Commercial real estate
The real estate and financial sectors are closely interwoven, and real estate market problems have been at the core of many financial crises. Such problems may arise in the residential as well as in the commercial real estate market, but the impact of the latter is often greater (Figure 1). In the Netherlands, for instance, the developments in the commercial real estate market caused significant losses for banks after 2008, and eventually resulted in the nationalisation of SNS Reaal.
Figure 1: price fluctuations in commercial real estate are often more extreme than in residential real estate
(price level drop to lowest point; crisis year in brackets)