Skip to Content (press ENTER)
My Account
North America
Canada
Investor Type
United States
Latin America
Argentina
Brazil
Chile
Colombia
Mexico
Panama
Uruguay
Asia Pacific
Australia
China (中国大陆)
Investor Type
Hong Kong (香港 – 中文)
Investor Type
Hong Kong - English
Investor Type
Japan (日本)
Investor Type
Korea
Investor Type
Singapore
Investor Type
Taiwan (台灣)
Investor Type
Europe
Austria
Belgium
Denmark
Finland
France
Germany
Ireland
Italy
 
Luxembourg
Netherlands
Norway
Portugal
Spain
Sweden
Investor Type
Real Estate

A Unique Window for Real Estate Debt Investors

March 2025 – 4 min read

In this Q&A with Private Debt Investor, Rupert Gill discusses why European real estate debt presents a potentially compelling opportunity today.

How would you describe the current state of the European real estate cycle?

The market is in a much better state today than it was 12 months ago. Valuations have significantly repriced downwards, and this is now being reflected in both new acquisitions and refinancings. Real estate investment volumes picked up across the market in the fourth quarter of last year and, from a lending perspective, our volumes were up dramatically in the second half and continue to gather pace.

Real estate does get impacted by interest rate rises and the market took a little time to accept those. The office sector was also impacted by a structural shift that has led to a large correction in values. But a lot of property types continue to see strong occupier demand and despite yield shifts, the lack of supply in Europe is driving increased rents and cashflows. That is true in logistics and in residential, where a shortage of housing is an issue in many European markets. Even in office, we see a shortage of good-quality stock in good locations which means that, despite remote working trends, there is huge demand for not just new developments, but also renovated properties that off er very good amenities and have good ESG credentials.

On the credit side, there is more liquidity than prior periods coming from real estate private credit funds and insurance companies. Banks are also lending again, albeit with more constraints and more focus on their core borrowers and core assets in the best locations.

Want to read the full article?

View PDF
Headshot of Rupert Gill smiling at the camera.

Rupert Gill

Head of European Real Estate Debt Portfolio Management

Important Information

The document is for informational purposes only and is not an offer or solicitation for the purchase or sale of any financial instrument or service. The material herein was prepared without any consideration of the investment objectives, financial situation or particular needs of anyone who may receive it. This document is not, and must not be treated as, investment advice, investment recommendations, or investment research.

In making an investment decision, prospective investors must rely on their own examination of the merits and risks involved and before making any investment decision, it is recommended that prospective investors seek independent investment, legal, tax, accounting or other professional advice as appropriate.

Unless otherwise mentioned, the views contained in this document are those of Barings. These views are made in good faith in relation to the facts known at the time of preparation and are subject to change without notice. Parts of this document may be based on information received from sources we believe to be reliable. Although every effort is taken to ensure that the information contained in this document is accurate, Barings makes no representation or warranty, express or implied, regarding the accuracy, completeness or adequacy of the information.

Forecasts in this document reflect Barings’ market views as of the preparation date and may change without notice. Projections are not guarantees of future performance. The value of investments and any income may fluctuate and are not guaranteed by Barings or any other party. Examples, portfolio compositions, and investment results shown are for illustrative purposes only and do not predict future outcomes. Actual investments may differ significantly in size, composition, and risk. No assurance is given that any investment will be profitable or avoid losses. Currency exchange rate fluctuations may impact investment value.

Investments involve risks, including potential loss of principal. Past performance is not indicative of future results. Investors should not only base on this document alone to make investment decision.

This document is issued by Baring Asset Management (Asia) Limited. It has not been reviewed by the Securities and Futures Commission of Hong Kong.

Contact Us to Learn More

 

The form was successfully submitted.

 

Any data collected will be processed according to Barings’ Privacy Notice. You can unsubscribe at any time by clicking the link at the bottom of any promotional message we send, or by contacting us using the contact details set out in the Privacy Notice.