Immobilienfinanzierung durch Markt und Regulierung belastet

Tobias Just and Wiersma Simon
Additional contact information
Wiersma Simon: Universität Regensburg, International Real Estate Business School.Germany

ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, 2025, vol. 74, issue 1, 126-138

Abstract: The current distortions on the German real estate markets are primarily due to the turnaround in interest rates and rising construction costs: after more than ten years of price increases, transaction and financing volumes have been declining since the second quarter of 2022. Banks are responding with caution, loan-to-value ratios remain low despite falling prices, and the focus is shifting to rented properties in inner-city locations. The persistently low default rates on real estate loans are reassuring, especially compared to the period after the financial and economic crisis of 2007/2008. This applies in particular to residential real estate, but, with some slight reservations, also to commercial real estate. However, the new construction sector is under massive strain because a lot of capital is needed and both debt capital issued by banks as well as mezzanine capital may not be sufficiently available at affordable costs. There is no short-term improvement in prospect. In view of this market environment, the question arises as to whether recent regulatory measures could further aggravate the situation. We should mention here the 150 % capital requirement for project developments and the introduction of a 2 % sectoral systemic risk buffer for the financing of residential real estate as of 1 February 2023. Since the real estate market had already passed its cyclical peak, these measures will probably not have the anti-cyclical impact primarily intended, but rather a pro-cyclical effect.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1515/ordo-2024-2011 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bpj:ordojb:v:74:y:2025:i:1:p:126-138:n:1013

Ordering information: This journal article can be ordered from
https://www.degruyte ... ournal/key/ordo/html

DOI: 10.1515/ordo-2024-2011

Access Statistics for this article

ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft is currently edited by Christian Müller

More articles in ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft from De Gruyter
Bibliographic data for series maintained by Peter Golla ().