{
  "id": 12762071,
  "title": "Real Estate: \"Cold headwind\" - LEG CEO warns of consequences of interest rate rise",
  "url": "https://urgent.news/2026/10/08/immobilien-kalter-gegenwind-leg-chef-warnt-vor-folgen-des-zinsanstiegs",
  "topic": "business",
  "section": "Business",
  "published": "2026-10-08T01:59:27.000Z",
  "source": {
    "name": "Handelsblatt",
    "slug": "handelsblatt",
    "url": "https://www.handelsblatt.com/finanzen/immobilien/immobilien-kalter-gegenwind-legchef-warnt-vor-folgen-des-zinsanstiegs/100260070.html"
  },
  "original_language": "de",
  "account": "Herr von Lackum, a prominent figure in the German real estate sector, has warned of the consequences of rising interest rates on the market. The recent surge in building loan costs, which have been high since 2008, has left a significant impact on the sector. The increase of around 100 basis points has resulted in additional costs of approximately ten million euros per year for LEG Immobilien, as they typically refinance a billion euros annually. While this year's effects have not yet materialized, the impact is expected to be felt next year. Despite compensating for the rising interest rates through efficiency improvements, rent increases, and organic growth, the increased costs could still amount to five percent of the company's earnings. The higher interest rates are particularly affecting those looking to build, with private builders finding it more challenging to finance their projects. For professionals, planning becomes more complicated due to the need to consider the long-term impact of acquiring a property and the potential for achieving the desired price at the time of completion. The lowered demand for new construction projects is a clear indication of the challenges faced by the sector.",
  "summary": "The upward trend in interest rates is clearly noticeable. The CEO of Germany's second-largest real estate company fears that this will have a negative impact, especially in one area.",
  "key_points": [
    "German real estate sector faces consequences of rising interest rates.",
    "LEG Immobilien incurs additional costs of €10 million annually due to rate hike.",
    "Increased interest rates impact private builders and long-term property planning."
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}