Statement on the current ECB decision
“The increase in the key interest rate exacerbates the already great reluctance to invest in the real estate industry. Increased financing costs are increasing the pressure on many market participants, making it more difficult to implement new projects economically and to provide follow-up financing for ongoing projects. At the same time, however, it is also clear that there are still attractive investment opportunities on the market. In particular, digital infrastructure such as data centers remains in demand because the underlying growth drivers are intact and the return prospects are convincing even in a higher interest rate environment. In addition, there are investment vehicles that are much less affected by rising interest rates. Equity funds without debt financing can also take advantage of opportunities in a more challenging market environment. Investors will differentiate even more strongly and direct capital into those segments and structures that promise stable returns in the long term.”
