DIFI Report by ZEW and JLL – Solid Sentiment But Tightened Refinancing Conditions for Banks
ResearchThe German Real Estate Finance Index (DIFI) has increased by 1.9 points in the first quarter of 2016 to a current reading of 15.0 points. The index thus continues the upward trend that has started in the previous quarter. The increase is attributable to a more favourable assessment regarding the financing situation of commercial real estate in the past six months. The corresponding balance of positive and negative assessments has improved by 6.8 points to a current reading of 31.7 points. The forecasts for the coming six months are less optimistic. On balance, the index has fallen by 2.9 points to a current reading of -1.7 points. Despite the slightly negative balance, a large majority of 70.8 per cent of the survey participants still expect financing conditions to remain consistently positive in the coming six months.
These are the key findings of the DIFI Report, a quarterly survey on the German market for real estate finance 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. The DIFI is a survey conducted and published by Jones Lang LaSalle (JLL) and the Centre for European Economic Research (ZEW). 50 experts participated in the survey in January/February 2016.
