Nearly half of European commercial real estate lenders expect an increase in new loan originations within the next six months, according to research.
Germany and the Nordics are the main gainers in interest at the expense of the UK, according to a Cushman & Wakefield survey.
The firm said there was still competition for lending on prime buildings in trusted markets across Europe. Close to half of survey respondents said they expected to see an increase in new loan originations in the next six months.
A further 36% anticipated no change in current levels of activity and 17% believed loan originations would fall.
Cushman & Wakefield said this result was an improvement in sentiment compared to survey results from the end of 2016.
Lenders remained principally focussed on activity in the traditional big three markets of the UK, Germany and France.
However, while the UK maintains its position as the main market where lenders anticipate activity, it has lost some market share since the vote to leave the EU. Germany’s share of lending activity has increased while significant growth has also been seen in the Benelux and Nordic regions in particular.
James Spencer-Jones, regional head of structured finance at Cushman & Wakefield, said: “Outside the big three markets of the UK, Germany and France, there’s been a notable returning focus on the Nordics due to the region’s strong fundamentals which include stable governance and a transparent tax environment as well as high levels of investor liquidity.”
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