Home equity records solid growth despite challenging market environment

Heimkapital, a specialist in partial real estate sales, successfully acquired new properties worth 175 million euros last year. A solid basis for further growth in 2024.

Munich, January 30, 2024 - In the midst of a challenging economic environment, characterized by six interest rate hikes by the European Central Bank and a volatile real estate market with falling market values of existing properties, Heimkapital, a real estate platform from Munich, recorded stable growth in 2023.

175 million acquisition in 2023

As a provider of partial real estate sales, Heimkapital acquired properties worth €175 million last year. The focus on efficiency and process optimization enabled Heimkapital to increase its sales compared to the previous year.

The challenges of 2023 were reflected in a shift in customer interest, which increasingly focused on energy-efficient refurbishment measures for the company's own properties. Heimkapital responded to this development with new value-added services, including financial subsidies, assistance in selecting federal funding programs and arranging contacts with partner tradespeople.

Heimkapital was founded in 2019 and offers innovative financial products in the real estate sector. The company is known for its partial property sale, which allows customers aged 55 and over to sell part of their property in return for an immediate payout. The previous owner remains the main owner, while Heimkapital becomes a silent partner.

Target of €500 million AuM in 2024

The company anticipates an optimistic picture on the market in 2024. The 10-year swap rate, a relevant interest rate for refinancing partial purchases, has fallen significantly since October 2023. This positive development enables Heimkapital to offer attractive conditions for its customers. In addition, property prices are stabilizing, which is even leading to slight increases in certain regions. This view is countered by the current insolvency of the Evergrande Real Estate Group. The general performance of REITs and the associated NAREIT index also leaves a lot to be desired from an investor's perspective.

With the emerging positive developments on the market and our planned innovations for 2024, we are confident that we will continue to be able to offer our clients attractive products"

Julia Miller, co-founder and Managing Director of Heimkapital

In view of these developments, Heimkapital is planning to increase its partial acquisitions of properties in the coming months and is expected to exceed the half a billion euro mark in assets under management (AuM) on a sustained basis. Another focus for 2024 is the planned launch of a new product in the equity release area, which enables models for releasing capital from one's own property without leaving it.

We already reported on a €300 million financing round for the company at the beginning of 2022, as well as further financing in September 2022.