FRANKFURT (dpa-AFX Broker) - Real estate stocks continue to have a hard time. On Monday, the decline of the sector continued on the German stock market despite a stabilization of the overall market. A critical commentary on the industry in the "Wirtschaftswoche" also clouded the mood. Across Europe, shares in the sector were under pressure.

Vonovia, bringing up the rear on the Dax, lost 1.8 percent. TAG and LEG lost 3.3 and 1.8 percent respectively in the MDax. In the SDax, Patrizia and Hamborner Reit fell by 2.2 and 0.9 percent, respectively.

Wirtschaftswoche" was pessimistic about the German housing sector. The recent drastic devaluations of real estate portfolios are likely to be followed by further corrections, thus widening the billions in losses on the balance sheets. Housing companies have responded by selling portfolios below book value and cutting or cancelling dividends. The paper sees further adversity from the politically pushed energy-efficient refurbishment of housing in the coming years, which is likely to further swell the already high level of debt./edh/jha/

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