DIFI Report by ZEW and JLL – Solid Sentiment But Tightened Refinancing Conditions for Banks

The German Real Estate Finance Index (DIFI) has increased by 1.9 points in the first quarter of 2016 to a current reading of 15.0 points. The index thus continues the upward trend that has started in the previous quarter. The increase is attributable to a more favourable assessment regarding the financing situation of commercial real estate in the past six months. The corresponding balance of positive and negative assessments has improved by 6.8 points to a current reading of 31.7 points. The forecasts for the coming six months are less optimistic. On balance, the index has fallen by 2.9 points to a current reading of -1.7 points. Despite the slightly negative balance, a large majority of 70.8 per cent of the survey participants still expect financing conditions to remain consistently positive in the coming six months.

These are the key findings of the DIFI Report, a quarterly survey on the German market for real estate finance by ZEW in cooperation with JLL.