LONDON, Nov 28 Reuters MG Real Estate forecasts it is a matter of time before global property markets face greater volumes of forced selling, with banks increasingly reluctant to refinance troubled or lower quality assets at current interest rates.

Property developers in China, Germany and Sweden have in particular suffered as a result of a sharp rise in borrowing costs in recent years, with some projects financed at rockbottom rates now close to, or breaching, key loan terms.

We had it really good in the last 25 years but now financing costs are higher and returns will have to come either from rental growth, or from adding value to properties, Jose Pellicer, head of investment strategy at MG Real Estate said.

We are in a new period of real estate investment that will require a new mindset, he told Reuters before the publication of the firm39;s Global Real Estate Outlook on Tuesday.

Pellicer said a recovery in the Chinese market would likely take time, although its troubles were cyclical rather than structural and key growth drivers like urbanisation were intact.

In Europe, Germany would likely see the largest volume of forced property sales, Pellicer predicted, with the market reeling more than others from higher costs of real estate debt and a sharp repricing of assets.

Nearly 40 of outstanding British commercial real estate loans are due to mature in 2024 and 2025, where average real estate values have fallen by over 20 since mid2022, the report said, citing…