Banks with fewer resources to allocate to real estate financing will favour a risk / return ratio that is more advantageous for them. They will go much more readily towards core / core + segments rather than value-add operations, says Damien Giguet.
The world of European real estate financing is mainly driven by banks, despite the rise of alternative financiers. However, because of the health crisis, they have been forced to make provisions for the difficulties encountered by some of their business sectors, which in turn impacts their available equity. All their business lines are impacted; real estate like the others.