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KPMG Property Lending Barometer 2020

KPMG Property Lending Barometer 2020

The Property Lending Barometer (PLB) is a survey of the real estate financing environment, conducted among banking professionals and regularly published by KPMG for the past 10 years. This year, some 60 European banks from 11 countries participated in the survey, which took place between the end of May and June. The 2020 edition includes a special section on the Covid-19 impact on property financing.

According to the early release findings, Banks in Europe are expecting a slow economic recovery in the wake of the COVID-19 pandemic. While they forecast that hotel and retail loan portfolios will likely be hit more considerably than office and other real estate asset classes, most of them believe that the impairment will be in the range of a few percentage points up to 10% in total.

Banks in Cyprus expect the economic recovery to be geared towards the “U-shaped” form of economic recovery (32,8%), followed by “Nike-swoosh” (27,8%). Responses to the question as to whether central bank and governmental policy decisions have helped decrease the negative impact of the pandemic on real estate financing, revealed that  37,5% of the respondents in Cyprus agree or strongly agree that policy decisions have significantly reduced the negative impact of the pandemic on real estate financing.

For more information on a local level, access the full analysis of the Cypriot results.

 

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