FRANKFURT (dpa-AFX) - Shares from the real estate sector have defied the interest rate concerns of investors on Thursday for the time being. The market pointed out, especially in residential real estate shares, that the prospect of upcoming negotiations in Berlin on a coalition between the CDU and SPD lifted the mood somewhat. According to Berlin's governing mayor Franziska Giffey (SPD), there should be no blanket expropriation of large housing companies in a black-red coalition.

Even as expectations solidify that interest rates will continue to rise, Europe's Stoxx Europe 600 Real Estate sector index gained 0.4 percent in the morning, putting it in second place in the sector rankings. In Germany, however, it only supported prices in isolated cases: While Vonovia followed the general market weakness with a half-percent drop, LEG shares stood out positively at the top of the mid-cap MDax index. With an increase of 2.8 percent, they made up for their slide on the previous day. Deutsche Wohnen 's share price recently remained at the previous day's level.

Almost three weeks after the repeat election in Berlin, everything points to upcoming negotiations on a black-red coalition. From the SPD it was said that in the exploratory talks there were more overlaps with the CDU than with the previous partners, the Greens and the Left. On Thursday, the CDU's top candidate, Kai Wegner, will propose to his state executive committee to negotiate with the SPD on the formation of a coalition and a new senate, as the Deutsche Presse-Agentur learned from party circles.

The two parties probably do not intend a blanket expropriation of real estate, but the socialization of residential real estate in individual cases through purchase, said a stockbroker. This would have a positive effect for a short time, but ultimately the interest rate issue would remain dominant. New inflation data from the euro zone is expected soon, which will give further impressions of how great the monetary policy pressure on the European Central Bank. According to CMC Markets expert Jochen Stanzl, the likelihood is increasing that 3.75 percent just won't be the end of the road. "A level that was considered far too high three or four weeks ago is now slowly being established as the lowest limit," Stanzl said.

A value outside the residential real estate sector also stood out positively on Thursday: Dic Asset with a price jump of almost ten percent at the top of the small cap index SDax. Here, chart-technical aspects were considered to be decisive, as the share price made it above the 200-day average line, which is a popular chart-technical indicator, for the first time in almost a year. Another slightly positive factor was the company's announcement that it had now achieved full occupancy at a logistics property in Wolfhagen./tih/la/men