Intelligent Investment
European Lender Intentions Survey 2026
June 16, 2026 5 Minute Read
Overview
European lenders continue to view 2026 with confidence, despite an uncertain geopolitical backdrop. There is strong appetite to lend and sector sentiment has improved across the board, with c.€70bn of expected origination volume captured in this year's survey of 134 lenders across Europe.
Key Findings
- Lending activity is set to rise. 72% of respondents expect to increase their origination activity year-on-year – with only 7% anticipating a decline. This sentiment is consistent across both bank and non-bank lenders, pointing to robust debt availability in the market.
- Office makes a significant comeback. Offices have risen from sixth to third in lenders' preferred sector rankings – the most notable shift in this year's survey, reflecting renewed confidence in prime office assets after several years of subdued interest.
- Geopolitical uncertainty is the number one concern. 74% of lenders identified an uncertain geopolitical landscape as their top challenge – up from 69% in 2025. Uncertainty around the path for interest rates ranked second, reflecting ongoing debate around potential rate hikes.
- Development lending appetite is growing. 69% of lenders are willing to underwrite development loans in 2026, up from 60% in 2025. Pre-let schemes are the most preferred structure, though 43% of lenders showed appetite for speculative development.
- Loan terms are broadly stable – with some notable shifts. Median LTV ratios for prime Offices, Hotels, and Data Centres increased year-on-year. Office loan margins also compressed, in line with improved sentiment toward the sector.
Top Sectors for Lending in 2026
Living
Retains top spot
Industrial & Logistics
Holds second
Office
Up from 6th in 2025
PBSA
Stable
Hotels
Stable
Retail
Largest sentiment gain
Sustainability
Sustainability is now a baseline lending requirement for most lenders
Most lenders – two-thirds (66%) – will not lend against assets that fail to meet sustainability criteria or do not have an improvement plan, while just 20% say sustainability plays no role in their lending decisions. Banks are leading the way: only 13% report that sustainability doesn't influence their decisions, compared with 29% of non-bank lenders. Margin adjustments are increasingly common, with lenders both rewarding compliant assets and penalising non-compliant ones.
Download the full report
134 lenders. 7 sectors. The complete picture of European debt market intentions for 2026.
