The global commercial real estate market has undergone a profound transformation since mid-2022, with rising interest rates and macroeconomic uncertainty driving a significant repricing of assets—capital values have corrected by approximately 20–25% across Europe, creating one of the most attractive entry points for real estate debt investment in over a decade. Our latest research reveals why over 60% of institutional investors are planning to increase their real estate debt allocations, exploring how this asset class offers compelling risk-adjusted returns with lower volatility than traditional alternatives and examining the regulatory tailwinds and improved lending standards that position real estate debt as a strategic portfolio diversifier in today’s market environment. Read the full report to discover why this represents a compelling opportunity for institutional investors.
The high inflation and interest rate environment since mid-2022 have negatively impacted strategies across public and private markets. Despite this, investors continue to be attracted to private debt markets instruments including CRE debt, with most investor types choosing to allocate more to CRE debt relative to 2019, and public and private pension funds showing the largest increase in allocations.
You can now read the full whitepaper at the link below
