Sentiment on the German Debt Market Brightens: FAP Barometer for Commercial Real Estate Financing Crosses into Positive Range

BERLIN, April 29, 2013 /PRNewswire/ --

• With a score of +0.74 (previous quarter: -0.25), the FAP Barometer has returned to the positive range.

Sentiment on the market for commercial real estate financing has rebounded. On a scale from -15 (credit crunch) to +15 (liquid market), the FAP Barometer for Q2 2013 reads +0.74 (previous quarter: -0.25). Commented Curth-C. Flatow, founder and Managing Partner of FAP: "With a view to the buoyant sentiment, we may assume that the financing market is balanced."

All things considered, the terms of financing got clearly better ratings during the second quarter. The parameters were assessed as "progressive" by 21.6 percent of the respondents - up from 6.9 percent the previous quarter. Inversely, the share of those who considered the parameters as "restrictive" declined from 13.8 percent in Q1 2013 to now 11.8 percent. The majority (66.7 percent), however, assume that the parameters will remain stable.

The new-business volume fails to match the bright picture that the parameters of the financing market present. Here, the score has dropped for the second consecutive time, as only 43.8 percent (previous quarter: 47.1 percent) reported growth. By contrast, 14.6 percent of the financiers observed a decline in new business, whereas the score in the previous quarter had still been 13.2 percent. Stagnant new business was reported by 41.7 percent in the latest survey.

As far as real estate products go, the polled financiers identified the classic asset classes of office, residential and retail as their top three choices.

The Q2/2013 quarterly report for the FAP Barometer including press release and charts is available as download at: http://www.fap-finance.com/en/barometer.aspx  

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