Ulrich Creydt, Tax Consultant and Managing Director, Ypsilon Group
“The ECB’s increase in the interest rate is understandable. The rising energy prices as a result of the geopolitical crises caused prices to rise not only for gasoline and heating oil, but also for consumer products and building materials such as cement, steel, etc. The ECB could not ignore this development. Higher interest rates and geopolitical uncertainties could contribute to a further deterioration in sentiment in the real estate industry. For developers and investors, financing will deteriorate, and the number of deals will fall. The uncertain situation and the fear of growing inflation are also having an impact on consumer behaviour: many will delay the purchase of residential property. This, in turn, cements the “lock-in” effect, i.e. that more people stay in their rented apartments instead of buying ownership. This will certainly not lead to an easing of the rental housing market in the near future.”
