FRANKFURT (dpa-AFX) - Investors took advantage of the low price level for real estate shares on Tuesday to buy. The industry is suffering from the interest rate turnaround of the central banks. Construction and house purchases are becoming more expensive, demand is falling.

With real estate prices rising for years, the adjustment to the new interest rate reality is still in full swing, wrote the economist of the private bank Donner & Reuschel, Carsten Mumm. Mumm spoke of standstill in the real estate market, which, however, also speaks for the fact that it is a cyclical correction and not the bursting of a price bubble. Thus, he said, there is no evidence of panic selling.

The European real estate sector is currently the second weakest sector behind commodities, with a loss of 5.3 percent since the beginning of the year. Since the beginning of 2022, there has even been a loss of more than 43 percent.

In the Dax, the shares of Vonovia have so far performed the weakest since the beginning of 2023, with minus 15.5 percent. On Tuesday, however, they were up 5.7 percent, brightening the short- and medium-term chart picture somewhat.

Apparently, many market participants first see the opportunity for a bottoming out in the prices of real estate shares. In the MDax, shares in Aroundtown, LEG and TAG rose by up to almost six percent, while in the SDax, Grand City Properties rose by a similar amount./ajx/ag/mis