This trend is also clearly reflected in the domestic environment, where demand for debt financing has been consistently strong. "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," says Jakub Štěpán, Head of Valuation at CBRE for the Czech Republic and the CEE region.
Key Challenges: Geopolitics and Higher Debt Burden
Despite optimistic plans regarding debt financing volumes, the market remains cautious towards external risks. Geopolitical uncertainty has become the leading concern for 74% of respondents, confirming its long-term upward trend – while in 2024 it was perceived as a material risk by 37% of lenders, last year the figure stood at 69%. Lenders view uncertainty over the future development of interest rates as the second-largest threat (47%), reflecting central banks' cautious approach to loosening monetary policy. The third factor is rising construction costs, which must be taken into account when valuing projects.
"Current geopolitical and macroeconomic developments have a direct impact on the cost of financing. Higher interest rates limit the effectiveness of leverage and create pressure for downward repricing of properties. 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 explains.
Office Buildings Back on Investors' Radar
Lenders' sector preferences have undergone a significant transformation. Within a single year, office buildings have moved from the margins of interest to third place in the ranking of the most favoured real estate segments. According to the survey, as many as 38% of lenders report an improved attitude towards offices, indicating a return of confidence in the long-term value of modern office space.
"We have been observing this recovery on the Czech market for some time as well. It should be emphasised, however, that the position of offices in the Czech Republic has been significantly stronger over the past two years than on many Western European markets. Domestic investors maintained their confidence in offices even at a time when they were under pressure abroad. In the coming weeks, we will be analysing specific data for the first half of the year, which will confirm the resilience of this segment through key completed transactions and projects being prepared for delivery before the end of the year," Štěpán adds.
In parallel with offices, the survey confirms a structural shift in lenders' portfolios towards greater interest in alternative segments. A total of 86% of the companies surveyed are willing to finance these asset classes, 5 percentage points more than last year. Interest is focused primarily on rental housing projects, private healthcare facilities and senior housing. Although these areas are becoming a priority and lenders are increasingly targeting them, in terms of the overall volume of capital in real estate financing they still represent a relatively small – albeit rapidly growing – segment.
"Alternative segments are becoming a fully-fledged part of institutional portfolios. Sought-after assets today include segments that banks previously financed only in isolated cases, such as senior housing or specialised healthcare facilities. Lenders see strong demographic potential and income stability here, which naturally leads to a willingness to offer more attractive lending terms for such projects," Štěpán says.
Refinancing as a Stabilising Element of the Market
Despite the visible increase in lenders' willingness to finance new projects, the European real estate market continues to be dominated by the need to refinance existing loans. This activity accounts for 56% of total loan demand, while new construction and direct acquisitions represent 21% and 15% of demand respectively. This imbalance is a natural consequence of the current market situation, in which the volume of the existing commercial real estate stock is many times greater than the pace of new construction.
"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, this topic is of the utmost importance. Both banks and non-bank lenders are therefore focusing on restructuring their portfolios, which is a necessary process for the market to maintain long-term liquidity," Štěpán concludes.
More About the Survey
The survey was conducted between 18 March and 28 April 2026. A total of 134 respondents from among European lenders took part, providing their outlooks on lending expectations, financing conditions and preferred sectors for 2026. All responses were collected after the outbreak of the conflict in the Middle East, which defines the current perception of macroeconomic and geopolitical market risks.
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm and a premier provider of critical infrastructure services. The company has more than 155,000 employees serving clients in more than 100 countries. CBRE serves clients through four business segments: Advisory (leasing, sales, debt origination, mortgage servicing, valuations); Building Operations & Experience (facilities management, property management, flex space & experience, critical infrastructure); Project Management (program management, project management, cost consulting); Real Estate Investments (investment management, development). Please visit our website at www.cbre.com