Up until today, equity release has been a virtually untapped market in Germany. The practice of releasing the capital tied up in German residential property with­out the requirement to move out, however, has enormous potential.

Even with a cautious valuation, assuming average partial sales proceeds of €170,000 per home, the theoretical market volume is estimated at €308 billion, with the capacity for a strong upward trend. But unlike in the United Kingdom or the United States, this market leads a niche existence in Germany, with just 1 percent of the potential currently being exploited. But there is much to suggest that this will soon change.

Firstly, an increased demand for equity release is expected on the part of German homeowners. In the coming years, the particularly high-birth-rate cohorts of the "baby boomers" will retire. According to the latest figures from the Federal Statistical Office of Germany (Desta­tis), this will affect 12.9 million people by 203