Sentiment among German commercial real estate financiers deteriorated sharply in the second quarter, with a survey barometer dropping to -25.97 from -9.74, indicating a very limited readiness to provide financing. The war in Iran and its inflationary consequences are cited as primary drivers.
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German commercial property financing sentiment plunges, survey shows
IN SHORT
Sentiment among German commercial real estate financiers deteriorated sharply in the second quarter, with a survey barometer dropping to -25.97 from -9.74, indicating a very limited readiness to provide financing. The war in Iran and its inflationary consequences are cited as primary drivers.
Frequently asked questions
The BF.direkt barometer is a survey that measures the sentiment among commercial real estate financiers in Germany, indicating their readiness to provide financing.
The war in Iran and its consequences, including rising inflation and fears of higher interest rates, are cited as the primary reasons for the decline in sentiment.
Commercial real estate prices dropped in 2022 but have since begun a halting rise. Commerzbank expects a moderate recovery.
What Happens Next
01ECB interest rate cuts are expected between mid-2024 and mid-2025.
02Commerzbank expects moderate price increases in the German commercial real estate market to continue.
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German commercial property financing sentiment plunges, survey shows