Annual Report 2010 - Muenchener Hypothekenbank eG

The picture was different in the uK. The initial signs of a recov- ery in residential property prices have not yet solidified, since fears of another recession have persisted. in addition, the poor job-market data, together with savings measures announced by the government, and the ongoing credit shortage, made it impossible for many Britons to purchase residential property. As a result, demand for rental housing increased significantly, driving the average rental price to its highest level since 2008. This made investments in rental housing more attractive to institutional investors. The situation in the Spanish residential property market remained critical. Both the continued surplus of available housing and the high unemployment rate of nearly 20 percent prevented the residential property market from recovering. Neither the gov- ernment nor the local banks have been able to stabilise the Spanish housing market to date. The uS market for residential properties remained in a difficult situation. The high unemployment rate, the large number of foreclosures, stricter lending criteria by banks and the generally uncertain overall economic conditions led to a further decline in housing prices. on average, single-family homes have lost approximately a quarter of their value since the start of the housing crisis in the uSA. The market for rental housing, on the other hand, has seen a tangible recovery since the start of 2010, and has again become a focal point for national and inter- national investors. Credit institutions were once again more will- ing to finance these properties or extend existing financing agreements. commerciaL property market – germany in germany, investors in the commercial property market grew increasingly confident over the course of 2010. The trend of focusing property activities on top-quality properties in just a “the effects of the economic and financial market crisis were still being felt in the international residen- tial property markets. countries that had previously experienced booming property markets were particu- larly affected as the sale of residential property fell notably in these markets.” new housing existing housing source: deutsche bundesbank 108 106 104 102 100 98 deveLopment of property prices in germany (year 2005 = 100) 2003 2004 2005 2006 2007 2008 2009 2010