"The higher interest rate level (...) does not necessarily mean worse business for the real estate industry, but different business models."

"The higher interest rate level, which has now been underpinned by the ECB decision, does not necessarily mean worse business for the real estate industry, but different business models. The adjustment will take place in particular through land prices, financing structures and investment decisions. We may even see the return of models that used to be taken for granted. In many project developments, the land was only paid for when building rights or building permits had been obtained. Option models spread the risks between the seller and the developer. During the low interest rate phase, such constructions largely disappeared from the market. There are some indications that they will be more common again in the future."