Autumn potential despite interest and regulation
The economic picture has changed completely in recent months. Due to inflation, the ECB (European Central Bank) is raising interest rates at an accelerated pace. It has impact on the property investment market. The financing interest rate is rising and causing prices to fall slightly. Net initial yields are also rising, although they are still low. The dynamics remain high: there is a lot of capital available and real estate remains an attractive investment product. If interest rates stabilise, CBRE sees great potential for the autumn in most sectors. The exception is the residential investment market, where uncertainty about impending regulation is causing caution. At the beginning of 2022, CBRE was assuming a total investment volume of € 20 billion, which is now € 18 billion.