Bavaria: the land of real estate financing
09.08.2011 by Münchener Hypothekebank
The sustained growth of Bavaria’s economy manifests itself in the state’s low rate of unemployment and in its increasing population. These operating conditions ramify positively upon Bavaria’s real estate market, which features rates of home ownership and of vacancy of residential and commercial real estate that are respectively above and substantially below Germany-wide averages. Already high, demand in Bavaria for real estate has continued to rise this year. The state is particularly popular with investors prizing 1a properties.
Especially popular is greater Munich, due to its prosperity and to its positive demographics. These make the region’s residential and commercial real estate strongly sought after. In 2010, Munich was Germany’s large market for office space, based on square meters of property sold and let out. The market even recorded a more than 10% y-on-y rise. Demand is running nearly as strongly in other regions of Bavaria, with this especially including the state’s medium-sized cities. This demand joins with the thoroughgoing solidity of Bavaria’s economy in providing real estate investors with attractive opportunities.
This demand is being satisfied by the wide range of high quality real estate financing offered by the state’s well-developed financial community. Prime component of this are the state’s banks, which account for one quarter of Germany’s total. This number guarantees a state-wide supply of financing at highly competitive prices and at attractive conditions. Profiting from this are private purchasers of and professional investors in real estate.
“All real estate markets are primarily regional in nature.” This maxim also applies to Bavaria, which is comprised of a number of regional markets, each with its own set of demographic and economic trends. The divergences prevailing among these mandate offering both standard and individual-needs packages of financing. Increasingly sought after are solutions possessing the flexibility enabling them to be configured to meet on-site conditions and customer wishes. This flexibility is derived from in-depth knowledge of local and region markets. This knowledge constitutes one of the assets of Bavaria’s financial community, which includes a large number of regional banks.
Dr. Louis Hagen
Speaker of the Executive Board of Münchener Hypothekenbank eG
Especially popular is greater Munich, due to its prosperity and to its positive demographics. These make the region’s residential and commercial real estate strongly sought after. In 2010, Munich was Germany’s large market for office space, based on square meters of property sold and let out. The market even recorded a more than 10% y-on-y rise. Demand is running nearly as strongly in other regions of Bavaria, with this especially including the state’s medium-sized cities. This demand joins with the thoroughgoing solidity of Bavaria’s economy in providing real estate investors with attractive opportunities.
This demand is being satisfied by the wide range of high quality real estate financing offered by the state’s well-developed financial community. Prime component of this are the state’s banks, which account for one quarter of Germany’s total. This number guarantees a state-wide supply of financing at highly competitive prices and at attractive conditions. Profiting from this are private purchasers of and professional investors in real estate.
“All real estate markets are primarily regional in nature.” This maxim also applies to Bavaria, which is comprised of a number of regional markets, each with its own set of demographic and economic trends. The divergences prevailing among these mandate offering both standard and individual-needs packages of financing. Increasingly sought after are solutions possessing the flexibility enabling them to be configured to meet on-site conditions and customer wishes. This flexibility is derived from in-depth knowledge of local and region markets. This knowledge constitutes one of the assets of Bavaria’s financial community, which includes a large number of regional banks.
Dr. Louis Hagen
Speaker of the Executive Board of Münchener Hypothekenbank eG