"For institutional real estate investors, this means that financing costs remain at an elevated level and investment decisions must continue to be made very selectively."

"The ECB's interest rate hike does not come as a surprise. In view of the ongoing inflationary pressure and geopolitical uncertainties, such a step was logical from the central bank's point of view. For institutional real estate investors, this means that financing costs remain at an elevated level and investment decisions must continue to be made very selectively, even though the interest rate increase is already priced into the current financing conditions. Whether additional interest rate steps will follow in the further course of the year depends largely on geopolitical developments in the Middle East. The decisive factor will be whether there is a sustainable pacification of the conflict with Iran, which enables the Strait of Hormuz to be kept open permanently and the normalisation of global trade and supply chains. Only then should the inflationary pressure on energy prices and international flows of goods weaken noticeably."