Slight improvement in sentiment amongst property finance companies
Slightly declining margins and higher demand for alternative credit sources
Press release dated 25 April 2016
- BF.Quartalsbarometer down slightly in 2nd quarter of 2016 to 1.04 points (previous quarter: 1.30)
- Rising liquidity costs
In the 2nd quarter of 2016, BF.Quartalsbarometer reading is slightly lower compared with previous quarter, reflecting somewhat more subdued sentiment on the real estate finance market. At 1.04 points, the value is only marginally below that of the 1st quarter (1.30 points). Accordingly, the assessment remains at a “balanced market” as the sideways movement of the barometer reading already in evidence since Q3/2015 continues. The slightly lower value is the result of declining margins and a less optimistic assessment of new business.
The margins of financers in terms of portfolio investments have declined only slightly, from 153 to 151 basis points. The margin decline is a little stronger as regards financ-ing of project developments, from 200 to 193 basis points. In response to questions concerning the development of alternative financing products, 44% of financing experts believe their growth will continue. Moreover the trend in evidence since mid-2015 of rising demand for forward deals is also continuing. Furthermore, 46% of per-sons canvassed anticipate a further increase in liquidity costs. This also reflects a continuation of a trend being observed since the 3rd quarter of 2015.
“Market participants are becoming less confident due to ongoing record numbers in the German real estate sector and the low level of interest rates,” explains Francesco Fedele, CEO of BF.direkt AG. “Liquidity costs are rising and alternative sources of credit are becoming increasingly popular. This opinion was also reflected in presentations made at our first financing congress a few days ago.”
BF.Quartalsbarometer is published by BF.direkt AG. The survey of some 130 financing experts and its evaluation are carried out by the independent analysis enterprise bulwiengesa AG. Prof. Dr Steffen Sebastian acts as scientific advisor to the project.
BF.Quartalsbarometer Q2 | 2016 is available for download here:
BF.direkt AG is one of the leading independent specialists for financing residential and commercial properties.
bulwiengesa is one of the large, independent analysis enterprises of the real-estate sector in continental Europe.
Tel: +49 711 22 55 44 136
Mail: m.koeppel @ bf-direkt.de
Tel: +49 511 47 40 23 10
Headquartered in Stuttgart - AG Stuttgart, HRB 20834; member of the Board of Directors: Francesco Fedele
Chairman of the Supervisory Board: Dr Peter Maser, attorney-at law