DIFI Report Published for the 4th Quarter of 2013: The German Real Estate Finance Index (DIFI) Continues its Upward Trend
ResearchIn the fourth quarter of 2013, the German Real Estate Finance Index (DIFI) has increased by more than three points compared to the previous quarter. With 28.0 points, the DIFI balance is now clearly in positive territory and even reaches its highest value since the launch of the survey in 2011.
The upward trend of the German Real Estate Finance Index (DIFI), which has been on-going since the beginning of the year, can be attributed to the favourable general economic development in Germany. Access to real estate financing is becoming easier as a result of the robust economic trend in Germany. Competitive pressure among providers has in particular intensified in core financing. This has favourable consequences for borrowers, since margins are declining and loan-to-value ratios are rising. The ECB’s recent cut of the key interest rate further benefits activities on the financing markets.
The German Real Estate Finance Index (DIFI)
The German Real Estate Finance Index (DIFI) represents the situation (including the previous six months) and expectations of the participants in the survey concerning the real estate financing market on a six-month horizon. It is conducted on a quarterly basis and calculated as the average value of the balances between the following four segments: office, retail, logistics and residential properties. The balances of the segments reflect the difference between the percentage of participants who are optimistic and the percentage of participants who are pessimistic about the development of the financing conditions on the German real estate financing market. The DIFI is a survey conducted and published by Jones Lang LaSalle (JLL) in collaboration with ZEW.
