Germany Warns More Commercial Real Estate Pain Ahead
Skyscrapers in the financial district in Frankfurt, Germany.
Photographer: Alex Kraus/BloombergThis article is for subscribers only.
German’s top bank watchdog warned that lenders with large exposures to commercial real estate are in store for more pain as valuations for such assets are set to tumble further.
The current troubles of real estate investors and developers mean they will seek to sell more properties, extending the slump in the asset class, Mark Branson, the president of BaFin, said at a conference in Frankfurt on Monday.