Forced sales ahead for indebted global real estate markets -M&G

LONDON - M&G Real Estate forecasts it is "a matter of time" before global property markets face greater volumes of forced selling, with banks increasingly reluctant to refinance troubled or lower quality assets at current interest rates. Property developers in China, Germany and Sweden have in particular suffered as a result of a sharp rise in borrowing costs in recent years, with some projects financed at rock-bottom rates now close to, or breaching, key loan terms. "We had it really good in the last 25 years but now financing costs are higher and returns will have to come either from rental growth, or from adding value to properties," Jose Pellicer, head of investment str...Keep on reading: Forced sales ahead for indebted global real estate markets -M&G

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