"The ECB's decision to leave key interest rates unchanged was to be expected despite the current uncertainties."

"The ECB's decision to leave key interest rates unchanged was to be expected despite the current uncertainties. If the fighting in the Middle East remains limited in space and time, the impact on the real estate industry is likely to be manageable. Rising energy prices could further increase construction and operating costs, but would hardly lead directly to structural market distortions. More critical would be a permanent inflationary stimulus that keeps financing costs high.

In commercial real estate financing, borrowers should therefore increasingly examine the possibility of interest rate hedging, even if the forward rates have already reacted to the increased risk. A need for action arises above all if the borrower's own risk assessment exceeds that of the market. In this case, it may make sense to hedge against the expected further interest rate rises at an early stage. This is especially true for project developers, who often underestimate interest rate risks. Interest rate hedging should also be strategically considered for upcoming extensions."