The mortgage market in the eurozone has shown signs of recovery after a prolonged period of decline. According to a banking loans survey by the European Central Bank, household demand for loans to purchase homes increased by 16% in the second quarter of 2024, marking the first rise since the first quarter of 2022. This increase, though slightly below banks’ expectations, reflects an improvement in the real estate market outlook.

A Favorable Context for Housing Cooperatives

Housing cooperatives are uniquely positioned to take advantage of this upturn in mortgage demand. With improved accessibility to housing, especially in countries like Germany, where price drops have been significant, there is an opportunity for cooperatives to attract new members interested in acquiring housing collectively.

Benefits for Cooperative Members

Cooperative members can benefit in various ways in this context of mortgage recovery:

Accessible Financing: With the increase in loan demand and a relaxation of lending criteria for home purchases, cooperatives can access better financing conditions for their projects.

Price Stability: The improved outlook for the real estate market can contribute to greater price stability, facilitating the planning and execution of new housing projects.

The ECB anticipates an even stronger increase in demand for housing loans in the third quarter of 2024, with an expectation of 26%. This positive trend represents a golden opportunity for housing cooperatives to establish themselves as a viable and attractive alternative in the real estate market.

At QHâbitat, we are committed to supporting housing cooperatives in this process, offering specialized services that facilitate the management of procedures and ensure the best financing conditions for our clients. If you want to learn more about how we can help you, do not hesitate to contact us.