Hypoport SE sees robust growth in mortgage volume

EditorFrank DeMatteo
Published 17/10/2024, 14:08
© Reuters.
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Wednesday: Hypoport SE reported an increase in business volume for the first nine months of 2024, with significant growth in the mortgage finance transactions on its Europace platform. The Real Estate & Mortgage Platforms segment, which includes Europace, Finmas, and Genopace, experienced a 25% year-on-year rise in mortgage transactions, indicating a healthy demand for existing real estate purchases.

The cooperative banks and savings banks associated with Hypoport saw increases in volume of approximately 40% and 50%, respectively. Despite these gains, VALUE AG's valuation volume and REM’s corporate finance business were met with challenging market conditions. Nonetheless, new client acquisitions for the property management platform for the housing industry soared, with growth reported at 41%.

The volume of premiums from insurance portfolios transferred to the SMART INSUR and ePension platforms also saw an upward trend. The mortgage finance business models in the Real Estate & Mortgage Platforms segment were the primary drivers of growth for the Hypoport Group, benefiting from improved market conditions and increased market share.

A notable shift was observed in consumer behavior, with many opting for mortgages with shorter fixed-interest periods to reduce interest expenses, a change from the same period in 2023. This trend comes against the backdrop of a dwindling supply of rental properties and a fall in interest rates compared to the previous year. Despite increased regulation and construction costs leading to lower volumes in housebuilding finance, existing real estate transactions remained strong.

The Financing Platforms segment, which includes the property financing platform by Dr. Klein Wowi, also reported growth, with a 15% increase in the volume of new loans brokered. The Insurance Platforms segment saw a 14% rise in policies migrated to SMART INSUR and a 33% increase in validated policies.

Hypoport SE, based in Lübeck, Germany, operates through three segments: Real Estate & Mortgage Platforms, Insurance Platforms, and Financing Platforms. Its Europace platform is Germany's largest B2B online lending marketplace, linking around 800 partners, including banks, building finance associations, insurers, and financial product distributors. The group's services extend across the credit, housing, and insurance industries, employing over 2,000 staff members. The company's shares are traded on the Frankfurt Stock Exchange's Prime Standard segment.

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