A research report by AEW Europe SA revealed that declining property values in Europe create a funding shortfall.
The drop in property values could become a problem for property owners looking to refinance their debt.
- According to the report, the funding shortfall could amount to €51B (~$55B) for commercial property owners in Germany, Frace, and U.K.
- The total shortfall includes €32B (~$35B) caused by the price decline, which increased around €8B (~$8.8B) since last September.
- AEW Europe's data revealed that 45% of the funding gap is in Germany, 33% in the U.K., and 22% in France.
- Hans Vrensen, head of research and strategy at AEW Europe, said property owners should be more proactive about restructuring their loans.
