ZEW DIFI Report Published: Market for Commercial Real Estate Financing Is Stable on a High Level
ResearchIn the second quarter of 2014, the German Real Estate Finance Index (DIFI) increased by 1.9 points compared to the previous quarter. Currently reading 24.9 points, the index is further stabilising on the high level of the previous quarters. The slight growth stems from the more positive assessments of the financing situation, which outweigh the slight decrease in the financing expectations. These are the key findings of the quarterly ZEW survey among real estate market experts concerning the real estate financing market in Germany. 47 experts participated in the May 2014 survey.
The optimism among market participants reflects the favourable overall economic environment in Germany. The current economic situation in Germany is seen as very stable, despite the simmering conflict in Ukraine, potential deflation risks and the resulting concerns about an economic slowdown. The ECB’s loose monetary policy also contributes to the favourable conditions for real estate financing.
The German Real Estate Finance Index (DIFI)
The German Real Estate Finance Index (DIFI) represents the assessment of the current situation (past six months) and the expectations (upcoming six months) of the participants in the survey concerning the real estate financing market. 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 current state and the development of the financing conditions on the German real estate financing market. The DIFI is jointly conducted and published by Jones Lang LaSalle (JLL) and ZEW.
