KPMG Property Lending Barometer is a survey of real sector lending which has been prepared by KPMG regularly for 14 years now. It is based on the answers of bank representatives in the whole region, collected primarily via online questionnaires and in-depth interviews.
Property Lending Barometer is focused on bank financing of commercial real estate in Central and Eastern Europe. In the 14th edition 48 banks from Serbia, Bulgaria, the Czech Republic, Croatia, Hungary, Poland, Romania, North Macedonia, Slovakia, and Slovenia took part.
In 2023, it was the sharp increase in interest rates that had the strongest effect on banks and how they finance commercial real estate, followed by a negative economic development of the country where a bank operates and, to a lesser extent, the economic situation in the entire Europe and also lack of prime reals estate and development projects.
However, no significant spike in problem loans has been observed by the surveyed bankers, while the number of loans with minor problems has grown. In the long-term perspective, Czech and Serbian banks have the lowest percentage of problem loans in their portfolios, with the highest percentage of such loans found in portfolios of Bulgarian banks.
KPMG Property Lending Barometer shows that the surveyed bankers in the CEE region are carefully optimistic about what’s next for the real estate market and how banks finance it.
We hope that you will find it informative in supporting your future business decisions related to real estate financing.
