German banks throttled real estate loans – with exceptions

Some financiers even expanded their portfolios. This is the result of a study by the real estate service provider JLL, into which Bloomberg News had an insight in advance. Accordingly, the new business in commercial real estate financing in Germany was around seven percent below the value of 2023 with a total of 29 billion euros.

The minus was significantly smaller than in the previous year. According to the data, the data was more clear against the trend in 2024 at Dekabank, Aareal Bank and Helaba. Most of the twelve banks want to keep new business stable this year.

The past year « marked a turning point for the financing market for commercial properties in Germany, » said JLL.

The European Central Bank sent the first signals for a possible turning point over the course of the year, which led to a noticeable relaxation on the financing market. « With careful optimism, investors and financiers looked into the future. »

Focus on objects compliant

According to JLL thanks to their robust fundamental data, logistics and residential properties continues to have proven to be a preferred asset class for lenders. The office in -line market saw the first signs of a revival – but with « clear focus on objects compliant, » it said.

In the two years before, the interest had climbed heavily. This had led to increasing financing costs and falling demand.

Commercial real estate in particular is particularly lost in value. Many banks had to form high risk priority, which made them very careful in the meantime. However, this phase seems to end.

Classic banks adjusted their books

Also in the German real estate financing index (DIFI) raised by JLL, a clearer upward movement had been used last year. In the first quarter of 2025, the barometer again lost 8.4 points compared to the previous quarter, but was able to defend a position in the plus area with a final score of 5.2 points.

The DIFI determined with the Hamburg World Economic Institute (HWWI) depicts the assessments of real estate financiers. These are asked quarterly about the situation on the credit market in the past six months and the expected development in the next six months.

While classic banks recently adjusted their books and optimized risk positions, alternative lenders also sensed their chance, according to JLL. As a flexible partner for refinancing, they would have presented themselves and offered investors the opportunity to restructure their commitment – « a trend that could shift the balance of power on the credit market », JLL continued in the study.