Total secured commercial lending is predicted to rise by 32% from an estimated £90bn in 2023 to £118bn in 2028, according to Rob Thomas, economist and principal researcher at the Intermediary Mortgage Lenders Association (IMLA).
While the turbulence evident across interest rates throughout 2023 has eased, debt and the cost of borrowing continues to be at peak levels – with a third of property developers, landlords and investors citing inflation (30%) and high interest/mortgage rates (27%) as the biggest challenge to plans this year, according to a new report from Together.
However, there are clear signs the commercial property market is adjusting to this high interest rate environment. According to Together, a major part of this adjustment is via the bullish appetite of commercial developers, investors, and landlords either exiting or diversifying portfolios to mitigate falling yields and revenues.
Real Estate Credit Investments Limited (LON:RECI) is a closed-end investment company that specialises in European real estate credit markets. Their primary objective is to provide attractive and stable returns to their shareholders, mainly in the form of quarterly dividends, by exposing them to a diversified portfolio of real estate credit investments.
