase of 15,8% compared to the previous quarter, whereby the loan commitments for residential- and commercial real estate have increased equally. Despite the upswing in the third quarter, the year recorded 2023 compared to the previous year, a decrease of 21,5%, where the total volume of new business is 39,1 Mrd. Euros. The commitments for housing- and commercial real estate indicate a slight stabilization of the financing market, although the general conditions remain challenging. Jens Tolckmitt, General Manager of the vdp, emphasizes the recurring planning security due to the expiring dynamic interest rate rise. Loan commitments for residential real estate are increasing compared to the previous quarter 13,4%, while commercial real estate around 19% increase. However, both asset classes recorded declines year-on-year.
Commercial real estate financing dominates, but with a declining trend
The total volume of commercial real estate financing is 13,8 Mrd. euros in the third quarter. Office properties make up a share of 45% out, although the sufficient volume in the quarter- and year-on-year comparison decreases. The total portfolio of real estate loans extended by the vdp member institutions remains stable over the quarter 1.004,0 Mrd. Euro and shows a slight increase over the year 1,1%.