The European commercial real estate debt financing market is showing signs of renewed recovery, according to CBRE's European Lender Intentions Survey. Some 72% of European lenders plan to increase their volume of new loans in 2026 compared with 2025, while only 7% expect a decline. The survey, which gathered responses from 134 lenders between 18 March and 28 April 2026, reflects a stabilisation of the outlook amid ongoing geopolitical tensions.
"Lenders' growing willingness to provide capital is a fundamental impulse for the market. In the Czech environment, it is fairly common for investors to use leverage as an effective tool for increasing the return on their own invested funds. This strategy is the dominant approach for the vast majority of domestic real estate funds," said Jakub Štěpán, head of valuation at CBRE for the Czech Republic and the CEE region.
Despite optimistic lending plans, the market remains cautious about external risks. Geopolitical uncertainty is the top concern for 74% of respondents, up from 69% in 2025 and 37% in 2024. Uncertainty over interest rate trajectories is cited as the second-largest threat by 47% of lenders, followed by rising construction costs. "Current geopolitical and macroeconomic developments have a direct impact on the cost of financing. For investors, it is therefore absolutely critical at present to set conservative and sustainable loan parameters, so that the operational profitability of assets is secured even at higher costs," Štěpán explained.
Office buildings have moved from the margins of lender interest to third place in preferred real estate segments within a single year, with 38% of respondents reporting an improved attitude towards the sector. "We have been observing this recovery on the Czech market for some time as well. Domestic investors maintained their confidence in offices even at a time when they were under pressure abroad," Štěpán added. In parallel, 86% of lenders surveyed are willing to finance alternative asset classes, five percentage points more than the previous year, with interest focused on rental housing, private healthcare facilities and senior housing.
Refinancing of existing loans continues to dominate demand, accounting for 56% of total loan activity, while new construction and acquisitions represent 21% and 15% respectively. "Refinancing existing liabilities will be a key agenda item for most market participants in the near term. Given that the market finds itself in an interest rate environment different from the one in which the original loans were concluded, both banks and non-bank lenders are focusing on restructuring their portfolios, which is a necessary process for the market to maintain long-term liquidity," Štěpán concluded.
