Real estate turnaround: why the European Central Bank warns of a “disorderly correction”.
The consequences of the turnaround in interest rates can be seen on the European real estate markets. In Switzerland, a “real devaluation” is underway.
The ECB warns of the impact of higher interest rates.
Image: Mathias Förster/CH Media
A correction is taking place on the real estate markets in the euro area. This is what the European Central Bank writes in its semi-annual publication Financial Stability Report. The rise in prices on the residential real estate markets has cooled off significantly in recent months. In other words: in some countries there were significant price declines. So far, these price corrections have been orderly. The previously existing overvaluation had been reduced. But it could also become a disorderly process.
