The Eurozone crisis has left the real estate industry in limbo but lenders in the Midlands say they are ready to invest, according to a new report.
PwC and the Urban Land Institute’s annual Emerging Trends in Real Estate Europe 2012 report, which is based on surveys of more than 600 commercial property professionals across Europe, states that real estate investors are choosing to invest in safe havens rather than markets with high-growth potential.
The report also predicts that access to finance for commercial property development will remain challenging this year.
However, a poll of real estate lenders conducted by PwC in the Midlands has recently revealed that more than a third (38 per cent) are intending to make more finance available for commercial property development this year.
Speaking ahead of an industry event at PwC’s Birmingham office on Thursday, February 16, Alistair Reason, the firm’s Midlands-based real estate expert, said: “While access to finance for commercial property development remains a concern, there are some key examples of excellent investment opportunities coming to market as lenders seek to off-load some of their stock or package some of it as investment portfolios.
“The Midlands has seen some good examples of this last year and we are hopeful that more investment opportunities will be coming to market this year.”
ULI Midland Chairman and Head of Real Estate at Wragge & Co, Adrian Bland, added: “Despite the prevailing trends affecting the marketplace, it is clear that there are opportunities for those with equity and those who can persuade reluctant banks to lend.
"One opportunity which may have been overlooked is the provision of nursery units for young manufacturing companies”.