Financing volume of vdp member institutions up 15.7% in 2025
At EUR 148.6 billion, the institutions affiliated to the Association of German Pfandbrief Banks (vdp) granted a significantly higher volume of real estate loans in 2025 than in the previous year. The increase amounted to
15.7% (2024: EUR 128.4 billion). With quarterly figures of between EUR 36.3 billion and EUR 38.2 billion, new business was evenly distributed over the entire year, with the peak being reached in the final quarter.
As in previous years, residential real estate loans dominated the real estate financing business in 2025: financing for residential properties reached a volume of EUR 92.6 billion – an increase of 17.5% compared to the previous year's figure (2024: EUR 78.8 billion).
The volume of new loans for commercial real estate totalled EUR 56.0 billion over all four quarters – an increase of 12.9% compared with 2024.Starting from a low level, new business recovered slightly in the year under review, but remained well below the long-term average in view of the structural changes in the commercial real estate market and the overall economic environment.
"The mortgage banks' real estate lending business increased across almost all property types
in 2025."
Jens Tolckmitt
"In view of the economic and geopolitical circumstances, the Pfandbrief banks are looking forward to a satisfactory real estate lending business in 2025," stated vdp Managing Director Jens Tolckmitt . The volume of new business increased across almost all property classes. According to Tolckmitt, the demand for loans in the residential real estate sector has increased not only for the acquisition of existing buildings, but also for new residential construction, similar to the moderately increasing building permit figures recently presented by the Federal Statistical Office
Residential real estate financing: detached and semi-detached houses at the top
In 2025, new business in residential properties was once again dominated by loans for detached and semi-detached houses – at EUR 44.2 billion, they accounted for almost 48% of the total volume in the residential segment (EUR 92.6 billion). This was followed by loans for apartment buildings and condominiums – with volumes of EUR 22.8 billion and EUR 20.7 billion respectively. At 27.4%, loans for multi-family dwellings recorded the highest growth in the year under review. Detached and semi-detached houses as well as condominiums achieved growth rates of 16.3% and 15.6% respectively.
Commercial real estate financing: more than half is accounted for by offices
With a volume of EUR 28.8 billion, loans for offices accounted for more than half of total new business in commercial real estate in 2025 (EUR 56.0 billion). As in previous years, new business in retail properties and hotels was significantly lower with volumes of EUR 13.5 billion and EUR 4.5 billion respectively. Loans granted for industrial buildings amounted to EUR 1.2 billion in the year under review, and EUR 8.0 billion for other commercial properties.
Stock of real estate financing moves sideways
As of 31 December 2025, real estate loans extended by vdp member institutions amounted to a total of EUR 1,040.3 billion. Although the total real estate financing portfolio remained roughly at the previous year's level (31/12/2024: EUR 1,042.1 billion), the development for the segments varied: an increase of 1.3% in the residential property loan portfolio was offset by a decline of 3.8% in commercial real estate loans. With a share of 85.3%, the vast majority of the financing volume remained attributable to properties in Germany.
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.
