What are the risks associated with real estate investment?

Like any investment, real estate carries certain risks that can affect your returns.
When you invest through Piece, your performance depends on both the property and the issuer (the company owning it).
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Here are the main risks to consider:
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​Property market risk: Your initial investment amount is still repaid in full at maturity, however if property prices fall, the final bonus linked to value appreciation may be lower or even zero.
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​Rental income risk: If the property is vacant or tenants stop paying rent, your monthly interest payments could decrease or be temporarily paused.
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​Issuer risk: The company owning the property (German Estate Group) could, in theory, face financial difficulties. However, this is considered a low probability scenario, since the company’s capital is directly composed of the real estate assets themselves, which provide strong underlying value and make the issuer structurally solid.
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​Liquidity risk: These investments are designed for the long term. Selling before maturity might not always be possible or may involve a discount.
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While real estate can offer stable income and long-term value growth, it’s important to invest only amounts that match your risk tolerance and investment horizon.
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