The ongoing coronavirus crisis is now also reflected in the German Real Estate Finance Index (DIFI) of ZEW and JLL. In the second quarter of 2020, the sentiment indicator fell by 37.8 points to a current level of minus 56.7 points, with both the assessment of the current financing situation and the financing expectations for the coming six months having declined significantly. The variety of economic consequences and the uncertain impact of national and European economic stimulus packages have pushed the index to its lowest level since the survey began in 2011.

Due to the coronavirus crisis, the sentiment indicator of the ZEW and JLL declines to minus 56.7 points.
Average assessment of the current situation and expectations for the five sectors of the real estate market (office, retail, logistics, residential properties and hotels). Values above zero indicate an improvement in the financing situation, while negative values indicate a decline.

The financing situation has deteriorated significantly for all segments. The sub-indicator reflecting the assessment of the financing situation in the retail sector, which was already at a low level before the COVID-19 crisis, has fallen particularly sharply. In contrast, the situation for logistics properties is assessed less negatively. The reason for this is the increase in e-commerce in recent months. 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.

The German Real Estate Finance Index (DIFI)

The German Real Estate Finance Index (DIFI) reflects survey participants’ assessment of the current situation (including the previous six months) of and expectations (for the coming six months) for the commercial real estate financing market. It is conducted on a quarterly basis and calculated as the average value of the balances between the following segments: office, retail, logistics, residential properties and hotels. The balance for each segment is the difference between the percentage of participants who are optimistic and the percentage of participants who are pessimistic about the current state and future development of financing conditions in the German real estate market. The DIFI is a survey conducted and published by Jones Lang LaSalle (JLL) and the ZEW – Leibniz Centre for European Economic Research. 27 experts participated in the May 2020 survey.

Date

25.06.2020

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