Rents and purchase prices for individual properties as well as their value-influencing factors are systematically collected in the vdp transaction database (vdp-Transaktionsdatenbank). On the basis of these data, hedonic methods are applied to construct property indexes that reflect purely the price movement of a particular real estate market. In February 2010, the vdp price index for owner occupied housing has been presented to the public.

With effect from 1 July 2009, work on the transaction database was transferred from the vdp to the newly established vdpResearch. This is meant to ensure comprehensive evaluations and analyses on an ongoing basis and to provide these data to participants in the transaction database.

Up until the first quarter of 2011, 21 Pfandbrief Banks have submitted information about ca. 630,000 properties to the database. Since 2003, the vdp transaction database has provided an overview of the price trend on the German property market, for both Germany as a whole and for the individual regional and other sub-markets for specific property types. Given the extremely diverse nature of real estate, hedonic methods are applied which filter out the quality differences of the individual properties included in the database and purely measure the price trend.

The following figures show the price trend for single family houses, condominiums and - as an aggregate of both property types - for owner occupied housing in Germany.

vdp Price Index for Single Family Houses in Germany

vdp Price Index for Condominiums in Germany

vdp Price Index for Owner Occupied Housing in Germany

Based on 2003, the figures show an average price increase of 9.3 % for single-family houses and 9.1 % for condominiums over the period as a whole. Overall, both time series indicate a slight increase which has turned 2009 into a sideways trend. Since midyear 2010, the series show a moderate upturn again. The price index for owner occupied housing in total increased by 9.3 % within the whole period.

Further information about the vdp-transaction databank and the statistical evaluation can be found in the vdp-brochure “Real Estate Banking – Committed to Professionalism – Facts and Figures”, expenditures 2007/2008 (p. 50 ff), 2008/2009 (p. 58 ff) and 2009/2010 (p. 42 ff) and in our Annual Report 2010 (p. 48 f) (please see vdp press release from 16.05.2011).

In order to illustrate the relationships between the housing market, residential property finance and overall economic developments, the Institute of the German Economy in Cologne (IW Köln) compiled a study on behalf of the vdp.

Purpose of the study

The study analyzes the interdependencies that exist, and looks in particular at why Germany has a comparatively large rental housing market.

Findings

The IW Köln found that the comparatively low home ownership ratio in Germany is not a reflection of the efficiency of the rental housing market.

Instead, access to residential use ought to serve as a gauge for assessing the efficiency of the housing market. In Germany, this access is given through both the rental housing market and the home ownership market. In terms of residential property finance, too, the study shows that Germany is in good shape thanks to the competitive situation between the two markets.

The vdp has published the findings of the study as vol. 26 of its series of papers (Schriftenreihe Band 26), which is available from the vdp’s Order center.

Volume 26 of the vdp series of papers (Schriftenreihe), which is available from the  Order center, provides an account of the results of the vdp survey on the structure of home ownership finance.

The vdp conducts this survey every three years to arrive at the most important data on total borrowings, investment costs, debt charge or the affordability of home ownership over time.

In addition to the vdp member institutions, Commerzbank and Dresdner Bank agreed to take part in the 2006 survey.