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German property lenders see slight pickup in financing in 2024

Published 03/27/2024, 04:19 AM
Updated 03/27/2024, 04:50 AM
© Reuters. FILE PHOTO: Cranes of a construction site are seen near a residential building, ahead of the summit for affordable housing and construction at the Chancellery in Berlin, Germany September 25, 2023. REUTERS/Lisi Niesner/File Photo

FRANKFURT (Reuters) - German property lenders are forecasting a slight revival in real-estate financing this year after a sharp slowdown in 2023 amid the most severe property crisis in decades, according to the VDP banking association on Wednesday.

Credit for the construction and purchase of residential and commercial real estate tanked 31% in 2023 from 2022, VDP said, but the final three months of 2023 revealed a 5.2% increase in lending from the same period a year earlier.

This "suggests that the financing business is beginning to stabilize," said VDP's chief executive Jens Tolckmitt.

"We expect new real estate financing business to pick up slightly in the current year."

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