The sentiment among the various property sectors is by no means uniform, however. Hospitality owners are particularly positive, with an overwhelming majority expecting valuations to rise or remain stable. None anticipate a fall. Residential property developers have a similarly positive outlook and express a welcome for the role of initiatives such as the Land Development Agency and Approved Housing Bodies . Logistics asset owners also express an upbeat outlook.
Buildings that meet certain standards can also qualify for sustainable loans at advantageous rates. The European sustainable-loan market has experienced strong growth in recent years and will continue to gain relevance as regulatory conditions become more rigorous. Another positive development in the market is the increasing role being played by alternative lenders, which are providing welcome diversity to the debt pool.
The high prevalence of hedging among real-estate owners is an indication of growing sophistication as well as underlying financial strength. This bodes well for the future These buying opportunities are likely to arise as companies experience covenant issues, repayment issues or have difficulty refinancing their existing facilities due to, sustainability, valuation or repayment issues. The most-at-risk sector based on our survey and international sentiment is likely to be offices.