by the possibility to make gifts of up to EUR 100,000 free of tax if the recipient used the money
to repay the mortgage on their own home. The historically low level of interest payable on
savings was another factor in favour of repayment.
Homes are now more affordable, due to the fall in prices in recent years and the historically low
level of mortgage interest rates. This led to increased transaction volume in housing in 2014
and a small increase in the average house price. The recovery in prices is however as yet
extremely gradual. The reduction of the limit for a National Mortgage Guarantee (NHG) from
EUR 290,000 to EUR 265,000 on 1 July 2014 had a small negative effect on prices.
The development of prices was also negatively affected by the stricter acceptance standards for
mortgages.
BPD
BPD realises residential and living environments in the Netherlands, France and Germany.
The positive developments in the housing market were visible in the sales of new homes. In the
Netherlands, BPD achieved 85% more residential property transactions than in 2013, with the total
number of residential property transactions reaching 3,985 (2,160). It would appear that the low
point in the number of residential property transactions in the Netherlands is now behind us.
Number of residential property
transactions
at year-end 2014
The Netherlands
France
Germany
57%
27%
16%
The housing market in Germany also benefited from the economic growth. Additionally, there
was a healthy labour market and strong domestic demand in Germany. The number of
transactions in Germany rose to 1,126 (930). In France, economic growth has not yet
materialised and there were specific uncertainties in the housing market regarding social letting
and investment letting. The number of transactions in France declined to 1,939 (2,036).
Apart from in the Netherlands, France and Germany, some residential property transactions
were effected in other countries, bringing the total number of transactions completed by BPD
in 2014 to 7,064 (5,169). BPD realised a positive result in 2014. Impairments on land positions
and land operations were limited.
FGH Bank
FGH Bank is engaged in the funding of commercial real estate, and operates in the offices,
retail and commercial space markets and the real estate investment market, mainly in the
Netherlands. In addition to financing investments commercial real estate, FGH Bank also funds
new housing, renovation and transformation projects.
Focal Rabobanks use FGH Bank as a centre of knowledge and expertise for real estate finance
issues. It supports the banks by analysing the existing real estate finance portfolio and
applications for real estate finance and carries out market and location studies. The FGH Rabo
Valuation Desk assists the banks with valuations. FGH Bank also plays an important part in the
management of real estate investments with local Rabobanks. It also manages real estate
finance arranged with the Rabobank Group. The loan portfolio of FGH Bank declined to
EUR 16.7 (18.4) billion in 2014, mainly as a result of the settlement of a number of items.
Loan portfolio of FGH Bank
in billions of euros
Illll
31-12 31-12 31-12 31-12 31-12
2010 2011 2012 2013 2014
FGH Bank to be integrated into Rabobank.
In early 2015 it was announced that FGH Bank would be integrated into Rabobank as the
expertise centre for the funding of commercial real estate. This integration is part of the strategy
and cultural change at Rabobank designed to the formation of'One Rabobank'. The aim of the
integration is to be able to organise the provision of services to our customers to be more
efficient, effective and straightforward. Rabobank continues to be an important player in the
field of commercial real estate.
77 Rock-solid bank: performance
