ING: Commercial mortgage activity on the increase - commercial mortgages

14 March 2007

Experts at ING have highlighted increased commercial mortgage activity in European markets, bolstered by positive economic growth, favourable conditions and increases in earnings.

It is predicted that real estate fundamentals will continue to show signs of health over the next one to two years, following increases in investment levels.

Timothy Bellman, global head of research at ING, explained the factors that will contribute to further growth.

"We are seeing an increase in both property investment trusts and commercial mortgage-backed securities, as real estate continues to outperform equity and bond markets in most major markets," he told IPE Real Estate.

Experts also highlight the fact that real estate has become established as an accepted asset class due to better transparency and a generally strong performance.

Looking ahead, it is thought that activity in the commercial mortgages sector could be set for an increase as investment in commercial property rises in Europe.

ING recently launched two separate $1 billion (£519.7 million) funds for the Asian market, including commercial buildings in China.