Chatting Away About the Real Estate Landscape in Germany 🇩🇪
German private bank's leading figure, Mr., under scrutiny for financial mismanagement
Meeting the Man Himself – Marcus Lingel of Merkur Privatbank 🤝
Börse Online: Alright, Mr. Lingel, give us your two cents on the current state of the German real estate market, shall we?
Marcus Lingel: Well, buddy, I reckon the worst's behind us, and the market's about to flip. You see, during the real estate crash, our new construction business took a tumble – from a whopping 1.6 billion euros in '22 to 840 million in '23 and a lowly 653 million in '24. But fret not, in '25, things'll probably still be tough 'til the end, but we're anticipating a significant rebound post-'26.
So, what's the evidence, Marcus?
The sales of those project developers have been improving since Q4 '24, and people are hungry for mortgage financing. Another key tell is the crazy rent increases we've seen in new builds. However, the demand for project financing won't pick up then and there. So, you can expect our new business to stay low key in '25.
Our bank's managed to weather the storm rather well, with only eight of around 250 projects going south so far, and all risks handled accordingly. Oh, and the crisis among project developers should peak this very year, but we remain optimistic about our future. We're about as close to our customers as a bank can get!
Which cities have been the hardest hit, then?
Out of the Big Seven, Munich's been getting the raw end of the deal. On the other hand, Stuttgart and Berlin have fared relatively better.
Sounds like expansion opportunities to me! Say, Berlin, right? We're checking it out, and if we spot a good opportunity, we'll make our move quicker than you can say "Flachdach"! Diversifying our portfolio regionally would be nice to have in the mix.
What's the appeal of Berlin for ya, Marcus? It's our chance to grow beyond our current regions and shake things up, fam. The Berlin market's known for being positively, delightfully dynamic, after all.
Now, a little background on the man, the myth, the Marcus Lingel!
He's the big cheese at Merkur Privatbank in Munich, having joined the bank in '00 and become managing partner in '05. In '08, he took the reins as Chairman of the Board, and now he proudly owns over 20% of the bank. Under his leadership, Merkur Privatbank's been on an impressive growth spree for the last 16 years. With a team of around 500 now, the bank's made some significant strides. They bagged important parts of Bank Schilling & Co in '19 and posted an operating result of 29.5 million euros in '24 – that's a 1 cent increase in earnings per share from the previous year!
Wondering what's going down in the real estate market in general? Check out this article: Residential Properties Making a Comeback
[1] Real Estate Stats for Berlin (Q1 '25) – Source[2] Real Estate Stats for Big Seven (Q1 '25) – Source[3] Real Estate Stats Across Germany (Q1 '25) – Source[4] Office Market Trends in Berlin (Q1 '25) – Source
- Marcus Lingel stated that the German real estate market is expected to rebound significantly after 2026, with an increase in mortgage financing demand and rising rents in new builds, but the new construction business is anticipated to remain low key in 2025.
- In terms of investment opportunities, Lingel mentioned that they are exploring expansion in Berlin, as it presents a dynamic market with growth potential, allowing Merkur Privatbank to diversify its portfolio regionally.
