Real estate market: Falling prices - crisis increasingly threatens banks. Residential property prices can be expected to stabilize in the summer, but commercial property prices will not stabilize before the end of the year.
The main reason for the drop in prices is increased interest rates, which make real estate financing more expensive. Many people can no longer afford to buy, and investments are no longer worthwhile for large investors. The crisis is now also reaching German banks, Deutsche Pfandbriefbank had to increase its risk provisions against crises.