'Real estate financing in 2021 will get better': expert

In the opinion of Marcin Wielgus, Director - Debt Financing, Hines Polska, the year 2021 should bring better conditions for debt financing, although banks will continue to be cautious when analyzing individual projects in detail. Given the low level of interest rates, which is likely to continue for an extended period, the market could create room for new players competing with banks as suppliers of debt. Examples include debt funds or insurance companies.

"Such entities are present in more mature markets and may appear more and more boldly in Poland, offering to finance for projects that are on the verge of banks' interest or directly competing with them in selected locations, sectors, or structures. It is true that non-bank financing is usually more expensive, but it's more flexible," Marcin Wielgus noted.

In the warehouse segment, the most attractive facilities – located in strategic locations on the map of the country – can count on the best credit terms. But the office segment is not without a chance for loans

"However, as long as the epidemic situation does not improve significantly, banks will continue to prefer projects with great potential – located in convenient, well-connected places, offering a high technical standard, as well as modern and flexible solutions, and also implemented by reputable companies. pre-let level pandemic,” the expert believed.

Banks will probably continue to pursue a restrictive lending policy with regard to commercial real estate for a long time to come. On the other hand, hotels have a chance, despite the fact that last year it was virtually impossible to obtain financing in this segment.

"In 2021, the situation may change. Banks should start lending to such facilities as soon as their operations are restored, especially since there is still a shortage of hotels of the appropriate standard in Poland. Additionally, after sitting at home for a whole year, Poles have a great appetite for travel, and for safety reasons, many people will probably choose domestic tourism," Marcin Wielgus said.

(WBJ)