Over the past year, many investors held their breath as tightening financial conditions squeezed deal flows. In recent months one key signal has shifted: transaction activity and certain property metrics are showing tentative signs of improvement, suggesting parts of the market may be waking from dormancy. For example, a recent report noted that one indicator finally ‘ticked up’ after months of stagnation, hinting that demand may re-enter the CRE space.
More than half of surveyed owners report significant loan maturities looming in the next year, and many are turning to alternative debt, private credit, equity, or structured finance, to navigate around constrained traditional banking avenues. Meanwhile, underwriting assumptions are being reset: exit yields are being repriced, stress tests are harsher, and capital structures more conservative.
Where opportunities are emerging, they tend to cluster in asset types with structural tailwinds, data centres, logistics, life sciences, housing, and other ‘operational real assets’ that provide income stability and relevance in a digitising economy.
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.