The Professionalization of the Housing Sector from the Banks’ Viewpoint

Dr. Edgar Zoller

As a result of the strong growth in interest shown in recent years by international investors in the German property – and in particular, the German residential – market, the valuation of municipal housing stock and the marketability of private housing stock has also undergone considerable change. This market change has also had a distinct impact on private and municipal housing companies and their strategic orientation. Discussions concerning the right strategy for a housing company, the right valuation of its assets as well as the political debate on the (ulti-mately failed) integration of housing companies in REITs legislation have severely unsettled the sector. This also has repercussions for banks wishing to accompany housing companies into the market. The following article seeks to explain how a universal bank like BayernLB, with real estate as its core business and housing companies as a declared target group, assesses the developments its customers are experiencing and the possibilities to be of service to them in that context.