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Falling Property Values Create $55 Billion Funding Shortfall in Europe

  • Lenders advancing lower credit ratios as borrowing costs rise
  • Funding gap from price falls rose €8 billion since September
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Falling values are the latest headache for landlords in Europe who need to refinance their debt. It’s a problem for their lenders too.

There’s a gap of €51 billion ($55 billion) between the amount owed by commercial property owners across Germany, France and the UK and the credit likely to be available for refinancing when the borrowings mature, according to research by AEW Europe SA.