Geschäftsbericht 2015, englisch

münchener Hypothekenbank eg | annual report 2015 management report 14 Property and Property Financing Markets Residential Property – Germany Growth seen in previous years continued in the German residen- tial property market. Demand for houses and apartments remained high from buyers who sought to buy for their personal use as well as those who bought property as an investment. The reasons behind this did not change in 2015. Due to the overall financial environ- ment, on the one hand the affordability of residential housing im- proved by unchanged low interest rates, despite rising prices. On the other hand low interest rates earned by savers increased the attractiveness of residential property as an investment. Extremely high demand for residential property accelerated the rise of prices paid in the housing market. Based on the Association of German Pfandbrief Banks’ (vdp) property price index, prices rose by 5.9 percent in 2015 over the previous year’s figure. This gain was primarily driven by prices for multi-family houses, which advanced by 7.2 percent. This significant rise is due, in particular, to the great interest shown by institutional investors in residential property as they were under great pressure to invest. This is also reflected by developments seen in the volume of investments made in residen- tial property. Purchases of residential property portfolios made by institutional investors amounted to about € 23 billion in 2015, or nearly 70 percent more than noted in the previous year. “Growth noted in previous years in the residential property market continued. Prices paid for houses and apartments rose at faster pace due to strong demand.” In addition, a further notable increase of 3.8 percent in rents was recorded. Although the development of rental prices weakened slightly in comparison to the previous year, the rental housing vdpResearch GmbH calculations based on information provided by vdp transaction databank As of: February 2016 Development of property prices in germany (year 2003 = 100) 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 120 118 116 114 112 110 108 106 104 102 100 98 122 124 128 126 130 132 Owner-occupied residential property Houses Condominiums 2003200420052006200720082009201020112012201320142015

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