01.03.10
There is improving sentiment among European banks in lending for prime real estate, according to CB Richard Ellis’ latest Capital Markets Report.Following the recovery in the European real estate investment market in the latter half of 2009, driven predominantly by increased appetite from equity buyers and an improvement in capital values, banks now find themselves in a more confident position to lend. This shift in sentiment has subsequently led to increased competition amongst debt providers to offer improved lending terms on loans secured against prime real estate. Maximum loan size is generally increasing, with maximum LTVs also on the increase at around 60-70% when secured on prime real estate, whilst margins have fallen across most markets.
What is particularly worth noting is that this trend is not confined to the UK. We see a theme of consistency running throughout Europe, with Italy, the Netherlands and Spain also reporting an increase in maximum LTVs to 65-70%.
