ECB Warns About Vulnerable Property Market in Eurozone

ECB Warns About Vulnerable Property Market in Eurozone
A commuter train passes by the skyline with its financial district ahead of the European Central Banks (ECB) governing council meeting later this week in Frankfurt, Germany, on Oct. 25, 2021. Kai Pfaffenbach/Reuters
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FRANKFURT—The property market is a “key vulnerability” for eurozone banks as the rise of remote working since the pandemic dents demand for offices and households take on more debt to buy expensive homes, the European Central Bank said on Wednesday.

Central bankers have been ringing alarm bells about the eurozone’s booming property market that has a decade of ultra-low interest rates and light-touch prudential regulation have helped create.