Commerzbank: Head of Private Clients Sees Rising Interest Rates

house building

No bubble in house building, says Commerzbank board.

(Photo: dpa)

Frankfurt Since April last year, interest rates on Commerzbank residential real estate loans have risen by more than half a percentage point. In his first interview since taking office last fall, private client boss Thomas Schaufler speaks of “slightly reduced” business growth in this area, but still sees “strong demand” in it.

The Bundesbank has repeatedly warned against exaggerations in the real estate market and the financial supervisory authority is demanding that banks set aside more money for private financing of construction. Nevertheless, Schaufler sees no indication of a dangerous bubble: “In the luxury segment, there are certainly areas where the air is getting thinner. But I don’t see any major danger in the mass market.”

Read the full interview here:

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