Ladies and gentlemen, welcome to the webcast results for year 2022 of Hypoport SE. At our customer's request, this conference will be recorded. As a reminder, all participants will be in a listen-only mode. After the presentation, there will be an opportunity to ask questions via the telephone lines. I now hand you over to Ronald Slabke, who will lead you through this conference. Please go ahead.
Yeah, welcome from my side as well. We are looking back at a full year 2022, a turbulent one. As usual, I will go with you through our market environment and the numbers of the segments. I will focus today a little bit more on the market environment because I feel the need to explain more what happened actually, and especially what it means when we're looking forward in the near term and long-term future, and we are in the core talking about the German housing market. Okay, you are aware of this, that Hypoport is present in three industries here in Germany: credit, real estate, and insurance.
You're aware of this, that Hypoport is a network of double-digit numbers of subsidiaries industries, digitalizing them, but with a focus still and or let's say heavy exposure to the German mortgage market. Let's go to the German mortgage market. What actually happened with what influenced the year 2022 in the way it did. You want to understand the German housing market and the German mortgage market. We need to look back more than a decade in the time before 2011, where this market was best described as stable. We had a low number of units finished because of an stable base of inhabitants.
Actually, we expected to shrink in Germany from a number of people living here, households as well. Rents were stable, more or less growing with inflation rate. Real estate prices were stable, more or less growing with inflation rate. Mortgage volume was stable, something around EUR 50 billion per quarter, EUR ±5 billion. It was a pretty boring market when I entered this market more than 20 years ago, and it stayed like this until 2011. Actually, what comes from this time is a heavy regulation of new constructions and the renting market. New constructions because we expected to just focus on modernization and maybe already a little bit energy efficiency at this time.
We wanted to increase the density of our cities, not really building new. When you see Germany, we never had the intention to in the last 20 years, to build a lot of suburbs or something like this, things that you know from the Anglo-Saxon markets. We wanted to increase the density of our cities. In the renting market, because of the huge stability, we regulated it heavily to make sure that, let's say in the end landlords and the renties are fine with a stable situation. What changed in 2011 was the freedom of movement within European Union. An integrated labor market.
Because of the lack of labor of certain level of skills here Germany, since 2011, Germany sees a net inflow of people, hundred thousands every year migrating to Germany net and increasing the number of inhabitants in Germany. From an more or less stable to shrinking economy, the Germany turned to grow. In the first couple of years, we had enough of vacant space in especially the metropolitan areas, which was being occupied. Vacancies were reduced. Slowly, rents and real estate prices started to climb. Especially the prices faster than the rents for a long period of time, you can say until 2021 because of declining interest rates as well.
During this time, the prices in average doubled in Germany, while our mortgage volume in the market grew from EUR 50 billion or from around EUR 50 billion to around EUR 70 billion. The reason for this underperformance of the mortgage market is that not more equity went into it, but less and less transactions were closed. Especially German households missed this opportunity over a period of a decade. There are studies that show that more than 1 million people that you would have expected to buy when you see who bought before 2011, didn't buy after 2011. We had a declining homeownership ratio in Germany during a period of low interest rates because Germans didn't trust in this price increases which they saw in this decade.
Yes, since 2015, institutions like Bundesbank want that prices are inflated and kept families from switching from the renting market to the homeownership market. From today's perspective, a huge disaster for our society. Just to understand, the German mortgage market was not in a booming state until 2021. It was just a slow growth thanks to the huge demand for housing here in Germany. Now we are reaching the year 2022. With this, from the beginning of the year, a high level of an increasing level of inflation. As the market expected, ECB thickened their quantitative easing policy. They stopped buying government bonds and they later started to increase the short-term interest rates.
The market reacted with a sharp increase in long-term interest rates. You can say, from a mortgage perspective, we rose from roughly 1% and below interest rate for a 10-year mortgage to close to 4% in the late summer of last year. 300 basis points up in interest rates. This led in the beginning of the year to a spike in mortgage volume. In the first quarter, we closed more than EUR 80 billion in mortgages. A new record high for Germany because lots of people closed existing financing projects, for building homes, buying homes, or refinanced mortgages which were due in the next couple of months or a year.
In the second quarter, we saw a normalization of this volume. For us, surprising, or for everyone surprising, you could say, after the summer, people didn't come back and the mortgage volume and the data. First the transaction volume, but with this, the mortgage volume in the market tanked to a level unseen before. Today it's easy to explain why this happened before. Because it never happened before, we were all surprised. A core reason is that, let's say, we need to start there that Germans acquire a home or plan to build a home because of a trigger event. I will come back to this later. These trigger events just occur.
Normally it takes a couple of months for a German family after a trigger event to close a deal for a homeownership. During the year 2022, we saw in the beginning because of the sharp rise of interest rate, that people had difficulties to adjust the reality to their dream. Everyone starts in this process with an unfulfillable, not financiable, dream of a home. Because of the sharp rise of interest rates in the first half of the year, people couldn't catch up fast enough with the rising costs and couldn't dilute their dreams as fast as they should have done this.
In the second half of the year, people saw that real estate prices were trickling down, something you could read all the time in the newspapers. The hope of better deals of being able to afford your dream state and interest rate more or less stayed stable on a certain level since summer last year. In the last eight months, you can say, the 10-year interest rate is pretty in the same range all the time. People in the second half of the year waited for the opportunity to buy something cheaper. We saw declining prices by roughly 15% over the time on average. The hope to be able to acquire something which is close to your dream just stayed.
With this, we ended the year 2022. We communicated this already that especially in the last quarter, we saw that we reached a new baseline, you can say. A low level, but then a stable level when we looked on the three months at the end of the year. For now, in this environment, Hypoport performed and let's look in the details of the, let's say, three product areas of the mortgage market, how they developed, to still understand it slightly better, and then I will come to the results, how Hypoport performed in this environment. The sharpest decline during 2022, we saw in new constructions.
You can say that at the end of the year, roughly, only 1/4 of the volume was left from compared to previous year. The building imploded because of high construction prices on one side and this sharp increase in the cost of the interest rate side. No hope of declining prices short-term to be fair. Nobody, not nobody, but only 25% roughly of the people still finance something to build something in the near-term future. This is no surprise in the end. The highest impact had the decline in purchase.
So existing homes to be acquired by someone looking for a new apartment, roughly 50% down from the peak, 30%-40% down from previous year. Here you see this mismatch between what I'm able to afford and what is the current price level, and this is just slowly declining prices of properties. Yeah, it doesn't match still. It would have to decline roughly 1/3 to meet the affordability the people had a year ago. A little bit surprising for us the decline in refinancing.
Yeah, at the beginning of the year, we saw a peak outside of the typical renewing volume because people really used this short-term interest rates, which were sharp, going up to refinance already the future mortgages more than they usually do. It stayed on a pretty low level to the end of the year, and slowly we see that people are waiting pretty long before they really refinance something. They postpone this decision as long as possible, hoping that the interest rates do come down. As well, a little bit surprising, modernization.
Energy efficiency, decarbonization is on a pretty low level in the second half of 2022, even when there is more and more political pressure to do this, even when there are some incentives and subsidies to do it. People hesitate to invest in their properties. Something which is not in line with the general agenda that we see right now. This is the development of this, let's say four segments of the market. Four core segments of the market. Now we get to the area of how Hypoport and the segments performed. We start this usually with the credit platform. In the center, Europace with its mortgage business, but as well, there's a personal loan business on Europace.
Besides Europace, there's a fundingport of Van Capital in this segment with the business in corporate loans. In the mortgage business, Europace lost 8% of its transaction volume. We were close to EUR 100 billion a year ago, ended up with EUR 90 billion of mortgages and the building society saving products last year. This looks like that we just went with the market because market was down roughly 9% as well. Be aware that Bundesbank, the market reference of Bundesbank is de-delayed. These are delayed numbers, delayed figures. They need to be already in the balance sheets of the banks. So they saw this decline a couple of months after we saw the decline in the transaction volume already.
While we saw a stabilization at the end of the year, Bundesbank is still going down, especially when you see the January numbers. With this in mind, we are absolutely certain that we gained market share last year, double-digit. One reference point which we have is Interhyp as the largest German mortgage broker, who reported its numbers and was down 15% last year in based on volume. This 15% is in our perspective, is still a market share gain because Interhyp usually as we gain market share, we expect the market in reality to be down roughly 20% compared to Interhyp and our numbers.
This said, even in this special environment, we see a market share gain, and we see this in all four segments of the market. Pretty visible in the cooperative banking area, +3% in the volume still. We don't know how much the cooperative banking sector lost in market share or in volume last year, but we can expect an outperformance of minimum of 25% of this number. Little bit more difficult with the savings banks, -7%. What we see and feel in the market is that they lost market share in 2022. They underperformed the market. When the market hit -20%, they may have ended up with -25%, -30%.
In relative, we gained market shares in this group, and about this we are certain. Private banks were pretty stable from the market share last year. We were slightly growing, everything in line. Brokers, in the first half of a year lost some market share because in the time of lots of volume, banks prioritized in their credit decision process their own branches and mortgage brokers lost some market share. In the second half of the year, in this tough market environment, branch networks of banks heavily underperformed the mortgage brokers. Even if the mortgage brokers lost significant in volume, bank branches lost much more. We see this on the Europace platform as well.
There's a difference of roughly 20% in performance between bank branches and brokers using Europace. This is just an indication how heavily traditional operated bank branches were hit, which are not even users then of Europace. So from a Europace perspective, the good news is that our stronghold, the mortgage brokers in this new market environment of higher interest rates and consumers who need to compare a lot and find the best deal are growing and expanding their market share because this, there's a natural way for Europace to grow. Beside the fact that Europace will keep gaining market share in the cooperative and savings banks as well. Done. Next product area, personal loan business, + 99% in a more or less stable market environment.
Our focus on B2B and white label personal loan business for banks and advisors is paying back. It's more and more needed to have a risk quartile and the price quartile when you're operating in this competitive market environment where consumers tend to compare as well, find the best deal online. If you want to be competitive in this unit and you have a traditional way to access consumers, you need Europace as well. Nice development last year is the rollout of GENOPACE in the cooperative banking sector. Beside the private banks, now the next group is adapting to an more open approach for their client base.
With the successful initial launch last year, we expect a further growth here in 2023. The last product area in the credit platform is corporate loans and financial advising, especially regarding subsidies here in Germany. Still under the old government, we saw great subsidy programs for German Mittelstand, especially climate related and energy efficiency related. This leaded to a lot of business for REM Capital at the second half of 2021 and first half of 2022. The new government is now in place for almost 15 months. Still there are no new subsidy programs.
Everything what they brought up in this first year of their being responsible for this area is still, let's say, small budget. We expect over the period of up till the next voting on the federal levels during now three and a half year. That they need to live up to the expectations and the ministry for business is run by the Green Party. We expect here a sharp change in the next three years. For now and for the second half of 2022, the attractiveness of government-sponsored program was low. Was the new pro-project volume of REM Capital.
It's not an unusual level for REM Capital, but we are for now pretty far away from the extremely high and attractive environment which we saw a year ago. In total for the credit platform, it may look like a stable year. After record first half year, we lost in a year-over-year comparison in the second half of the year significant in volume because of the market environment, especially in the mortgage market. As well because of the special situation in the small and medium enterprise financing world. You could say it was a tough year. Looking back, we had to adjust our structures.
We had to cut down on our workforce in the credit platform as well. Already mentioned here, we kept all innovative projects alive going forward. Especially around the mortgage world with our heavy investment in the consumer-facing technology, automated advice processes, and automated credit decision processes. We keep investing there because we see this as a core driver for future market share gains and margin expansion in the Europace world. Next segment, close to this private client. As you know, the mortgage, the Dr. Klein financial system is in the core in a mortgage brokerage business as well. Dr. Klein lost 7% in this market environment, gained market share as well.
outperformed Interhyp, the closest competitor, by 8%, which is great. A great performance of Dr. Klein in this direct competition. Especially in the second half of the year with this tough market environment, we see that our decentralized structures of entrepreneurs in the local communities performs better than what bank branches can do in this business. Out of this crisis, mortgage brokers will leave as winners in every local business. Plus, the online world is already heavily dominated by them and consumers, which are more attracted to information right now, consider for a much longer time what they are going to do are more often in touch with mortgage brokers than they were before this crisis environment.
Unfortunately, for the first time, over a decade, lost a number of advisors. Our franchisees are smart as well. They see that they have less leads to advise on, so they reduce their workforce. They keep the better converting advisors. Especially advisors with a weak performance had to leave the franchise system and so we lost 40 of them. It's a pity because it was hard to build it up. On the other side, this resizing is necessary in the current market environment. I'm sure we will be able to regain this as soon as number of leads is going up again, and our franchisees will react fast at this moment as well. From a financial perspective, it was not a record year for Dr. Klein.
As well, for the first time for a long period. Still Dr. Klein performed all in all pretty well in this situation. Stayed pretty profitable over the whole year and even at the end of the year and the most toughest situation of the market, which we saw by now, was profit and cash flow positive and made a good business. Okay, next segment, real estate. You're aware of this, that we split the market in three groups.
We have an homeownership market which was shrinking, as I said, but still something around 30 million units, 40%-45% market share here in Germany, which is our four core focus with the whole Europace mortgage business, Dr. Klein business, but as well here with fire and value. Beside this is the renting market and you can say there are two types of renting market. The housing companies, typically municipal-owned or cooperative-owned, so social housing, with roughly 6 million units. Another target group that we serve under the brand Dr. Klein Wowi. Yeah. They are, you can say, stable. They are I will talk about this in a moment when we talk about the financing platform.
In between, you have a group of smaller landlords, typically private, which bought renting apartments for their pension, yeah, or do this a little bit more professional. This is an area of business with 60 million units which we are not really addressing. From today's perspective, I'm pretty happy about this because this is a market which is under pressure, because of regulation. Looking forward, I expect this market to shrink in favor of the homeownership market. Let's say first 2022, how we performed. Let's look first on the homeownership market, where we use our strong position in the mortgage market with slowly every third mortgage going through Europace here in the market.
To use this strength to expand the valuation worked as well in 2022. We increased our market share and valuation to roughly 11%. In the value chain to go behind you is easy. In the other direction in front of you, it's more difficult and we lost market share there. The reason here is that our core target group, the real estate agents of banks, lost heavily market share because, let's put it mildly, when you need to sell a home, really when selling homes is your core competence, you can't just sit in the branch of a bank. You need to be more active. Up until the beginning of the year, homes sold themselves. You just had to manage the process.
Since the second quarter, you really need to sell something, and selling is not a stronghold of real estate agents of banks. Second, even with our support, they are still far behind in digitalization and online presence, and people are much more intensive researching and looking around. Other agent groups are more effective with this. We see as well a growing C2C market here in Germany, which the banks still don't address properly. How does the different units performed in this in detail? Far on the transaction side and the real estate broker side grew. We could add additional clients, especially in the cooperative banking sector. Where FIO has still a huge growth potential.
At the same moment because of mergers between the savings banks or between corporate bank, the growth number declined. In total, their transaction volume declined by 28%. More than market. Market was down. No figures out right now, but our expectation 15%-20%. They lost 28%. We could gain revenue because of additional services on the platform and the very successful FIO business in the managing system for the renting market. So ERP system for homeowners grew from a small basis, but it's getting slowly significant here in this number.
Let's say struggling environment, struggling clients, but we were growing, but have to invest substantial in this business to gain traction here. Talking about gaining traction, VALUE AG, with a strong link to our other mortgage businesses, could gain additional clients. More and more banks use more and more services of VALUE AG. The number of valuations went up, so the number of involvements in the value chain of VALUE AG increased, which is great. And we could increase our revenue with this. But as a, let's say, VALUE AG was in 2022 not affected by the turbulent market environment.
Most of the time we had difficulties to scale our business with the amount of new clients that we were onboarding and deliver the execution resources for this. Were hit heavily when BaFin in the second quarter prohibited online inspections because of a rollback of all corona-linked easiness for the banks. This surprised us. The necessary adjustment in our resources to be able to offline again do the valuation and inspections costed us a lot of money and a lot of traction. In the third quarter alone, it was EUR 3 million. In the fourth quarter was another substantial amount added to this.
BaFin did this all just to roll back, to now this video inspections is allowed again at the end of the year. They put as an troubling issue that the LTV is then lower when you inspect the property remotely. Still it's not that it the digitalization efficiency is coming back fast. With this very volatile regulatory environment, VALUE AG lost a substantial amount of money. Even without this turbulent market around this was a very intensive year for VALUE AG and fully unnecessary in this moment. Okay. Third product area, housing associations. I said already it's a stable environment.
Especially from the number of units you can say they don't change the number of apartments they own and manage. Recently they started to build. You can say in 2022 this stopped. The number of new social houses financed dropped sharply here in Germany because of the interest rate rise in combination with too high regulation of building and renting housing. The whole real estate industry and especially the housing associations are in some kind of strike. They don't finance anymore. They don't plan to build anything until the regulatory environment is changed. We could in this really tough environment, outperform the market or take heavily market share.
We found the things that had to be financed still, especially in the area of modernization. Some acquired properties when the price was okay. We could even increase in this environment at our mortgage volume on the financing platform for housing associations by 2% and our revenue out of this by 25%. Very successful year for this unit. Will be challenging in 2023 if the regulatory environment is not changing. Overall for the segment, a year of growth + 12%, which is fine, but with heavy investments. Especially VALUE AG costed us too much money in 2022. This hick-hack, this regulation was painful.
The whole segment is not fully affected by the market environment. We focused especially in this area, our approach to reduce costs and find a new balance between investments and future growth. The last segment, insurance. Let's say, we entered insurance already seven years ago with the goal to be a little bit less dependent on the lending market and especially the mortgage market. Unfortunately, still we couldn't grow to a size where the stability of the insurance industry gives a stability to Hypoport in general.
Now in the current environment, in this personal loan business and the personal mortgage business, especially we can say that thanks that the insurance industry is just a stable market environment. Small incremental growth in premiums, not affected by recessions, inflation or other core macroeconomic events which we see right now. We have three areas of digitalization, product areas where we digitalize the personal insurance part, the Smart InsurTech, the employer linked pension market with e-pension and the industrial insurance market with Corify. All three are relevant markets here in Germany. In all three, we have a small market shares for now with a different growth speed, you can say.
In the private insurance area with Smart InsurTech, we are still in the process of migrating existing clients, which we acquired with existing on-premise solutions to centralized platform. 10% of migration in the last year. Additional migration of volume in the last year is below expectation. We had heavy investments in the last five years in this area to speed up this process of migration. We were not successful to speed this up. Because of the need to readjust our investment strategy for the group in general, we reduced here our investment and we don't try this additional investment anymore to speed this process up.
We don't expect it to slow down, to be honest, for the upcoming years. The validation rate increased to 30%, our links, our interfaces with the insurer, increased their relevance for the volume. For the first time, you can say more than EUR 1 billion in the platform is synced automatically with the information in the databases of the insurance companies. For every additional service, this is relevant that we have this quality of information of data in the joint platform. Still it's a long way to go to finish the migration and finish the integration with the insurance companies here. It will stay a growth path.
I'm sure about this, just, we will not invest so heavily anymore in this area. It's part of our saving program that we executed end of last year. Completely different story. The industrial insurance market, where with an acquisition, we gained a certain traction on the client base, managing their existing insurance portfolios and, together with them in the last year, identified the need for an platform for auctioning new insurance risks in industries. We got a pretty good feedback for this idea of our existing client and as well potential new client for the platform.
We are in the developing process for the platform, in summer this year, we expect to go live with a beta and change the way how industrial insurances are underwritten here in Germany. This. It's a pretty cool thing. We expect here a potential very valuable business to be identified next to this pretty slow-moving private insurance business. Yeah, the last one as well, faster developing than expected to be fair. Our employer-linked pension digitalization platform where there's a huge level of complexity between these four parties involved. Where a lot of data need to be exchanged, a lot of complexity is there, and especially employers to fulfill their obligations there and needs the technology.
We are here in a good position in the market. Just two grown-up companies are competing to digitalize this market. It has, as you can see, a huge potential in front of us. Okay. In total, insurance business was growing last year. The 26% looks better than it actually was. There was this an acquisition of AMEXPool, which for the first time recognized in our numbers. Organic, we grew by 6%, still outperforming the increase or the growth of the industry substantial. Well, it's the dynamic was below our expectation and we've used our effort and investments going forward in 2023. 2022 will be the last year where we lost money in this segment.
I expect the growth speed to sustain in this area of high one digit and maybe we reach even double-digit thanks to the industrial area. This were the four segments. When we look on the total group level and the total year, you can say, loss of profitability thanks to this sharp change in market environment and that we were, let's say, pretty surprised by the intensity of the drop in our core market. When you look on just the fourth quarter, you see that the current market environment is costing us revenue and profitability.
With the necessary adjustments that we did at the end of last year, we feel pretty comfortable going forward, even if the market environment would stay tough for a longer period. On a long-term view, you can say in 2022, Hypoport entered a new phase after seven years of strong growth from 2014 to 2021. We are now in some kind of a quality growth, we call it. Where in the tough market environment we will take market share to grow. As soon as we see a normalization of our especially core market, we expect a fast increase in profitability, and it will not take seven years from now.
How long it will take, we talk about in the next area. Before we look on the market, just a reminder, we communicated this already. In the fourth quarter, we reduced our workforce and restructured a lot of areas as well in our other costs. We had one of a net one-off effect of minus EUR 4 million to execute this all end of last year. With this our cost base compared to the third quarter was reduced by roughly EUR 10 million per quarter. For 2023, we expect EUR 35 million-EUR 40 million less cost than we would have had if we would have continued with the cost of Q3. It's a pity that we lost so many talents on the way.
As you know, we were in a heavy investment situation in the beginning of the year and had a lot of ideas which we and projects where we looked for new opportunities. We stayed with the with all the projects which are already visible to clients and where we see traction. Especially around the mortgage business world, or Corify in the insurance industry, or GENOPACE with the corporate banking sector and personal loans. There we keep investing because we see the near-term chance and see this as very, very well invested money even right now in the second in the current circumstances. For us, it's enough that we are cash flow positive.
Even in the circumstances, we don't need to generate exceeding profitability right now by shutting down more innovative projects. We keep the balance between where we are still putting our money even in this tough situations and where we see the trends in this market environment as well. Yeah, short about our capital increase. We raised EUR 50 million especially as a signal to everyone in our core industries that Hypoport is there. Hypoport is a strong, reliable partner in every market environment. Calculate with us, solve your problems with us. We are part of the solution. We are not weak. Don't try to get a bargain with us right now. Try to get a solution for your problem with us.
This is where you need to look at. Okay. Looking at our core market and the question, how it is going to perform near time. You need to understand how the German mortgage market works. How German households actually decide to make an investment and acquire their first home and leaving the renting market, entering the home ownership market. Core trigger events are childrens. Especially to build something new, you do this because you expect childrens or they just arrived. To purchase your first home, it's typically as well triggered by childrens.
Sometimes as well because you fall in love and you want to move together, sometimes because you divorce and you need an additional home. Sometimes because you change the area of your living, you move to a different metropolitan area, and you were used to live in your own home, and you want to keep this. These are the reasons why you buy. In Germany, you don't upgrade because interest rates are low, or you can afford more. Yeah. Germans buy once, and they leave their home with their feet first. Yeah. This is very important to understand this because the not the interest rate change is the core core reason right now why the market is down.
The core reason why the market is down right now is that the trigger events are there, but people need to adjust their dreams to the reality. The reality is right now, mortgage rates of roughly 3.5%-4%, and trickling down property prices. This trickling down to property prices gives an incentive to wait. As long they trickle down, people still have the hope that they can afford more than they could right now. This as an adjustment of the dream with which you enter this decision process is slowed down. From our perspective, let's say the current price drop is 15% from a peak in May last year, on average.
To be fair, especially energy efficient homes, dropped much less, more or less close to zero, while energy inefficient dropped sharper. In average, we saw a drop of 15%. Depending on what you are looking for, this is relevant for you. The, or for the total market is just 15%. If you would like an a total adjustment to the interest rate increase which occurred in the beginning of 2022, you would need a price drop of roughly 30%-35%. Over time, because of increasing incomes, the affordability gap closes from both sides. We are at -50% on the top line of the price, and we are with the income 5%-10% up. Let's say it's a race.
The first who want to buy or is able to buy a property is going to close the deal. It's not the average of income, it's what the target group and these are, let's say we are not talking about social housing here. We are talking about people who are able to afford a home in the upper third of the German income level. The ones who's developing its income the fastest catches the properties first. The gap is slowly closing. We see this as well in the dynamic and the price changes. We started slow in May with in the summer, 1% per month decline in property prices.
At the end of the year, we reached roughly 2% per month, and now we are already down to 1% decline only. So the decline is slowing down, and we expect in the next couple of months already that we are getting to a stable price environment. Just short after this, we will see increasing prices here again. Core reason is, net migration is high, demand is high. The renting market is fully frozen. Sharp increases in rents, you could say +10% easily right now on a yearly basis. City of Munich just reported a 21% increase compared to two years ago. For Berlin, the second-largest portal here reported last week an increase of 27% on the quarterly basis.
The renting market is really fully frozen now and, so if you have an increasing income, you have a trigger event, you just need to buy to solve this, and you need to just adjust your dream to this what you are really able to afford. We see these dynamics ongoing, and as I said, expect for the next couple of months already a turning point. From there, we expect that, thanks to the frozen renting market, we will see transaction numbers higher than before 2022. In the beginning with still lower volumes per transaction because of the lower prices. From this EUR 250 billion-EUR 300 billion market we had in 2021.
When we leave this current situation, we will come to a roughly EUR 250-plus billion market for the same type of acquisition of properties and building properties. What comes on top of this is the decarbonization investments that are needed. For Germany right now, the laws are implemented to upgrade your heating starting first of effective first of January 2024, which will lead to additional investments just in the next 10 years of roughly EUR 1,000 billion. Plus from on EU level right now, a new directive is in final negotiation, where all homes with an energy efficiency level below D needs to be upgraded under 2023. 2032, sorry, 2032.
As for the next 10 years, which leads to additional investments of EUR 1,500 billion here in Germany. Part of this investments are renting markets or more or less a good half of it. For the homeownership market, we expect investment needs in average for the next 10 years, just based off the current regulation and the current environment of EUR 80 billion in addition. This adds up to a total market of something around EUR 350 billion in the near time future. From a market volume where we are right now in January, on Bundesbank reported EUR 13 billion, so EUR 150 billion, if you analyze it. More than doubling of the market volume we expect for the upcoming years.
The question is just how fast it's going to get there and not if. With this in mind, put our guidance into perspective. For this year, it's really difficult to predict how fast this transformation of the market will go forward with, let's say in a slow speed and a slow normalization. We expect still in comparison to last year, a decline on a full year basis. We are pretty sure that our first half of this year is better than the second half of last year, but the first half of last year was really at a record level. If the second half of this year will get close enough, we don't know.
We expect a decline in revenue in total from up to 10% and a decline in our profitability of up to 30% for a total year. With just a certain level of normalization. From an investor perspective, from my perspective, much more important is our long-term view, from here, there's double-digit growth then. I just described it. We are talking about a EUR 350 billion market, up to EUR 400 billion market from a EUR 150 billion where we are right now. There's a huge growth potential and our incremental margin in most of our business model is 100%. The question is, will 2024 or 2025 be a new record year for Hypoport?
Not if there's coming a new record year for Hypoport, and our last record year was 2021, and this is not long ago. We have a track record of double-digit growth for 20 years, and we will keep getting back on this track as soon as we see a normalization in our core market. Okay, this said, I'm happy to answer additional questions if I didn't answer everything which was out there already.
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Yeah, thank you. No problem if all questions are answered. If you have some more, contact our IR. Actually, what I didn't mention is, we saw a stabilization already in the last few months of the last year. January, February was in line with this perspective. We saw the bottom. From here, we see incremental movements up. With this in mind, in two months, we will update you on development of the first quarter here. How fast the environment is developing, how we are performing in this. I'm pretty sure that from here, there's only one direction, happy to keep you updated there. Thanks for your time and, see you here at the beginning of May.
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