Soaring Interest Rates, Weakening Economy, Record Inflation…

What’s not to like?

Oh, yeah. Commercial real estate is taking a dive now too.

German Real Estate Deals Plunged 50% in Fourth Quarter, BNP Says

Germany’s real estate market took a deep hit in the fourth quarter as investors shied away from deals on the back of soaring financing costs.

Total investments in the country’s commercial property sector only reached €9.9 billion ($10.6 billion) in the last three months of 2022, a decline of 50% compared with the five-year average for the period, according to a report released by BNP Paribas’ real estate unit on Monday. The development is largely due to soaring interest rates, a weakening economy and record inflation, it said.

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