Open real estate funds lose more than 14 billion euros

The situation for open real estate funds in Germany remains tense. The funds have collectively lost more than 14 billion euros in recent years.

According to the Bundesbank, the loss amounts to more than ten percent of the assets the funds managed in 2023. High interest rates on loans, limited market activity and rising redemption requests from investors have repeatedly led to temporary closures of individual funds.

Critics and supporters alike cite consulting errors at banks and mismanagement in addition to the difficult external conditions. Stefan Loipfinger, founder of the platform InvestmentCheck, spoke of an incurable loss of image.

Loipfinger said open real estate funds cannot continue in their current form. Handelsblatt questioned analysts, investors, lawyers, consumer advocates and academics about necessary changes.

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Germany's financial regulator BaFin has taken action against the Deutsche Finance Group. Around 50,000 private investors are affected by the measures. The authority is demanding information and documents on closed public funds.

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Hamburg real estate investor Dieter Becken spoke in a Handelsblatt interview about conversion projects and the state of the industry.

Foreign investors have pulled nearly 60 percent of inflows from India-focused equity funds since their 2024 peak. The shift is attributed to opportunities in global AI investments. Nine billion dollars left India funds during 2026.

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The German Association of Cities demands that department store chain Galeria involve affected municipalities in talks over 33 locations. The company is reviewing these branches for profitability and possible closures.

 

 

 

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