DGAP-News

Hypoport AG: Brexit - demand for property will continue to rise

DGAP-News: Hypoport AG / Key word(s): Statement
Hypoport AG: Brexit - demand for property will continue to rise

28.06.2016 / 11:50
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Press release

Hypoport AG expects Brexit to have a positive impact on its business in the
medium term

Brexit: demand for property will continue to rise

Berlin, 28 June 2016: In the opinion of the Management Board of Hypoport
AG, the United Kingdom's exit from the European Union will not have a
negative impact on the business models of Hypoport, a provider of
technology-based financial services. It is far more likely that the
anticipated concentration of EU migrant workers in Germany and the flight
to German real estate by unsettled property investors will stimulate the
German lending market.

"Hypoport and our subsidiaries are not directly dependent on the UK,"
explains Ronald Slabke, Chief Executive Officer of Hypoport AG. "Neither
our subsidiary Dr. Klein, our EUROPACE financial marketplace nor other
subsidiaries have business operations in the UK." No direct negative
effects are therefore in prospect. "Like many other experts, we expect
investors to increasingly withdraw from the UK and try their luck in other
economically interesting European markets," adds Slabke. "This should
further push up demand for property, especially in major German cities."

"What's more, EU migrant workers will increasingly head for Germany as
restrictions are expected to be imposed in the UK," believes Hypoport's
Chief Executive Officer. "This will also create more demand for housing -
adding to the already huge level of excess demand." Studies show that
around 400,000 new homes per year are currently required, but only 250,000
or so are being built. "These factors support our mortgage finance
business. And, there are no indicators for a sudden rise in interest rates,
which means conditions for mortgage finance remain excellent."

Slabke also thinks that Brexit will generally be positive for Germany as a
whole: "Although nobody can yet reliably predict all of the consequences of
Brexit, the expected additional investment in Germany as a safe haven is of
course welcome. I also believe that Brexit will be good for Germany in
other respects, at least in the short term. The pressure on the euro is
strengthening the German economy, and the UK's departure gives further
weight to Germany's role as the economic centre of the EU."