The real estate financing market is experiencing significant growth. Institutes affiliated with the German Association of Pfandbrief Banks reported that in the first half of 2026, they issued €80.4 billion in real estate loans, marking an increase of 8.5 percent compared to the same period last year, according to the VDP on Monday.
Residential loans constituted the largest segment, making up 62.3 percent of the total volume and reaching €50.1 billion. This growth represents a 5.3 percent increase year-over-year.
In the commercial sector, loans saw a notable increase of 14.3 percent, totaling €30.3 billion. Financing for retail buildings performed particularly strongly, surging by 40.6 percent to hit €9 billion. While lending for office complexes and hotels also increased, new business involving industrial buildings and other commercially used properties declined.
Jens Tolckmitt, Chief Executive Officer of the association, stated that the Pfandbrief banks’ business performance is solid but remains below the volumes seen before interest rates rose. He forecasts only slight increases for the second half of the year. Tolckmitt also called upon policymakers to strengthen the promotion of homeownership, noting that owning one’s own home serves as the best form of retirement provision. He added that reducing the property transfer tax for owner-occupiers could lower barriers to homeownership and consequently alleviate pressure on the rental housing market.
