Germany: Property Lenders Maintain Their Good Cheer
BERLIN, November 3, 2014 /PRNewswire/ --
For the fourth quarter of 2014, the FAP Barometer returned a stable positive score of +2.33 index points (previous quarter: +2.48 points). Sentiment among lenders on the German commercial real estate financing market is very upbeat. At the moment, nearly 70 percent believe that the parameters for commercial real estate financing are more progressive than they were the previous quarter. The financing market has thus been rated as steadily more progressive by the interviewed experts since 2012, the year the FAP Barometer was launched.
For 49 percent of the lenders, new lendings have gathered momentum, which represents a virtually unchanged score. Loans of 50 million euros or less continue to account for the largest share of the lending volume (85 percent). The volume for loans between 50 and 100 million euros declined to 9 percent (down from 20 percent in Q3).
As far as the financed property types are concerned, the quarter continues the trend set by Q3: Niche segments like wellness and entertainment properties or underground car parks have become easier to finance. The share of classic asset types like residential and office properties or shopping centres declined slightly.
The LTV spread in inventory financing ranges from 50 to 100 percent in Q4 2014, while the benchmark ratio across financing types and property types is 72 percent. The spreads extend from 65 to 600 basis points. The median equals 176 bp, a modest gain quarter on quarter (Q3: 167 bp). In project development financing, the LTC bandwidth extends from 50 to 90 percent, with the benchmark now at 76 percent after a modest quarter-on-quarter gain (Q3: 73 percent).
Download FAP Barometer Q4/2014 quarterly report:http://www.fap-finance.com/en/barometer.aspx
Press contact
Tobias Frank
Tel.: +49-30-46006-142
E-mail: pr@fap-finance.com
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