French real estate lending is dominated by a handful of large domestic banks, which have responded to the market’s cautious tone. Since the onset of the pandemic their willingness to lend has been highly dependent on the type of asset and associated risk, says Damien Giguet.
“There was a bit of a hole in the pipeline of origination in February and March,” notes Damien Giguet. “Now, we are seeing deals coming through again. I think this year will be more of a core and core-plus market rather than a value-add market because the lack of traditional finance is resulting in a very significant repricing of value-add assets. But there are big core and core-plus deals happening.”