- European commercial real estate market is facing rising costs and post-Covid workplace changes.
- Rapid increase in borrowing costs due to central banks raising interest rates to contain inflation.
- Property prices have already fallen sharply in recent months.
- European real estate values could fall by up to 40% by the end of 2024.
- Lower-grade office buildings are first in line to take losses.
Financial Times — World — Commercial Real Estate — Property Sector — European Banks — Commercial Property
European commercial real estate: the cracks are starting to show
European commercial real estate market is facing rising costs and post-Covid workplace changes, leading to fears of liabilities for banks and investors as they contend with a rapid increase in borrowing costs.