JLL/ZEW financing barometer takes dip in Q3

One of the barometers we keep an eye on at REFIRE is the quarterly Deutsche Immobilienfinanzierungsindex, or Difi for short, a quarterly reading of survey participants' assessment of the current situation and expectations for the German real estate financing market.

It is produced and managed by property adviser JLL and the Zentrum für Europäische Wirtschaftsforschung (ZEW), the Centre for European Economic Research, and is calculated on the basis of an average of the results for th ofice, rtail, logistics and fresidential real estate sectors.

Its latest reading, for Q3, shows a big fall in confidence over the previous quarter, with the Index falling 6.2 points to 23.5 points and its lowest level since end-2012. The results can be interpreted as saying that respondents see the current climate as still good, but expect prospects to disimprove over the next six months. This sentiment applies to all market segments except for logistics.

Markus Kreuter, head of financing at JLL, believes the under-represented logistis sector is now coming back into lenders' favour. "Because of the competitive pressure on lending in the office, retail and residential financing sectors, the logistics sector is now offering better prospects for lenders", he says.