Why European real estate credit looks safer than equity in the new cycle

This episode is sponsored by AllianceBernstein

European real estate is entering a new phase, with values reset, interest rates stabilising and investors adjusting to a world where ultra-low borrowing costs are no longer the norm.

In this episode of The PERE Podcast, Clark Coffee, chief investment officer of AllianceBernstein’s European commercial real estate debt business, discusses why this shift is changing the balance between equity and debt investing and why downside protection has become paramount.

He notes that one challenge in today’s environment is trying to understand what assets might be worth if business plans fail or markets shift – a task made more urgent by rapid changes driven by AI, remote working and evolving real estate use.

Against this backdrop, Coffee sees European real estate debt becoming more popular among investors as a secure source of income.

To read more about European real estate debt, check out the latest deals in Real Estate Capital Europe's lending database