The CEO of Deutsche Bank, Christian Sewing, has expressed concern for the commercial real estate sector in the coming years, which he says could face some tough times ahead.
Many firms have invested heavily in commercial real estate over the last decade to cushion the effect of negative interest rates that has impacted profitability.
Increased borrowing costs, as central banks react to surging inflation, and the move towards increased remote working fuelled by the ongoing Covid pandemic, will adversely affect commercial real estate.
Sewing said Deutsche Bank’s investment in this sector was under control.
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