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Property debt gap to double
TOUGH new capital rules in Europe are set to cause the funding gap in property-backed debt to double over the next two years, according to research out today.
DTZ estimated that Europe’s debt funding gap will widen to $182bn by 2013 as banks, under pressure to increase their capital ratios, shy further away from exposing themselves to the property sector.
The research predicts that insurers and non-traditional lenders will go some way to plug the gap while the banks recapitalise.