News / From the associates

In this in-depth analysis, Deloitte highlights how the European real estate finance market is undergoing a period of profound transformation, driven by regulatory changes, a funding gap that will remain significant over the next three years, and the growing role of alternative lenders. In Europe, bank lending remains dominant, accounting for over 80% of commercial real estate financing, with a total outstanding balance of approximately 1,400 billion euros in 2024. The new CRR3 framework—which took effect in 2025 —which penalizes exposures with LTVs exceeding 60%—is, however, pushing banks to focus their activities on more stable assets with less leverage, thereby creating opportunities for non-bank operators and alternative financing solutions.

The estimated funding gap of approximately 86 billion euros (equivalent to 13% of debt maturing between 2025 and 2027) represents a key point of discontinuity, particularly significant in markets such as Germany and France (18–19%) and about 12% in Italy, where more than half of the gap is concentrated in office real estate. The mismatch between credit supply and demand has already fueled the growth of alternative lenders and the emergence of more flexible financing structures, including backleverage transactions and direct lending solutions. This scenario is gradually reshaping the architecture of the real estate credit market, including at the national level. Real estate securitizations 7.2 are, in fact, playing an increasingly central role as a tool for raising capital and managing real estate assets.

The 7.2 securitization market has grown significantly, rising from 55 vehicles in 2024 to 67 in June 2025, with total outstanding commitments of approximately 3.8 billion euros and an average annual growth rate of 35% since 2022. The average size of the vehicles, at approximately 60 million euros, confirms their adaptability to the Italian market, which is characterized by small- to medium-sized transactions. Although regulatory and liquidity risks are still perceived as significant, there remains strong room for growth for this vehicle: 68% of banking operators now report a high level of familiarity with the instrument, but only 40% have actually participated in transactions, with a higher presence of challenger banks (57%) compared to traditional banks (31%).