German residential real estate financing is predominantly floating-rate at origination, typically linked to EURIBOR (3-month or 6-month) with a credit spread. Borrowers routinely hedge interest rate exposure through EUR interest rate swaps, locking in fixed rates over the loan tenor — usually between 5 and 15 years for core residential assets.

The ECB's rate-tightening cycle from July 2022 to September 2023 brought the deposit facility rate from -0.50% to 4.00%, sharply increasing financing costs across the European real estate sector. The subsequent easing cycle — which began in June 2024 — has progressively reduced benchmark rates, improving debt service economics for both new acquisitions and refinancing transactions. The charts below track the key rates and benchmarks relevant to EnTerra's financing activity.