DIFI Report by ZEW and JLL Released: Downward Trend Continues
ResearchThe German Real Estate Finance Index (DIFI) has decreased by 1.6 points in the third quarter of 2016 to a current reading of 6.7 points. After coming to a halt, the index continues the downward trend that has started in the fist quarter of 2015, although at a slower pace than in the previous months. The decrease is attributable exclusively to a less favourable assessment regarding the financing situation of real estate. This particularly holds for the financing conditions for residential properties. On average, the corresponding balance of positive and negative assessments regarding the financing conditions for all types of properties has fallen by 10.2 points. Despite this, the balance remains clearly in the positive, with 15.3 points.
These are the key findings of the DIFI Report, a quarterly survey on the real estate financing market in Germany carried out by ZEW in cooperation with JLL.
The German Real Estate Finance Index (DIFI)
The German Real Estate Finance Index (DIFI) reflects 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 in 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 financing conditions on the German real estate market.
