News / From the associates

Financing conditions for European commercial real estate continue to improve. According to CBRE’s 2026 European Lender Intentions Survey, 76% of lenders expect to increase their new lending activity over the next twelve months, while only 4% anticipate a decline. Competition among lenders is intensifying, driven by falling interest rates, stabilizing property valuations, and gradually improving market liquidity. Banks remain the primary players, but the role of debt funds, insurance companies, and other alternative lenders continues to expand.

Logistics remains the preferred sector, cited by 76% of respondents as the most attractive asset class, followed by residential (71%) and prime office (53%). Interest in data centers, student housing, and healthcare is also growing. Retail shows the most significant improvement in sentiment compared to the previous edition of the survey, although interest levels remain lower than for other asset classes. Lenders continue to be more selective regarding secondary office properties. In terms of financing conditions, most lenders expect credit spreads to stabilize or narrow slightly and anticipate greater availability of capital for core and value-add transactions. The margins applied to senior loans for prime office properties have narrowed by 25 basis points compared to the previous year, while for retail, there is greater consensus among respondents regarding competitive spreads, signaling a more uniform assessment of the sector’s outlook. Leverage levels remain generally prudent, with loan-to-value ratios ranging between 50% and 60% for core assets, while ESG criteria are playing an increasingly important role in credit approval processes.

On the risk front, 74% of lenders identify the geopolitical context as the main source of uncertainty for the debt market, followed by expectations regarding interest rate trends (the second most significant risk). Despite this, financing terms remain competitive and are characterized by a selective approach to creditworthiness assessment. Property quality, robust cash flows, and sustainability characteristics therefore continue to be the main factors in risk assessment and the determination of financing terms.