FRANKFURT (dpa-AFX) - Investors' interest rate hopes were reflected in above-average rises in real estate stocks on Friday. Their pan-European sector index, the Stoxx Europe 600 Real Estate, recovered from its recent losses by extending its daily gain in the morning to up to 1.6 percent. Most recently, it rebounded somewhat with the overall market to gain 1.2 percent. However, this meant that real estate stocks continued to lead the European sector comparison.

In the Dax, Vonovia shares, which recently hit a low since November, were among the comparatively big winners on Friday, gaining 1.3 percent. Aroundtown was among the favorites in the MDax with a plus of 1.6 percent, complemented by TAG Immobilien and LEG with increases of up to 1.4 percent.

Price data from the eurozone had a supportive effect. Even if the decline did not quite meet expectations, it confirmed the recent trend of further weakening inflation. Consumer prices rose by 2.6% year-on-year in February, slightly less than in January.

This means that inflation is no longer too far away from the ECB's target of 2 percent, said market observer Thomas Gitzel from VP Bank on Friday. Although he continued to see less favorable aspects, he highlighted the falling core inflation rate, which excludes energy and food prices, as a positive finding.

Real estate values are particularly sensitive to inflation and interest rate signals because the high key interest rates have paralyzed the real estate market in recent months. Until the end of December, there was still hope for rapid interest rate cuts, which had brought the Stoxx Europe 600 Real Estate sector index to a high since February 2023 at the end of December. Investors then realized that it could take a little longer for interest rates to fall again. The sector index had lost up to 12% since the end of December.

"Obviously, June is crystallizing as the date on which the ECB will begin its cycle of interest rate cuts," wrote Commerzbank expert Antje Praefcke in the morning. There were only a few market participants who still sensed the chance of a rate cut as early as April./tih/tav/stk