Interest rates

With interest rate cuts setting the stage, European real estate lenders are gearing up for increased loan origination in 2024, particularly in the acquisition and development sectors.

Those expecting values to be correlative to debt ‘are holding out for something that won’t happen’, says the capital markets executive.

German banks face huge uncertainty as the country’s real estate sector gradually resets. Private debt managers are aiming to capitalise on the disruption.

The index scores calculated across the survey results show an improvement in respondents’ outlook.

The €499m bond, due to mature in October, was restructured with the help of a €100m loan from majority shareholder Apollo.

The first interest rate cut in the euro area has not changed the lending rate outlook for real estate.

Most lenders surveyed by the consultant say they will increase origination this year.

The firm is delving into the role public and private strategies play in institutional investor portfolios.  

The ratings agency said many facilities were secured by overvalued property and had weak covenants.

Real estate market participants do not expect a significant immediate change in debt market conditions.