Office space is the most attractive asset for European lenders | 9 October 2012
European property developers are more likely to secure finance for the construction of office space than they are for any other type of building.
A new study compiled by EC Harris has suggested that bankers in Europe are more willing to lend to those developing office space in the next five years.
According to property-magazine.eu, 26 per cent of bankers polled in the study cited a preference to lend to office developments. Twenty-one per cent said they’d prefer to lend to retail developments, whilst the same figure stated they’d like to lend to residential developers.
Hotels and student accommodation were amongst the least popular asset types for bankers.
In an interview with propertyeu.info, EC Harris’ head of lenders and investors, Matthew Cutts, stated that securing finance for property development was still very much possible – in spite of the current economic climate.
He said: “Whilst conditions remain difficult, there are still opportunities for developers seeking development funding from banks. Pre-let assets, particularly offices, are the most desirable for bankers, offering a stable return, over riskier, speculative developments.”
Lenders from 29 banks across eight countries were surveyed in the study, with German and British bankers the most optimistic about lending to property developers in the next five years.
Written by Joe Elvin on behalf of Qube Global Software
While posted by Qube Global Software all views expressed are not necessarily those of the company. All facts are verified where possible directly by the author.
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