Kristjan Tamla, CEO of commercial real estate management company EfTEN, noted that expectations of changes in interest rates have strongly influenced stocks in the sector: first negatively, now positively.
“Real estate companies are one of the most sensitive sectors to interest rate movements due to their high debt burden. The faster-than-expected rise in interest rates in 2022 and 2023 was one reason why real estate stocks companies in this sector were among the biggest losers in both Europe and the United States,” Tamla said.
Market expectations about what the Euribor level could be at the end of 2024 have collapsed in a couple of months about From the 3.5% level to the 2.4% level, which also meant a ray of hope for the sector and which, in turn, laid the foundation for the rapid rise in stocks.
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2023-12-23 08:30:00
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