Immobilienfinanzierung und Basel III

Basel III is a set of international banking regulations designed to improve financial stability by increasing capital requirements for banks. It has significant implications for the real estate financing industry by impacting how banks assess risk and lend to property investors.

Despite Basel III regulations, the majority of professionals in the real estate sector anticipate a continued demand for mortgage products, signaling a persistent need for financing in the industry.

Banks are predicted to increase the issuance of short-term mortgages, requiring faster capital repayments by borrowers, likely driven by the need to meet Basel III regulations.

Uncertainty in the financial markets after the 2008 crisis led to a surge in demand for housing, as individuals sought safe haven assets and stable investments.

Residential properties gained popularity as a safe and reliable investment option, drawing in investors seeking to diversify their portfolios and hedge against financial risks.

Despite rising construction activity, the availability of new housing units couldn't keep up with the surge in demand, especially in urban areas with high population density and limited space.

Escalating rents and home prices have created affordability issues, particularly for lower-income households struggling to secure housing in a competitive market.

Shifting demographics impact housing demand: the growing elderly population has different needs and preferences for their living spaces, leading to increased demand for age-appropriate housing.

As the older population expands, there's a need to retrofit and adapt existing housing stock to cater to the needs of seniors, ensuring accessibility and functional living environments.

Changes in lifestyles, such as single-person households and smaller families, demand a shift in the types of housing offered: smaller, more efficient housing units are increasingly in demand.

The need for new housing construction is growing in areas experiencing population and economic expansion, driven by rising rents and home prices, highlighting the mismatch between current housing supply and market demands.

In 2019, Germany's Constitutional Court ruled that the previous system for evaluating property values, established in 1964, was unconstitutional and in need of reform.

A new system for calculating property taxes must be implemented by the end of 2019 with an expected effective date in 2025, replacing the existing system deemed outdated and unfair.

When selling real estate, the seller must hold the property for at least 10 years to avoid capital gains tax on the sale, discouraging short-term speculation and encouraging long-term ownership.

Individuals who live in their sold properties for the entire duration can avoid capital gains tax, encouraging homeowners who sell their primary residences to do so with tax benefits.

Companies selling property face a different tax structure: they must pay capital gains tax regardless of how long they have owned the property, reflecting the tax obligations of businesses.

German social policy encompasses traditional social insurance systems such as health, old-age pension, and accident insurance, creating safety nets for individuals and families.

Social policy also includes measures designed to redistribute income and support families, such as subsidies for childcare, parental leave, and housing assistance, to help disadvantaged groups.

The implementation of social policies in Germany involves collaboration and responsibility shared between the federal government, state governments, local authorities, and affiliated organizations.

The 1953 pension reform brought a dynamic pension scheme, linking pension payments to wage growth, ensuring pensions keep pace with rising costs of living.

The introduction of long-term care insurance in 1995 expanded social security benefits to cover the costs of care for people requiring assistance due to illness or disability, increasing social protection.

The 2007/2008 financial crisis led to a surge in demand for real estate as a safe investment option, driving up prices and contributing to a tighter housing market.

Rising incomes and historically low interest rates further encouraged homeownership, creating a strong desire among individuals to purchase properties and build equity.

Despite the strong demand, the supply of housing increased only modestly, creating a mismatch between available units and the growing need for living spaces, leading to rising rents and housing shortages in certain regions.

By 2018, Germany had roughly 42 million housing units available, providing a sizable stock of housing units within the country, but still facing challenges like limited affordability and regional variations.

Internet-based tools and resources are commonly used for conducting market research, providing potential buyers with access to information on property values, sales trends, and market conditions.

Property valuations or appraisals consider factors such as the initial purchase price, any renovations or upgrades, and current market conditions, providing a comprehensive assessment of the property's worth.

Price adjustments, such as markups or discounts, may be based on subjective perceptions of market trends, taking into account local, regional, and national market dynamics that impact property values.

Economic conditions, such as tax policies affecting real estate transactions and monetary policies implemented by the central bank, play a crucial role in shaping the real estate market and investment decisions.

Global events like the 2007/2008 financial crisis and the 2020 COVID-19 pandemic had profound effects on global financial markets, disrupting financial flows and creating uncertainties that impacted real estate markets around the world.

During periods of crisis, credit markets often tighten, limiting access to financing for real estate transactions and creating economic uncertainty that can dampen demand and affect the performance of housing and real estate markets.

The inheritance tax exemption depends on the relationship between the inheritor and the deceased, with higher exemptions for closer relatives, reflecting the social value of family bonds.

Inheritance tax revenues in 2020 totaled approximately 8.6 billion euros, representing roughly 1 percent of total tax revenue collected in Germany, highlighting its relatively modest contribution to overall tax revenue.

Since 2010, residential real estate prices have consistently risen, driven by multiple factors including demand, low interest rates, and limited supply, escalating the cost of homeownership and making affordability a growing concern.

In 2021, residential real estate prices increased by 10.9% compared to the previous year, highlighting the rapid pace of price appreciation in recent times.

In major metropolitan areas, the price increase for single-family homes was even more pronounced, reaching 14.7% in 2021, reflecting the strong attractiveness of these areas and increasing demand for single-family housing.

Operating costs that don't involve energy consumption, such as garbage collection, water, and wastewater, represent a significant portion of housing costs, averaging between 2.17 and 2.88 euros per square meter per month.

Energy prices have exhibited a sharp rise between 2000 and 2021, escalating by 128%, significantly impacting household heating expenses and contributing to overall housing costs.

In 2020, approximately 306,000 new housing units were completed in Germany, representing a significant number of new homes entering the market, but still falling short of the estimated demand.

The annual need for new housing construction in Germany could be as high as 350,000 units, underscoring the ongoing shortage of housing and the need to significantly increase construction activity to meet demand.

Despite the need, in 2020, there was a shortfall of 50,000 new housing units, indicating a gap between desired construction activity and actual building rates, likely due to factors like labor shortages and bureaucratic hurdles.

Demographically driven changes suggest that the German population will decline to approximately 81.2 million people by 2040, impacting housing demand and creating challenges for achieving a balanced and sustainable housing market.

By 2040, the number of single-person households is projected to increase to 42.5 million, reflecting changing family structures and demographic trends, influencing the demand for smaller and more adaptable housing units.

Housing cooperatives, also known as building societies, play a significant role in the German housing market, managing over two million dwellings and representing the interests of over three million members, providing affordable and community-oriented housing alternatives.