German real estate giant Vonovia has sent shockwaves through the market by significantly cutting its 2028 targets, a stark warning that the era of cheap money is over and higher interest rates are now crippling transaction activity. The company’s decision signals a broader downturn in the property sector, where rising borrowing costs are making it increasingly difficult for landlords to finance new deals and for buyers to secure mortgages, leading to a sharp slowdown in sales and a potential reevaluation of property values.
Adapted from: WSJ.com: Markets
