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European Real Estate Lending Market

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C&W Corporate Finance tracked a 55% increase in lending origination across Europe in 2014 (new investment lending, new development lending and refinance lending.)

Breaking this down, C&W Corporate Finance also tracked a 123% increase in new investment and development lending in 2014, with refinancing activity increasing by only 10%.

45% of all tracked origination in 2014 took place in the UK, whilst, 41% of tracked deals were recorded in the rest of Western Europe.

Southern European countries of Spain, Italy and Greece doubled their share of tracked lending in 2014 compared to 2013 and saw an 80% increase in tracked volumes.

Tracked lending against multi-sector real estate exceeded any individual sector exposure in 2014, with multi-asset or portfolio lending accounting for 57% of tracked origination by value.

Prime senior margins fell throughout Europe in 2014, with LTVs showing signs of stabilizing.

The all-in cost of debt for prime lending in the UK is at its lowest level since 2000, with the 5 year sterling swap hovering around 1.20% and prime margins down at 1.20%.

C&W Corporate Finance track and monitor 186 lenders across Europe, with non-bank lenders accounting for 47% of this number. The lending list remains diverse with international lenders increasingly re-joining the European marketplace.

Source : Cushman & Wakefield

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Keywords : Cushman & Wakefield