Real estate financing business of vdp member institutions amounts to EUR 107.3 billion from January to September 2025
In the first three quarters of 2025, the institutions affiliated to the Association of German Pfandbrief Banks (vdp) extended real estate loans with a volume of EUR 107.3 billion – 18.2% more than in the same period of the previous year (Q1-Q3 2024: EUR 90.8 billion). The third quarter of this year alone accounted for a new business volume of 37.2 billion euros – an increase of 20.4% compared to the third quarter of 2024 and the highest quarterly figure since autumn 2022.
Residential real estate loans in particular contributed to the increase in financing business in the first three quarters of this year: financing for the construction and acquisition of residential properties totalled EUR 67.7 billion, up 19.0% year-on-year (Q1-Q3 2024: EUR 56.9 billion). For the third quarter alone, commitments for residential real estate loans amounted to more than EUR 21.7 billion. This means that the commitment volume from the direct previous quarter was again reached (Q2 2025: EUR 21.6 billion).
Commercial real estate loans also recorded a noticeable increase in the reporting period, reaching a volume of EUR 39.6 billion, an increase of 16.8% compared to the first three quarters of 2024 (Q1-Q3 2024: EUR 33.9 billion). With a volume of new business in loans for commercial real estate of EUR 15.5 billion, the third quarter was the strongest financing so far this year. Compared to the same quarter of the previous year, financing increased by 32.5% (Q3 2024: EUR 11.7 billion).
The real estate financing business of our member institutions is picking up noticeably – despite continuing challenges in the real estate market.
“The real estate financing business of our member institutions is picking up noticeably – despite the continuing challenges in the real estate market,” explained vdp Managing Director Jens Tolckmitt. The increased volume of residential real estate loans does not signal any easing in the residential real estate market. This is because the vast majority of the banks’ financing business concerns existing properties, not new buildings. The increase in the commercial real estate financing business, on the other hand, is a good sign that the trough in this segment is likely to have been passed. “In view of the low level, however, this development should not be overinterpreted.”
Residential real estate financing: Multi-family buildings with the largest growth
With a volume of 33.4 billion euros, loans for detached and semi-detached houses accounted for almost half of new business for residential properties (67.7 billion euros). The year-on-year increase in the first nine months of this year was 16.8% for detached and semi-detached houses. The condominiums and multi-family building segments recorded financing volumes of EUR 14.0 billion and EUR 16.7 billion respectively and growth rates of 14.8% and 29.5% respectively in the reporting period. Loans for other residential properties reached a value of EUR 3.6 billion (+12.5%).
Commercial real estate financing: growth rates consistently above 10%
The total volume of commercial real estate loans of EUR 39.6 billion was again mainly due to the granting of loans for office properties, which amounted to EUR 19.7 billion in the first three quarters of this year, an increase of 12.6% compared with the same period a year earlier. Loans for commercial buildings and hotels also recorded double-digit growth rates from January to September this year compared to the first nine months of 2024. While lending for industrial buildings more than doubled to EUR 1.4 billion, it rose by 19.6% to EUR 5.5 billion for other commercial properties.
Slight increase in real estate financing portfolio
As of 30 September 2025, real estate loans extended by vdp member institutions totalled €1,031.9 billion, a slight increase in the real estate financing portfolio compared with the direct previous quarter (Q2 2025: €1,029.5 billion). Properties in Germany continued to account for the vast majority of the financing volume (share: 87%).
The complete data on the real estate financing business of the vdp member institutions, as well as tables and graphs for free use, are available on the vdp website – under the following LINK.
