As of early 2026, market participants had anticipated a reduction in interest rates across the United Kingdom and Europe, hoping this shift would bolster the fragile rebound of the real estate sector. However, the persistence of elevated borrowing costs has altered the investment landscape. According to DRC Savills IM, this environment of higher-for-longer interest rates is now generating new prospects within the private real estate debt market. Investors are increasingly looking toward these alternative financing avenues as traditional lending conditions remain constrained by the current monetary policy stance. This transition highlights a strategic pivot for capital allocators seeking to navigate the ongoing challenges in property valuation and financing liquidity throughout the region.
Source : The Korea Economic Daily
