Bond issuance among the top 10 biggest listed real estate companies in Europe has increased sixfold since the financial crisis, according to Scope Ratings.
Between 2009 and 2014, the volume of bond issuances soared from €1.3bn (£943m) to €8.5bn, and Scope predicted that issuances would reach €10bn by the end of this year.
Real estate companies are increasingly favouring capital markets over banks, whose lending is more constrained.
The top 10 companies saw the portion of their liabilities from banks fall from 54% in 2009 to 37%. Hammerson had the lowest, at just 10%.
“The capital market requirements on companies have proven clearly more efficient than the criteria banks apply when granting loans,” said Philip Wass, associate director of corporates at Scope.
Investment-grade companies can typically secure more competitive terms through capital markets, he added. In June, British Land launched a £350m convertible bond at a zero coupon.