'A golden period': Seizing the moment in European real estate credit

This episode is sponsored by LaSalle and Nuveen Real Estate Liquidity is returning to European real estate credit markets. Growing confidence that interest rates have stabilized and prices have reset is encouraging debt investors to provide a steady flow of capital to sponsors. And that is helping to kickstart transaction activity. European banks are back with an appetite for new business. That means competition between lenders is heating up, especially to provide low-risk senior finance. Fewer lenders are stepping forward to finance more complex situations, though, creating an opening for debt funds as the market regains momentum. In this special episode, recorded in January 2026, Isabelle Brennan, senior managing director at LaSalle, and Christian Janssen, head of real estate debt for Europe at Nuveen Real Estate, pinpoint the lending opportunities available to private credit providers as the market enters a new cycle. The conditions are finally in place to generate an increase in borrowing for new transactions, not just refinancings, Brennan suggests. Meanwhile, lower pricing for loan-on-loan finance has seen an increase in the use of back leverage, which is helping debt funds generate attractive equity-like returns. Macroeconomic uncertainty caused the market to stall briefly in 2025, but the year ended with a surge of activity, says Janssen, and that has continued into 2026.