BETWEEN PRESSURE AND DEAL OPPORTUNITIES
Insights from the Real Estate Finance Day 2025

The Real Estate Finance Day 2025 once again offered a valuable overview of the current state of real estate financing – a topic that is also central to our daily work at RHE Grundbesitz. Many developments confirm what we have long observed in our discussions with investors, banks, and alternative financiers: The market is in a phase of realignment that is challenging but also opens up new opportunities.

A clear reality check at the start
Professor Hanspeter Gondring FRICS immediately captured attention with his keynote address. His assessment: The industry faces further challenges, particularly due to delayed adjustments over the past two years. He called for more decisive action – an appeal we at RHE share. Many players now need to take action to position themselves solidly for the coming years.

Financing practice: What really matters now
The FAP Private Debt Report 2025 reflected many developments that we encounter in our current day-to-day business. Financiers are acting more cautiously and scrutinizing projects more closely with a view to realistic exits. We regularly observe that capital is generally available – but the demands on structure, documentation, and planning are increasing.

Whole loans are gaining importance, financing maturities are decreasing, and credit funds are increasingly positioning themselves as pragmatic and agile partners. This dynamic underscores the importance of our intermediary approach: We bring the right players together and structure projects so that they remain viable even under today’s market conditions.

Market sentiment: Stable, but still cautious
The industry continues to move in a sideways stabilization phase. A rapid turnaround is not in sight. However, for us as intermediaries, one important point is clear: Financing is being secured again – if communication is early, thorough preparation is ensured, and the right partners are involved. This is precisely where we see our added value for investors.

A significant obstacle to the market remains the length of financing processes. Delays arise from extensive due diligence, high regulatory hurdles, and limited resources in credit departments. Consequently, the need for alternative structures is growing – an area we are increasingly developing for our clients.

Restructuring & Refinancing Pressure: What the Industry Awaits
An increase in restructurings is expected for 2025/26. We also anticipate that more investors will have to consider portfolio adjustments, reorganizations, or sales. The refinancing gap until 2028 – around €50 billion – will further impact the market. However, large waves of non-performing loans (NPLs) are not expected; rather, many transactions will take place quietly and selectively.

Germany in International Comparison
A particularly interesting part of the event was the look at the USA and the UK. There, valuations were adjusted earlier – with the result that the markets are significantly more agile again. In Germany, we still see some reluctance, but this is precisely where opportunities arise for well-prepared buyers who bring realistic prices and stable business plans.

Structural Trends We Are Already Experiencing in Our Work
Many statements from the Finance Day confirm our daily observations:

• Banks are acting more conservatively and focusing on existing customers.
• Alternative financiers are becoming more important – especially for more complex structures.
• Hybrid financing options, such as combinations of senior, mezzanine, and debt fund solutions, are gaining in importance.
• Revitalizations, conversions, and ESG-compliant projects are in focus, as they ensure long-term financing.

These developments are opening up interesting entry points, particularly in Berlin and the wider German-speaking region, for investors who are flexible and recognize opportunities in the transformation.

Outlook: 2026 as a potential turning point
Many experts see 2026 as a realistic year for renewed increases in transaction volumes. For us at RHE Grundbesitz, this means: The crucial decisions are being made today. Those who remain proactive now, closely involve financing partners, and clearly define property strategies will be among the winners of the next market phase.

We support our clients on this path and look forward to working with you to seize the opportunities of this transition period.

Delano Kyles · CEO & Managing Partner