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Real estate

Looking past the chaos: the time for European real estate debt

Mohamed Ali
Director, Strategic Insights and Research
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Listen to this insight
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The global commercial real estate market has undergone a profound transformation since mid-2022. Rising interest rates and macroeconomic uncertainty have led to a significant repricing of real estate assets, with capital values correcting by approximately 20–25% across Europe, creating one of the most attractive entry points for real estate debt investment in over a decade.

Our latest research reveals why over 60% of institutional investors are planning to increase their real estate debt allocations, and how this asset class offers compelling risk-adjusted returns with lower volatility than traditional alternatives. From regulatory tailwinds to improved lending standards, discover the factors positioning real estate debt as a strategic portfolio diversifier in today's market environment.

Scatterplot showing real estate debt vs. global asset returns for 2025.

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Learn more about our global debt capabilities

Seeks exposure to U.S. core-plus commerical real estate debt seeking capital preservation and diversification through institutional-quality loans including mezzanine, B-notes and whole loans

Seeks exposure to continental European CRE debt through senior, whole and selected mezzanine loans, aiming to offer income-focused returns from a protected position in the capital structure

Seeks exposure to U.K. CRE debt through senior, whole and selected mezzanine loans, aiming to offer income-focused returns from a protected position in the capital structure

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