Suche
Mein Konto
BayernLB's board of directors predicts increasing value adjustments on real estate
According to a report from finanzmarktwelt.de, there have been discussions about the crisis on the real estate market for weeks. The industry is concerned with the question of whether the low point has already been reached or whether further losses in value and write-offs of receivables are imminent. BayernLB board member Gero Bergmann commented on this topic and predicted further write-downs on real estate. According to Bergmann, the crisis in the real estate market has not yet reached its peak. He explained that the crisis is leaving its mark on banks in the form of higher risk provisions. This statement suggests that further impairments may be imminent. However, Bergmann emphasized that the industry as a whole is well prepared for this. According to...
BayernLB's board of directors predicts increasing value adjustments on real estate
According to a report by finanzmarktwelt.de,
There have been discussions about the crisis on the real estate market for weeks. The industry is concerned with the question of whether the low point has already been reached or whether further losses in value and write-offs of receivables are imminent. BayernLB board member Gero Bergmann commented on this topic and predicted further write-downs on real estate.
According to Bergmann, the crisis in the real estate market has not yet reached its peak. He explained that the crisis is leaving its mark on banks in the form of higher risk provisions. This statement suggests that further impairments may be imminent. However, Bergmann emphasized that the industry as a whole is well prepared for this.
According to Bergmann, the real estate markets worldwide are in trouble due to rising interest rates and falling demand. The insolvency of René Benko's Signa Holding underlined this problem. The state banks are also affected and have already made provisions for real estate.
The Bundesbank also sees “increased risks” in commercial real estate and reports a slight increase in loan defaults. However, Bergmann emphasizes that banks are not in the front row of those affected this time, as the sector's capital base has been significantly strengthened.
According to Bergmann, prices for residential and commercial real estate are currently around 7% and 12% below their respective peaks in the middle of 2022. He assumes that the peak of the crisis is still ahead of us and that capital values will continue to decline for a few more quarters. The real estate market is not expected to stabilize until next year, although Bergmann assumes that this will occur sooner for residential properties than for commercial properties.
These forecasts from Gero Bergmann indicate that the real estate industry will continue to face challenges and will have to prepare for further impairments. It remains to be seen how the markets will develop in the next few quarters.
Read the source article at finanzmarktwelt.de