With our dashboard you can keep an overview of the German real estate market. All major developments, You can find a summary of which are relevant for real estate financing here.
Disclaimer: The data is automatically updated regularly as soon as it is available, However, we assume no liability for accuracy, Currentness and completeness. This content does not constitute a recommendation for action and does not replace individual investment advice - it serves purely for informational purposes.
Inflation
Inflation, measured by the consumer price index (VPI), shows the average price increase for goods and services, that are purchased by households. The causes are increasing demand and costs. Moderate inflation can encourage spending and reduce debt, while high inflation reduces purchasing power and creates uncertainty. Central banks use monetary policy, to control inflation and ensure price stability.
Key interest rate
The increase in the key interest rate by the ECB has no direct impact on property buyers. Nevertheless, it leads to higher costs for credit institutions, who borrow money from the ECB. To offset these costs, The institutes could charge higher interest rates for construction financing and thus pass on the increased key interest rates to property buyers.
Federal bond
The interest rates for real estate loans are not directly influenced by the key interest rate, but essentially through the yield on ten-year federal bonds. If this return increases, The interest rates on real estate loans also increase. Banks borrow money from institutional investors and offer them Pfandbriefe in return, that are secured by real estate. The interest rate, which the banks have to pay to investors for the money they borrow (Pfandbriefzins), is passed on to borrowers at a premium. This Pfandbrief interest rate is based on the yield on ten-year federal bonds and therefore has a significant influence on the interest rates for real estate loans.
Mortgage Pfandbriefe & Public Pfandbriefe
Mortgage Pfandbriefe are debt securities secured by real estate loans, while public Pfandbriefe are issued by public institutions such as the federal government, States and municipalities are guaranteed. Federal bond yields often serve as a reference point for other bonds, including mortgage Pfandbriefe. When federal bond yields rise, Interest rates on other bonds usually also rise, as investors demand a higher return, to compensate for the higher risk. Vice versa, when federal bond yields fall, Interest rates on other bonds also tend to fall.
Real estate loan volume
The real estate loan volume reflects the total amount of loans, those for purchase, Construction or renovation of real estate can be awarded. It can serve as an indicator of economic and real estate health. An increase can reflect economic growth, low interest rates, improved financial inclusion and increased investor confidence. However, sudden or extreme increases should be viewed with caution, as they could indicate a possible real estate bubble.
Building permit
Property price index
The property price index is an important tool, to track price developments in the real estate market over time. It provides information about the economic health of a region, influences investment decisions by private investors and financial institutions and supports political decision-makers in the development of economic strategies and regulations. A rising index indicates growing demand and economic stability, while a falling index may indicate problems in the market or economy.
Rent price index
The rental price index is a statistical tool, which shows the changes in average rental prices over time. He is important, to understand trends in the housing market. Tenants can use the index to track price developments, while landlords use it, to adjust their rental prices. Investors take the index into account when making investment decisions, and governments use it, to develop housing policy and analyze socio-economic trends. A rising index indicates, that rental prices are increasing on average, while a falling index indicates falling rental prices.
Real estate investment market / profitability
The profitability of real estate investments is influenced by various factors. In the past, interest rates were particularly high- as well as demographic developments are crucial. ESG is a new key influencing factor (Environmental Social Governance) or. the energetic properties and configuration of properties (Home Office) added. The general economic situation also plays a role, the demand for real estate in a specific region as well as the political and legal framework play an important role.