Berlin: According to data from Barkow Consulting, the number of new homeowner loans in Germany more than halved in February compared to the same month last year.

According to the consultancy's most recent report, mortgage lending in the largest economy in the Eurozone fell by a record-breaking 54% on an annual basis. According to the publication,

"The decline in March will be even worse due to a base effect, given the record new business of €32.3 billion in 2022."

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The Dusseldorf-based agency noted that February 2022's €12 billion ($13 billion) total new mortgage business is the lowest since February 2010. It emphasised that "and this does not even take into account house price inflation."

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Germans have been under pressure as a result of the escalating cost of living crisis and the swiftly rising interest rates, with many being forced to abandon their dreams of home ownership, according to Reuters.

According to a recent poll of analysts by the news organisation, the nation's home prices are predicted to decline more drastically than initially anticipated as higher interest rates reduce demand.

German home prices are expected to fall on average by 5.8% this year and 2.5% the following year.

The German Property Federation stated in February that the country's housing shortage was at its worst in 20 years and that fewer new homes are anticipated to be built over the next 12 months.