DIFI Report by ZEW and JLL – Despite Falls the Estimated Financing Situation for Real Estate Continues to Be PositiveResearch
Following a temporary high at the end of 2015 and beginning of 2016, the German Real Estate Finance Index (DIFI) has once again reached the levels seen in Autumn 2015. With 8.5 points, however, the index remains 20 points lower than it was this time last year. In the second quarter of 2016, the index fell by 6.7 points. This fall is due not only to less positive judgements of the financial situation in the last six months, but also to increasingly pessimistic estimations of the financial situation for the coming six months. The balance of positive and negative estimates in regard to the development of the financing situation in the German real estate market has fallen by 6.2 points. Despite this, it remains clearly in the positive, with 25.5 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.