Real Estate
Europe Is Bracing for a Sharp, Abrupt Real Estate Reversal
- Borrowers face crunch as valuations fall and lending tightens
- New rules, market changes may make downturn steep but short
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Turmoil at trophy properties in London and Frankfurt offer a glimpse of the damage awaiting European real estate investors as they face the sharpest reversal on record.
From a fraught refinancing process for an office building in the City of London to the strained sale of the Commerzbank Tower in Germany’s financial hub, investors are scrambling to find ways to bridge financing gaps as lending markets seize up from rapidly rising interest rates.