FRANKFURT (dpa-AFX) - The business figures of Grand City Properties, which analysts considered quite positive, were not a driver for the shares of the residential real estate group on Wednesday. The SDax-listed shares lost 0.2 percent in the afternoon. The European real estate sector, the weakest in the Stoxx 600 index, fell by 0.7 percent, taking its toll on the recent rally.

In view of the easing inflationary pressure in the USA, investors are now assuming that interest rates have peaked. This assumption had already given the stock markets a significant boost the previous day and also caused real estate stocks, which are particularly sensitive to interest rates, to rise again.

The figures presented by Grand City in the middle of the week for the first nine months of the year apparently prompted investors to take profits. However, UBS analyst Charles Boissier noted that the residential real estate group was well on track to achieve its reaffirmed forecast for the key figures.

The results are slightly above his own estimates and are of good quality thanks to the continued solid rental growth, wrote analyst Kai Klose from Berenberg Bank.