Brexit: Special risk for banks in the real estate sector – Immo News

Brexit – This week’s property news also deals with the topic of Brexit. Manager Magazin writes about analysts revealing that there could be a special risk for Aareal Bank, Deutsche Pfandbriefbank as well as Deutsche Hypothekenbank. These banks are particularly focused on financing commercial property deals in the UK property market. The Frankfurter Allgemeine reports that the government is missing its target for new builds by a wide margin due to the lack of building land. Housing shortages are one of the great social issues of the day. Although politicians have recognised this, more and more obstacles to housing are being created.

Brexit risks for German mortgage banks

The Brexit occupies the media and humanity with the question of how it will continue. What does this mean for the real estate industry? The US rating agency Moodys has taken a look at some German mortgage banks in the event of a British exit from the EU. Analysts note a particular risk for Aareal Bank, Deutsche Pfandbriefbank and Deutsche Hypothekenbank. All three specialise in financing commercial property deals and are particularly involved in the UK property market.

Three German banks are at risk

According to analysts, it could therefore be dangerous for Aareal Bank, Deutsche Pfandbriefbank and Deutsche Hypothekenbank. Why can it become dangerous for these banks? If a Brexit is concluded without a contractual basis with the EU, which seems increasingly possible after the recent voting defeats of Prime Minister Theresa May. A “hard Brexit” reports Moodys, makes significant dislocations in the UK’s property markets possible. Sharp price declines are expected in this regard.

Investors on the stock market react differently

Different reactions can be observed on the stock exchange from investors. The Deutsche Pfandbriefbank share lost 0.6 per cent in value, while Aareal Bank gained 0.8 per cent. Price pressure has been evident for months, which is also attributed to the Brexit risk. The vote defeats keep the market in suspense and it remains uncertain how the development will ultimately turn out.

Lack of building land: government falls far short of its target for new buildings

The federal government will obviously not reach its target of 375,000 new homes this year. The figure is expected to be around 250,000. This is reported by the industry association BFW after the economic survey among 1600 medium-sized member companies. Housing shortage is one of the big social issues of this time. Although the policy recognized this, ever further obstacles are created in the housing construction. Completed construction would have to increase by 50% per year in order to reach the federal government’s target.

More news from the past few days:

Immobilien News: Manager Magazin: Investment in troubled times – Profit from the real estate boom

There are also new headlines this week from Manager Magazin such as “Investing in troubled times: Profiting from the real estate boom – without buying apartments”. Financial editor of Manager Magazin Mark Böschen advises that real estate investments promise stability, even if the economy is uncertain. As well as “Grand City Properties also wants to buy: Deutsche Wohnen to add around 3000 apartments”. More headlines:

Focus Online reports on the state housing subsidy

This week Focus Online takes a special look at political developments in the property market. The environment minister wants stricter specifications: One million households threatened expensive conversion of chimneys and flues. And it is about state support: a reformed housing premium helps more than the Baukindergeld. More news from Focus Online:

IM Immobilienmanager: Rock and Planworx build open space concept in the Munich area

This week at IM Immobilienmanager, articles include “New Flag leases 10,300 square metres of new logistics building near Ingolstadt” and “Colliers: residential investment division grows”. You can find more news here:

Frankfurter Allgemeine: Lack of building land – Government misses its target for new buildings

There is exciting news this week from the Frankfurter Allgemeine, for example “Lack of building land: Government falls far short of its target for new buildings”. Apparently, the federal government will not reach the set target of 375,000 apartments this year. It is expected that the number will be around 250,000. Housing shortages are one of the great social issues of the day. Other topics include “Rents are rising rapidly: hardly any free apartments in Frankfurt”. More news from the past days:

The Handelsblatt reports about recycling against rising construction costs

In contrast, Handelsblatt reports this week on “Economic worries depress sentiment in the real estate sector” and “How recycling can help against rising construction costs”. More headlines of the week:

Star: Real estate financing – save 70,000 euros on interest rates

Stern’s blog looks at “Migration: Exodus of families: how the housing shortage is changing cities”. Where is the trend going, into the city or is rural life more appealing? The Institute of the German Economy in Cologne took a closer look at migration in Germany. Other topics are “Real estate financing: How to save 70,000 euros when buying a house, just on the interest. And “Bestellerprinzip: brokerage costs when buying a house: will real estate become cheaper due to these changes. Here information about the news:

Housing is in short supply: inexpensive apartments not easy to find

Especially in metropolitan areas and large cities it is not easy to find housing. Especially for families always a big challenge. Here is a report from the WDR about the difficult situation of the need for housing.

Haufe reports on increased subsidies for affordable housing in Bavaria

New from Haufe this week includes “Bavaria increases funding for affordable housing”. For the promotion of affordable housing, the Bavarian state government is to budget an additional 1.7 billion euros for the 2019/2020 double budget. The municipal housing promotion program will be extended until 2025. We continue with the topic “The WEG is not liable for delayed or defective renovation”. More real estate news for tenants, buyers and sellers:

T-Online: Real estate financing – The five most common mistakes with a building loan

This week, T-Online has topics such as “New regulation planned – SPD: Landlords should bear property tax alone” and “Affordable rent – Seven tips on how you can still find a cheap apartment”. It is not easy to find a cheap apartment. In the search for a cheap apartment, not only the equipment and location play a role. Here are tips to reflect well on the situation and find new ways. Other new topics of the week:

Süddeutsche Zeitung: What to do if a prospective tenant does not speak sufficient German

This week’s blog of the Süddeutsche Zeitung is about the following topics: “When words fail”: What to do when a prospective tenant does not speak enough German? In seminars you can learn real estate English. “Moscow’s gold “, the Russian state and oligarchs are hiding money in London, the members of parliament do not want to accept this any longer. “New building area in Moosen”. A resolution of the local council was passed for another building area in Moosen. Updates and news from the blog:

Bundesanzeiger: Where have property prices risen particularly sharply?

This week, among other things, the Federal Gazette is about the topic “Where prices have risen particularly sharply”. A house purchase was in recent years in the vast majority of cases a good deal. Not only in the cities but also away shows a new IW study. Even small towns such as Wolfsburg and Ratingen can be pleased about a strong increase in value. There are interesting facts on the topic of “The new urban exodus”. New headlines and trends here:

  • The new urban exodus
  • Where prices have risen particularly sharply
  • ZIA demands: A European approach to climate policy

Housing shortage in Bavaria: What can one still afford?

The real estate and rental prices have been rising for years. Munich is a good example that people often search for years without success for a new place to live. Who can still afford good housing? What can be done? Here is a report from BR about the difficult situation in Bavaria, which is exemplary for many urban situations. Tougher stance against holiday rental portal Airbnb

New articles and posts from this week include “Lompscher wants to take tougher action against holiday home portals”. Private homesharers must register with the authorities. Urban Development Senator Katrin Lompscher announces a tougher approach against Airbnb to comply with a registration requirement. The Administrative Court in Munich had ordered Airbnb to provide information about its hosts. And more topics like “Fewer forced evictions in Berlin”. More news of the week:

Immobilien Zeitung: Investors love offices above all

This week, Immobilien Zeitung has interesting topics such as “Residential projects on the decline, offices on the rise” and “Investors love offices above all” in the magazine. The posts and more tips can be found here:

Mirror: Stiftung Warentest on real estate loans – wrong choice can cost a lot of money

Spiegel reports this week on “Controversial group: Deutsche Wohnen buys almost 3,000 more properties” and “Real estate market before Brexit: London’s luxury towers are shaking”. Furthermore, the Stiftung Warentest is reported on the topic of real estate loans. Choosing the wrong bank can cost €70,000. Stiftung Warentest reported on the terms of common financing models in its new issue of Finanztest magazine: More news from this week: