Financing index slips despite positive expectations
The German Real Estate Finance Index (DIFI), published by JLL and economic research institute ZEW, fell 1.4 points to -11.1 points in the second quarter. This is due to the noticeable slowdown in the financing situation (-4.9 to -7.2 points), which could not offset the slight rise in expectations (+2.1 to 14.9 points). The clear loser in the assessment of the financing situation (-46.4 points) and expectations (-48.3 points) is the retail sector, which has been in a near-constant free fall since the end of 2016. On the other hand, logistics real estate saw a slight improvement, while office and residential uses, which in the past were more of a driving force, have dropped to slightly negative levels since the beginning of the year. Hotel real estate saw a large decline; JLL suggests that this could be due to the current shortage of business hotels in major markets. Positive signals are coming from the refinancing markets, which are rising again after declines for all indicators in 2018 and early 2019.
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