FRANKFURT (dpa-AFX) - Despite a weak stock market environment, shares from the real estate sector performed well on Tuesday morning. With stable earnings and dividends, they are considered a comparatively safe investment during weak and volatile market phases.
Vonovia shares rose by 1.8 percent in the DAX. In the MDAX, LEG, TAG, and Vonovia subsidiary Deutsche Wohnen gained up to 2.7 percent. The Stoxx 600 real estate sector increased by 1.2 percent.
The sector is also likely to benefit from falling interest rates in the capital markets. The yield on ten-year German government bonds dropped on Tuesday to its lowest level in almost three months. A low interest rate environment favors the ongoing refinancing of companies. In addition, transactions in the real estate sector become financially more attractive.
