German lending market ‘almost opposite’ of last year

Germany’s lending market has undergone a radical volte-face in the past year, according to Dirk Richolt, head of real estate finance in Germany at CBRE.

‘The lending market is almost the opposite of last year. Banks have real budgets to make and they are becoming more aggressive again. Last year, on the other hand, was mostly about the banking stress tests,’ said Richolt.

In addition, the market has learned some valuable lessons from the financial crisis, he added: ‘The market may not be at the peak but it’s good and is now less driven by debt, with investors taking refuge in hard assets. Subsequently, it is likely to be one of the best years in recent history,’ Richolt added.

Around €30 bn in real estate deals are expected to be transacted in Germany this year, a rise of 20% on the €25 bn transacted last year.