Mortgage Banks in Germany - Market Research Report (2014-2029)
Frankfurt, Germany
Last Updated: February 2024
WZ K64.19dDERevenue
€6.5bn
Past 5-Year Growth
Profit
€XXX.Xm
Employees
5,723
Businesses
8
Wages
€XXX.Xm
Mortgage Banks in Germany industry analysis
In the last five years, the mortgage lending sector has seen negative growth. During this period, industry turnover fell by an average of 3.8% per year, meaning that it is expected to amount to 6.5 billion euros in 2024. This nevertheless corresponds to an increase of 3.1% compared to the previous year. As in all sectors dedicated to the provision of financial services, industry turnover, which in this sector is made up of interest and commission income, was negatively impacted by the low level of interest rates. However, the mortgage banks were able to hold their own comparatively well on the market thanks to their favourable refinancing options. Thanks to their comparatively low default risk, Pfandbriefe have become increasingly popular with institutional investors such as insurers in recent years.Industry sales in 2024 will be influenced by the recent increases in the key interest rate by the European Central Bank (ECB). The sector can also build on the high demand for real estate in Germany, which is primarily based on ongoing urbanisation and positive economic growth. The ECB resumed its bond-buying programme in 2020 and expanded it during the coronavirus crisis, allowing real estate banks to refinance themselves at favourable conditions. At the same time, the price of Pfandbriefe has risen thanks to the increased demand for them, which has had a positive impact on this sector. Competition in the market for property loans will remain strong in 2024, meaning that price competition is likely to intensify in the current year.IBISWorld expects industry turnover to increase by an average of 3.4% annually over the next five years, so that it is likely to amount to 7.7 billion euros in 2029. Interest income in particular is expected to increase due to rising interest rates on the capital markets. However, commission income is likely to fall over the next five years as price competition continues to intensify. The search for ways to increase efficiency is likely to lead to an increased reduction in the number of employees.
Trends and Insights
- The demand for ship financing has recently been low. Shipping companies have been struggling with falling freight rates for years, which has led to a sharp drop in demand for new ships and an increase in loan defaults in this segment.
- Mortgage Pfandbriefe are the most important product group for mortgage credit institutions, closely followed by public Pfandbriefe. Ship and aircraft Pfandbriefe, on the other hand, are of secondary importance.
- Most of the branches of the mortgage banks are located in the Central region. Within the region, there are the most branches in Hesse and North Rhine-Westphalia. In Hesse, most of the branch offices are located in the financial centre of Frankfurt am Main.
- There is fierce competition in the sector. Digitalisation makes it easy to compare the terms and conditions of different banks, which creates strong pressure on prices and the interest rates charged.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 3.8 % over the past five years, to reach an estimated €6.5bn in 2024.
Trends and Insights
Real estate credit institutions are credit institutions that mainly issue real and municipal loans
- A mortgage gives the creditor a lien on the property acquired by the debtor. As a result, the conditions of the loan no longer depend solely on the debtor's creditworthiness, but also on the risks and potential returns of the property.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
The industry should benefit from high interest rates and new sales markets
- The growth in turnover is due to rising interest rates on the capital markets, which also increases the banks' interest income.
Biggest companies in the Mortgage Banks in Germany
| Company | Market Share (%)
2024 | Revenue (€m)
2024 |
|---|---|---|
DZ Hyp AG | 1,877.8 | |
Deutsche Pfandbriefbank AG | 1,787.1 | |
Aareal Bank AG | 842.8 |
To view the market share and analysis for all 6 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Mortgage Pfandbriefe, Public Pfandbriefe and Ship mortgage bonds. Mortgage Pfandbriefe is the largest segment of the Mortgage Banks in Germany.
Trends and Insights
Mortgage Pfandbriefe are the largest product group of mortgage lending institutions in terms of their share of turnover
- Mortgage Pfandbriefe are used by mortgage credit institutions to cover their capital requirements for financing property loans. The bank can lend up to 60% of the property value so that the loan meets the criteria for securitisation into a mortgage bond.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Commercial Banks in Germany
- Savings Banks in Germany
- Building Societies in Germany
Complementors
- Cooperatives in Germany
International industries
- Global Commercial Banks
- Commercial Banking in the US
- Credit Unions and Building Societies in Australia
- Banks in the UK
Table of Contents
About this industry
Industry definition
Real estate credit institutions mainly deal with issuing loans that are secured by mortgages. Mortgages on real estate, ships or aeroplanes usually serve as collateral for these so-called real loans. In addition, the institutions in the sector participate in the financing of public authorities by granting municipal loans. Pfandbriefe are usually issued for refinancing purposes.
What's included in this industry?
Mortgage PfandbriefePublic PfandbriefeShip mortgage bondsAircraft mortgage bondsCompanies
DZ Hyp AGDeutsche Pfandbriefbank AGAareal Bank AGPurchase this report to view all 6 major companies in this industry.
Related Terms
DEPOSIT BANKBOND PURCHASE PROGRAMMEMUNICIPAL CREDITTERRITORIAL AUTHORITYIndustry Code
WZ 64.19.4 - Mortgage Banks in Germany
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
The demand for ship financing has recently been low. Shipping companies have been struggling with falling freight rates for years, which has led to a sharp drop in demand for...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Mortgage Pfandbriefe are the most important product group for mortgage credit institutions, closely followed by public Pfandbriefe. Ship and aircraft Pfandbriefe, on the othe...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Most of the branches of the mortgage banks are located in the Central region. Within the region, there are the most branches in Hesse and North Rhine-Westphalia. In Hesse, mo...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
There is fierce competition in the sector. Digitalisation makes it easy to compare the terms and conditions of different banks, which creates strong pressure on prices and th...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
DZ Hyp AG has the highest market share in the industry and is one of the leading real estate and Pfandbrief banks in Germany. DZ Hyp is driving forward the digitalisation of ...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of DZ Hyp AG's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Deutsche Pfandbriefbank AG's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Aareal Bank AG's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 3 additional companies
Detailed analysis
- Description and key data for DZ Hyp AG, and factors influencing its performance in the industry
- Description and key data for Deutsche Pfandbriefbank AG, and factors influencing its performance in the industry
- Description and key data for Aareal Bank AG, and factors influencing its performance in the industry
- Description, key data and performance trends for 3 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The German Banking Act creates the legal framework for mortgage credit institutions. In order to be able to issue Pfandbriefe, a company must, among other things, have a mini...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
The profit depends on the level of the base rate. The increase in the base rate led to higher earnings, which had a positive effect on sales, but also to higher interest rate...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Germany include:
- German Federal Statistics Office (Destatis)
- European Statistics Office (Eurostat)
- United Nations Comtrade
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Mortgage Banks industry in Germany in 2024?
The market size of the Mortgage Banks industry in Germany is €6.5bn in 2024.
How many businesses are there in the Mortgage Banks in Germany industry in 2024?
There are 8 businesses in the Mortgage Banks industry in Germany, which has declined at a CAGR of 4.4 % between 2019 and 2024.
Has the Mortgage Banks industry in Germany grown or declined over the past 5 years?
The market size of the Mortgage Banks industry in Germany has been declining at a CAGR of 3.8 % between 2019 and 2024.
What is the forecast growth of the Mortgage Banks industry in Germany over the next 5 years?
Over the next five years, the Mortgage Banks industry in Germany is expected to grow.
What are the biggest companies in the Mortgage Banks market in Germany?
The biggest companies operating in the Mortgage Banks market in Germany are DZ Hyp AG, Deutsche Pfandbriefbank AG and Aareal Bank AG
What does the Mortgage Banks in Germany include?
Mortgage Pfandbriefe and Public Pfandbriefe are part of the Mortgage Banks industry.
Which companies have the highest market share in the Mortgage Banks in Germany?
The company holding the most market share in Germany is DZ Hyp AG.
How competitive is the Mortgage Banks industry in Germany?
The level of competition is high and increasing in the Mortgage Banks industry in Germany.
