ZEW DIFI Report Published: Real Estate Market Players Remain Optimistic

In the first quarter of 2014, the German Real Estate Finance Index (DIFI) is at 23.0 points and has thus reached its third-highest level since the survey was launched in 2011. Compared to the previous quarter, however, the index has decreased by five points. This can be equally attributed to the slight slowdown in the improvement in the financing situation as well as to 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. 38 experts participated in the survey in January and February 2014.

The DIFI level is in line with the general optimism on the German real estate market. Against the backdrop of a low interest rate environment and a lack of investment alternatives, institutional investors with a strong equity capital ratio have long been considering real estate to be a beneficial asset class. The focus on German real estate has also increased due to the robust economic development. The overall economic situation in Germany has further improved recently, and a change in the ECB’s monetary policy seems unlikely.