Poland 7th in Europe in real estate lending

Lending activity increased by 55 percent over the past year, “with markets across Europe witnessing increased deal flow, lender competition and pricing compression,” according to a report by real estate advisory Cushman & Wakefield. The top three locations of assets secured by lending in 2014 were the UK (45 percent of all assets), followed by Germany (17 percent) and France (9 percent). Poland came in seventh, preceded also by Spain, Italy, and the Netherlands. The activity covered by the report includes new investment lending, new development lending and existing loan refinancing. The increase recorded in 2013 compared to 2012 data was by 31 percent. In Poland, the loan-to-value ratio stood at 60-70 percent, with loan margins at 1.75-2.50 percent, slightly lower than a year earlier. Liquidity in the market has also improved, as the country now has a scoring of 4 (out of 5), up from 3 a year earlier. The availability of mezzanine capital is seen as good.