BERLIN, July 24, 2012 /PRNewswire/ --
- Demand for loans is growing in the real estate business, and so is new business for financiers
- Increasing relevance of alternative investment instruments in commercial real estate financing
The commercial real estate financing situation in Germany in Q3 2012 is characterised by a ready willingness to lend. On a scale from -15 (credit crunch) to +15 (liquid market), the FAP Barometer currently reads +5.8 (ready willingness to finance). The polled financiers thus noted the market's sound capital supply. Credit demand and new lending business are rated as good by financing experts. These findings represent the upshot of the first "FAP Barometer for Commercial Real Estate Financing" compiled by Flatow AdvisoryPartners (FAP) and BulwienGesa. The Barometer is based on a survey among lenders, covering new financiers (insurance companies, loan funds, superannuation schemes) who are looking for commitments on the German real estate financing market along with established players such as banks.
More than half (54.4 percent) of the poll respondents diagnosed an elevated demand for commercial real estate loans during the third quarter of 2012. While 41.3 percent said they were unaware of any change in demand, 4.4 percent of the panel participants actually identified a dip in demand. This outcome is matched by the positive picture painted by responses to the question regarding new business: 53.5 percent of the polled financiers are currently signing new business. Quarter on quarter, the figures actually show an upward trend. 32.6 percent are seeing a stable volume of new business, whereas 14.0 percent have registered a decline in the number of new business signings during Q3 2012.
Alternative financing instruments play an increasingly important role, and as many as 46.3 percent of the poll respondents have noted an increase in demand. Within the segment of alternative financing instruments, 42.1 percent of the respondents named real estate private equity as main instrument. Debt-like forms came in second, with 31.6 percent of the respondents reporting an accelerated demand. Equity-like forms were quoted by 21.1 percent.
Here you will find our full press release, graphics and survey for download:
SOURCE Flatow AdvisoryPartners (FAP)