"The escalation in the Middle East is an acute stress factor for the real estate industry, also in Germany."

"The escalation in the Middle East is an acute stress factor for the real estate industry, including in Germany. Suddenly, the risk of disrupted supply chains, rising energy prices and inflation rates has increased. The real estate industry is hit twice: by higher interest rates or credit spreads in financing and by rising operating and construction costs. This is slowing down the already fragile market recovery and exacerbating selectivity: cash-flow-strong, energy-efficient properties will remain relatively robust, while capex-intensive portfolios and portfolios that are susceptible to refinancing will come under greater pressure."