With inflation now close to central banks’ target levels, financial markets are not expecting any further rate cuts in the Eurozone. Increasing levels of government debt, US trade policy uncertainty and remaining inflation concerns continue to weigh on the bond markets and limit the chances of government bond yields’ tightening.
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.