Stefan Hoenen, Head of Commercial Real Estate at Hamburg Commercial Bank
"As expected, the ECB has left key interest rates unchanged, buying time in an environment of geopolitically-driven inflation risks. For the real estate industry, this means a breathing space for the time being: financing costs will not continue to rise for the time being, and at least planning security for ongoing transactions will be maintained. At the same time, the relief is deceptive, because the pressure on price and yield expectations will remain high as long as energy prices and inflation expectations rise as a result of the Iran war. Investors and project developers must be prepared for the fact that this interest rate pause is less a signal of the all-clear than a pause before possible tightening in the summer. Market activity is likely to remain correspondingly subdued – stabilisation yes, but not new momentum."
