IEIF and PwC Strategy& publish the first market study on real estate financing for professionals
In an environment characterised by particularly high real estate investment volumes in France, the debt market plays a key role. It is therefore essential to gain a better understanding of the debt market, both in terms of the volume of outstanding debt and the dynamics of production.
Studies have been conducted for several years in the United Kingdom and Germany. France, Europe’s third-largest investment market, needed a similar tool.
Produced jointly by the IEIF and PwC Strategy&, this first market study on the subject was carried out with the contribution of the main players in real estate financing. It covers a representative sample of EUR 55 billion in outstandings and EUR 20 billion in new business in 2018.
It provides answers to the following questions :
What are the characteristics of real estate financing for professionals in France in terms of real estate products, players and geographical locations?
What are the differences and complementarities between banks and debt funds?
How to assess the main performance indicators: covenants, margins, etc. ?
What are the main findings regarding the pricing strategy of financiers?
How is the French market positioned in relation to the British and German markets?
The summary provides the main answers to these questions and shows that the French real estate debt market for professionals is dynamic, highly secure and homogeneous.