CLOUDY WITH A CHANCE OF SUNSHINE

Leading minds and decision-makers from real estate financing met on November 12th for the 11th Real Estate Finance Day 2024. Property owners, developers and commercial and institutional investors were there.

The good news first: The banks are basically open for business again. The external shocks of recent years that sent the real estate market into a downward spiral have been digested. However, regulatory requirements will continue to increase the demands on borrowers in the future; artificial intelligence can help with data analysis and the preparation of the investment template and at the same time save a lot of time.

The market consolidation for project developments is still ongoing and will not be completed for a long time. I still see us in the eye of the hurricane here, there is still a lot to be expected.

On the other hand, the residential asset class was the first to rehabilitate itself, followed by logistics; both are also increasingly attracting foreign investors again.

German institutional core investors are not expected to return until 2026, as they currently have a lot of funds tied up in the real estate sector.

In short: Cloudy with a chance of sunshine, as described in the FAP Real Estate Debt Report Germany 2024.

Or: The glass is finally half full again – instead of half empty.

Yours

Delano Kyles · CEO & Managing Partner