The levels of defaults on real estate loans in Europe have reached their highest levels in about 10 years, according to a study by the law firm "Will, Gotshal & Manges", which prompted global investment banks and financial analysts to warn of a future shock that will be more painful, especially for real estate owners.
While global markets are staring at U.S. banking and commercial real estate indices for fear of sudden collapses in light of last month's banking crisis. The blow could unexpectedly come from the European market, where real estate market cracks are widening amid rising loan defaults, following rising interest rates, threatening up to 1.4 trillion euros ($1.52 trillion) in debt and putting the banking sector in a big bind.
Source (Al-Araby Al-Jadeed Newspaper, Edited)
