Property Lending Barometer 2025: Banks' Outlook for Real Estate Lending in CEE (KPMG Switzerland)

Summary

• In total, 47 banks took part in the survey, which was collected in October and November 2025 across Central and Eastern Europe, with Austria as a reference market.p.6
• EUR 5.3 billion was invested in CEE commercial real estate in the first half of 2025, a 52% year-on-year increase.p.13
• 36% of banks report an increased focus on real estate financing, compared to 25% in 2024.p.17
• 85% of respondents are not willing to provide non-senior debt such as junior or mezzanine, down from about 93% last year.p.19
• About 77% of respondents are ready to join a lending syndicate, up from 69% in 2024.p.19
• Over 66% of surveyed bankers expect their real estate portfolios to expand over the next 12 to 18 months, compared with 58% last year.p.22
• The average share of fully compliant real estate loans has risen from 91% to 93%.p.33

Key insights

1. The ECB's total rate cut since the beginning of 2025 reached 200 basis points, with the last reduction in June 2025.p.11
2. European real estate investment volumes in 2025 are projected to approach EUR 220 billion, surpassing 2024.p.12
3. By the end of Q3 2025, CEE investment volumes reached about EUR 7.0 billion, with full-year volumes projected around 20% above 2024.p.13
4. Office properties accounted for approximately 30% of CEE investment volume, followed by industrial and logistics at 28% and retail at approximately 20%.p.13
5. Czech investors accounted for 34% of CEE investment in Q1-Q3 2025, up from 30% in Q1-Q3 2024.p.14
6. 83% of respondents describe in-house technical due diligence as highly important or very important.p.19
7. 59% of banks report a higher average loan size than last year, while 32% say it stayed about the same.p.21