ZEW DIFI Report Published - Financing Conditions for Office and Logistics Real Estates Are Slightly Easing


During the fourth quarter of 2012, the market participants' expectations regarding financing conditions on the German real estate market have hardly changed compared to the previous quarter. The German Real Estate Finance Index (DIFI) increased slightly by 0.2 points and now ranges at minus 25.6 points. It is thus close to its historical low of minus 26.7 points from the third quarter of 2012.

Clear movements, however, can be observed when it comes to the individual real estate segments. The survey participants expect the financing conditions for office and logistics properties to improve slightly during the first half of 2013. The index’ increase of 9.5 points for logistics properties is especially strong, while the increase for office properties is rather moderate showing 2.4 points.

Although expectations for residential properties have deteriorated in the fourth quarter, this segment still received the most positive assessment. The respective balance ranges at minus 2.9 points. Furthermore, financing conditions for the retail and residential properties segments are assessed more pessimistically than in the previous quarter.

General documents

DIFI-Report - Fourth Quarter 2012 (in German)

The German Real Estate Finance Index (DIFI)

The German Real Estate Finance Index (DIFI) represents the 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 between 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 the financing conditions on the German real estate financing market. The share of those who expect unchanged financing conditions is not taken into consideration for the calculation of the balance.