Closer scrutiny likely for riskier proposals as deal speed rises

The current slow pace of deal making is likely to pick up in the third quarter as the property market becomes acclimatised to the new environment of rising inflation and interest rates.

So says Assem El Alami, head of international real estate finance at property and mortgage bank Berlin Hyp.

El Alami said that after a promising first quarter the outbreak of war in Ukraine slowed things down significantly. “I would suspect that will last until well down into the third quarter. However, I would think that things will then pick up. We are getting used to the environment and how to deal with inflation and rising interest rates.”

Furthermore, he added that investment and asset managers will be under pressure to deploy money before the end of the year, which will also increase activity.

However, El Alami also warned that when it comes to higher risk or development projects, “that’s where banks get a little bit more cautious and conservative”.

Click on the video to watch the full interview or listen to the podcast below.