Financing conditions remain favorable for the European property markets in 2016.
Now in its 7th year, KPMG’s Property Lending Barometer provides insight into lending market conditions in Europe based on interviews with representatives from nearly 100 banks in 21 countries.
In 2016, a gradual improvement of the lending conditions seems to be a sustained trend. Still, despite the notable increase in bank financing, most countries’ markets are considered to have remained tighter compared to pre-crisis levels. Limiting factors to further improvement include the economic slowdown in China and the uncertainties caused by the UK Brexit vote.
According to the survey, financial institutions are clearly open to financing real estate projects. With relatively low interest rates and ample availability of finance, both from banks and alternative lenders, the macroeconomic environment is making real estate investment an appealing option for many investors.
For details on the specific markets, you can see the profiles of each country in the survey.