Crisis in the real estate market is reminiscent of autumn 2022
Quick Look
- The current situation on the real estate market is reminiscent of the fall of 2022.
- Triggered by the Iran War, rising prices are now having a persistent impact on the economy, similar to those after the Ukraine War and interest rate increases.
AI-generated summary
Why It Matters
In the fall of 2022, a crisis began in the real estate market as a result of the Ukrainian war and interest rate increases by the ECB.
The situation on the real estate market is reminiscent of autumn 2022. Back then, the industry came back from its summer vacation and realized that things were now getting serious. The inflationary shock following the outbreak of the Ukrainian war had a full impact on the economy, the European Central Bank began a historically rapid increase in key interest rates, and the crisis in the real estate market began.
It is currently becoming clear again how slowly but persistently the rising prices are affecting the economy, this time triggered by the Iran War. And now it is becoming clear how great the denial of reality can be in the real estate industry.
Open Questions
- How much will interest rates continue to rise?
- How does the real estate industry specifically react to the new pressures?
