Interest rates

The ratings agency said many facilities were secured by overvalued property and had weak covenants.

Real estate market participants do not expect a significant immediate change in debt market conditions.

With the country set to elect a new governing party for the first time in 14 years, industry executives consider the implications.

Hopes that interest rates may have peaked are cheering survey respondents.

Conditions are ripe for lending, but barriers to entry in the industry remain high, delegates at PERE’s London event heard.

The Washington DC-based agency says the sector is a salient near-term risk to global financial stability.

A senior representative from the central bank played down the risks associated with banks’ commercial property exposure at the PERE Network Europe Forum this week.

Speaking at the PERE Network Europe Forum, the CEO and CIO of real estate at the asset management giant said Europe’s debt funding crisis is about to intensify.

CREFC Europe, INREV and the Alternative Credit Council hit back at ECB warnings about risks posed by commercial real estate.

The Bank of England has warned global falling property values could lead to losses for creditors, echoing concerns shared by the European Central Bank.