German property lenders foresee modest rebound in real estate in ’24

German property lenders foresee a modest rebound in real estate financing this year following a significant slowdown in 2023 amidst one of the most severe property crises in decades, according to Reuters citing the VDP banking association on Wednesday.

According to VDP, credit for both residential and commercial real estate construction and purchases plummeted by 31 per cent in 2023 compared to 2022. However, the final quarter of 2023 saw a 5.2 per cent uptick in lending compared to the same period the previous year, indicating a potential stabilisation in the financing sector, noted VDP’s CEO Jens Tolckmitt.

He further stated, “We anticipate a slight uptick in new real estate financing business in the current year.”