Over Brockhoff GmbH’s more than 35-year history, the real estate industry has experienced many ups and downs. It has always been important to adapt to the challenges of the time and respond flexibly to changing conditions. “We are once again in a period of change in the real estate world. There will be adjustments that are often perceived as uncertainty. Once the changes become the new normal, people will calm down again,” says Eckhard Brockhoff, looking to the future with more than three and a half decades of market experience.

After a prolonged period of low interest rates, people became accustomed to the significantly higher property multiples and treated high transaction activity as the new normal. Rising rates are leading to a logical adjustment of 10–20%. “Interest rates today are still significantly lower than they were many years ago, and markets functioned then too. We simply have to adapt,” Brockhoff says.

The often highly negative debate about rising construction costs and interest rates is more likely to harm business conditions. “We too see some decision-making processes taking longer. Nevertheless, Brockhoff continues to complete transactions successfully,” he adds. After an outstanding 2021 financial year, Brockhoff also expects a very good result for 2022.

There is still plenty of capital in the market, and investment pressure remains correspondingly high. The rapid rise in construction lending rates in the Q1 has lost some momentum. This is no surprise to the real estate expert: “If you do no business, you will soon have to close your shop. The same applies to banks. Lenders themselves will be keen to resume financing. I can well imagine a real year-end rally, with many deals suddenly moving forward after being on hold since spring,” predicts Brockhoff, who is already observing renewed activity in the investment market.