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Higher interest rates: Experts expect more foreclosures

Apartments in Berlin

Real estate prices in Germany have been rising for years.

(Photo: dpa)

Frankfurt Because of rising interest rates, experts expect that more people will have to foreclose on apartments or houses. Interest rate hikes, high inflation and reduced consumer confidence are hitting the middle-income bracket, explained Walter Ruesch, managing director of the Argetra publishing house, on Friday.

There will be little room for negotiation with banks that have “financed real estate to the max” in recent years. “The consequence will inevitably be that the number of foreclosures will increase.” Because the procedure lasts one to two years, this will only be clearly noticeable in the years 2023 and 2024, said Ruesch. “Currently we only have a slight increase.”

The specialist publisher Argetra regularly publishes reports on compulsory real estate auctions and evaluates the corresponding dates at all of the almost 500 district courts in Germany. Researchers at the German Institute for Economic Research (DIW) had recently warned of more foreclosures.

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