The 8th edition of KPMG's comprehensive survey, which measures the sentiment for bank financing in the real estate sector in 17 countries across Europe.
KPMG's Property Lending Barometer 2017 aims to provide an analytical overview of the current approach of banks to real estate financing in Europe. The following countries are represented in the 2017 survey: Austria, Bulgaria, Croatia, Cyprus, the Czech Republic, Germany, Hungary, Ireland, the Netherlands, Poland, Romania, Serbia, Slovakia, Spain, Sweden, Turkey and the United Kingdom. The survey categorizes these countries into three distinct groups—“dominant,” “established,” and “other”—according to factors like their GDP, population, and risk profiles.
Increasing lending activity foreseen
This year's Property Lending Barometer bears moderately good news for many property markets and the increased lending activity witnessed in recent years in Europe is likely to continue in 2017. The greater availability of finance is being bolstered by eased lending conditions and sustained demand across all loan categories, according to the European bank representatives who participated in KPMG's study.
KPMG survey finds that the economic outlook across Europe is fairly upbeat, exhibiting favorable economic indicators like low inflation, decreasing unemployment and increased investment—all factors potentially bolstering activity in the real estate sector. KPMG’s Nikola Kedov, Associate Director in Advisory, comments on the lending market in Bulgaria: “The Bulgarian real estate market has generated significant international interest and the outlook remains mostly positive.”
Banks` sector preferences in providing financing
Unlike in previous years, the preferred asset class in all country groups is residential, followed by office. The hotel sector remains the least desirable by banks in terms of financing.
KPMG's Property Lending Barometer 2017 also includes sections on prospects for real estate portfolios, analyses how much banks are focusing upon financing real estate projects and the disposal of loan portfolios, among other crucial topics. The publication provides in-depth profiles of how property lending is taking place in each individual market included in the survey – crucial information for those looking to do business in those countries.
For further insights on the lending market in Bulgaria and Europe, see KPMG’s Property Lending Barometer 2017.
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