The new European credit liquidity barometer for real estate debt markets by FinLoop is based on relative market performance for 8 selected European markets, and is published on a quarterly basis. It tries to assess the credit environment and debt availability for real estate investors in each market based on economic, financial and property market indicators.
Key findings Q1 2022
- Germany and the Netherlands still offer the best debt affordability for real estate investors given the overall low property yields and rising interest rates.
- France has lost attractiveness due to fast increasing government bond yields and slightly lower debt affordability than Germany or the overall EU average.
- The UK showed an improved market score in Q1 2022 compared to Q4 2021 due to improved GDP growth forecast but has the lowest absolute debt affordability after Poland.
- Across Europe more than 500 lenders reported they could lend up to €100million. Offices were still the most popular asset class to lend against, with 802 lenders willing to provide loans, followed by residential with 728 lenders.
- Only 72 lenders reported to be open to hotel financing.