Interim Financial Report
as at 30 June 2023

Dear readers,
Dear friends of Berlin Hyp,

Germany in the summer of 2023: the economy is stagnating and the country and its businesses are falling behind in the international competitive field. The energy transition is proceeding more slowly than planned, and public infrastructure problems that were not properly addressed over a long period of time are now becoming increasingly visible and noticeable. The optimistic mood that accompanied the launch of the current government coalition appears to have disappeared for good.

The mood is sombre in the real estate market as well. Interest rate hikes and uncertainties regarding how properties will develop or perform in future seem to have put transaction markets on hold for the time being. The sharp decline in building permit approvals and apartment completions means policy-makers can now only dream of achieving the housing targets that were set only a couple of years ago. Poorly presented legislative initiatives, such as the proposal to require the installation of environmentally friendly heating systems, have only served to unsettle tenants, apartment and building owners and businesses in general.