The Current Market Situation of Real Estate Stocks
The situation of real estate stocks from Vonovia, LEG, and TAG is currently strongly influenced by a volatile market environment, particularly due to the development of bond yields. A recent increase in yields has put pressure on property values, as higher interest rates lead to lower valuations, prompting investors to consider alternative investments.
Market Situation and Price Development
- Vonovia: This stock is currently one of the best in the DAX. Despite the general market weakness, it shows resilience and could benefit from rising interest rates due to unattractive bank stocks.
- LEG: LEG shows relative stability in the MDAX; however, the price development since the beginning of the year has been weaker than that of Vonovia. Analysts see potential for price increases despite higher debt levels and muted outlooks.
- TAG: Business in Poland is starting weakly, which has affected price development. Nevertheless, analysts also see potential for increases here.
Potential for Growth of the Companies
The potential for price recovery is particularly supported by the normalization of yields on federal bonds, which had previously risen significantly.
| Company | Current Price (approx.) | Average Analyst Price Target | Growth Potential |
|---|---|---|---|
| Vonovia | Not explicitly mentioned | Not explicitly mentioned | High (relative to the market) |
| LEG | ~€70 | ~€87 | >23% |
| TAG | ~€14–15* | ~€16.40 | ~14% |
*The exact current TAG price is not explicitly mentioned.
Conclusion
According to analyst estimates, real estate stocks like Vonovia, LEG, and TAG offer up to about 15% or more growth potential from the current level, with LEG standing out in particular. The expectation of moderate interest levels could provide further momentum; however, risks remain.