Navigating the changing landscape of European real estate debt

Navigating the changing landscape of European real estate debt, the latest INREV topical paper, reveals several unique insights into the market.

• Notable deleveraging of European real estate since the global financial crisis. Average leverage across the 350 funds in the INREV Quarterly Fund Index stands at below 25%
• Low loan-to-value was supported by over a decade of strong capital growth, beyond supply-demand dynamics
• A higher for longer interest rate environment will push up managers’ costs to leverage or maintain leverage. INREV’s unique data set from the Asset Level Index reveals that the debt service coverage ratios (DSCR) have already experienced notable falls
• Shift to alternative lenders in search of financing will not only increase the diversity of the European real estate lending market but should also result in more stability

Download the paper below, and read our latest Debt Vehicles Universe report for more insights.