PIMCO Prime Real Estate’s chief executive François Trausch predicts a surge in real estate debt market activity in 2026 as liquidity returns, according to the Spring issue of REC Europe. The firm, managing a €23 billion real estate debt portfolio, anticipates rising transaction volumes and acquisition financing. Trausch emphasizes that post-refinancing cycles, lenders face a pivotal shift toward originations after years of consolidation.

Narrowing bid-ask spreads across major asset classes signal improving market dynamics, unlocking dealflow opportunities. Trausch notes this shift could reshape lender strategies, particularly for non-bank institutions seeking higher returns in a competitive environment. The 2026 forecast contrasts with previous years dominated by refinancing, indicating a structural market transformation.

The PIMCO strategist highlights Europe’s property debt market as a key area for growth, with corporate credit comparisons showing real estate’s potential for stable returns. He advises lenders to adapt to evolving borrower needs and regulatory changes, stressing the importance of agile capital deployment.

Trausch’s insights underscore the sector’s evolving landscape, urging investors to prioritize strategic positioning in the coming year.