Sentiment Indicator for Commercial Real Estate Financing Remains in Negative Territory

In the second quarter of 2019, the German Real Estate Finance Index (DIFI) by ZEW and JLL decreased by 1.4 points to a current reading of minus 11.1 points, thus remaining in negative territory. The majority of the experts surveyed see no change in the financing situation, either in the past or in the coming six months. However, those expecting changes in the financing situation gave a predominantly pessimistic assessment. The sentiment indicator for commercial real estate financing is thus also reflecting the subdued economic development in Germany.

The experts’ assessments of the financing situation and expectations in the stationary retail sector, which have been declining almost continuously since the end of 2016, remain negative. Only with regard to the conditions on refinancing markets did the respondents give more positive – but nevertheless cautious – assessments. These are the key findings of the DIFI Report, a quarterly survey on the commercial real estate financing market in Germany carried out by ZEW in cooperation with JLL.