A decade-long boom in deal-making has been slowed by a worsening economic environment, BNP Paribas says.
The real estate sector in Germany dropped in the last three months of 2022 due to the surging costs of financing and to record inflation in Europe’s largest economy, a report published on Monday by BNP Paribas showed.
Investments in the country’s commercial property sector slumped by 50% from October to December, compared to the five-year average for the period, and reached just €9.9 billion ($10.6 billion).
The sector took a strong hit as investors shied away from deals due to rising interest rates and an overall worsening economic environment in Germany, the survey results revealed.
Soaring costs “drove a wedge” between pricing expectations of buyers and sellers and “many large transactions that already were at marketing stage did not take place,” the CEO of BNP Paribas Real Estate Germany, Marcus Zorn, said in the report. Zorn also expects the trend will persist for at least six months of this year.
The residential real estate market in the country is facing an even worse crisis, with its volume of deals having plummeted by 74% in the full year of 2022 compared to 2021, Bloomberg has reported, citing a separate report by BNP Paribas.
Real estate companies are struggling across Europe following a series of interest-rate hikes conducted in 2022 by the European Central Bank and other financial regulators in a bid to curb inflation. Tighter monetary policy has largely disrupted deal-making in the sector and brought to a halt a decade-long boom in asset prices.
Image credit: Sabine
Its all part of the Morgenthau plan.
Compare the Morgenthau Plan to the Marshall Plan…
Why the price drop?
Could it be that people cannot heat or cool their homes, and thus are now trying to sell with the intention of permanently leaving Germany and are now clogging-up the real estate market in Deutschland?
Are the Germans moving to other countries to escape being cut-off from Russian energy supplies, and the soon-to-be orchestrated war that Zio-Communist Talmudic NATO are getting ready to go full-kinetic come the springtime?
OR…could the drop be the result of migrants not being able to afford homes in Deutschland, so the anti-German government is dropping the prices so that migrants can buy in, similar to the migrants now owning all of both east and south of Londonstan, which has resulted in high crime, slum conditions, and the erasure of White Anglo-Saxon Culture that the UK is based on…
Most Germans who can afford to do so are bailing out, but not to other European Nations; they seem to be going to South America, and parts of Africa. They won’t be the victims this time around…!
After all, going to Argentina and Patagonia worked for Hitler, and his wife Eva and daughter Ursula for many years (see Harry Cooper’s book ‘Hitler in Argentina’ and the video movie of the same…).
I wonder if the U-Boat Fleet of the Bundesmarine are now sailing on classified missions to Argentina, taking tangible valuables that would be placed in safe-keeping with German-owned investment firms in Patagonia..?
Sea Tracker doesn’t seem to show anything, but then again, going under in the stealth mode make that difficult anyway.