The trend of parameters such as gearing ratio, debt maturities, and financing volumes suggest that banks do currently prefer to extend their loans than to dispose of them. At the same time, fewer banks are expanding their new business in the German market.
This is the main outcome of the “Survey on the State of Real Estate Financing and on the Distressed Real Estate Debt Situation in Germany” conducted by the research centre “Distressed Real Estate Debt” jointly operated by CORESTATE Capital AG and the Real Estate Management Institute (REMI) of the EBS Universität für Wirtschaft und Recht.
„The present opportune interest rate is certainly one reason for the low number of distressed real estate portfolios currently on the market. Banks are provided with an abundance of capital since the European Central Bank announced its bond buying program. Therefore, the pressure on banks to sell their non-performing loans has decreased“, explains Ralph Winter, founder of CORESTATE Capital AG. "Nonetheless, distressed real estate assets will continue to be put on the market and their state can only be improved by a professional approach to real estate management, allowing for a stabilisation and repositioning of such portfolios."
The research focuses on assessing the current financing sentiment in the real estate market from the banks’ perspective. This survey follows last year’s research undertaken by the CORESTATE Research Unit for Distressed Real Estate Debt. „This year's survey shows how significantly the sentiment in the market can change within one year", says Prof. Dr. Nico B. Rottke, Founder and Head of the Real Estate Management Institute of the EBS University for Economics and Law. „This underpins our plan to repeat the poll on an annual basis. This way we are able to analyse the parameters of the market for distressed real estate assets and assess the significance of non-performing loans."
Almost 60 leading personalities, such as CEOs, CFOs, and Managing Directors, from 32 commercial real estate financing institutions received the questionnaire. The total assets of the banks participating in the poll add up to approximately € 2,563 bn. representing 72% of all assets from all CRE financers based in Germany. „Our survey shows that the financing landscape is still in a structural change“, emphasises Prof. Dr. Rottke. "Banks continue to implement regulatory measures and impose higher capital requirements or scale back their activities completely."
The research centre intends to use these findings as a basis for further scientific studies. It is also planned to repeat the poll annually in order to make industry developments and trends transparent and accessible to all stakeholders.
Daniela Harnisch | idw
The RWI/ISL-Container Throughput Index started off well in 2018
22.02.2018 | RWI – Leibniz-Institut für Wirtschaftsforschung
RWI/ISL-Container Throughput Index ending 2017 on a positive note
24.01.2018 | RWI – Leibniz-Institut für Wirtschaftsforschung
Quantum computers may one day solve algorithmic problems which even the biggest supercomputers today can’t manage. But how do you test a quantum computer to...
For the first time, a team of researchers at the Max-Planck Institute (MPI) for Polymer Research in Mainz, Germany, has succeeded in making an integrated circuit (IC) from just a monolayer of a semiconducting polymer via a bottom-up, self-assembly approach.
In the self-assembly process, the semiconducting polymer arranges itself into an ordered monolayer in a transistor. The transistors are binary switches used...
Breakthrough provides a new concept of the design of molecular motors, sensors and electricity generators at nanoscale
Researchers from the Institute of Organic Chemistry and Biochemistry of the CAS (IOCB Prague), Institute of Physics of the CAS (IP CAS) and Palacký University...
For photographers and scientists, lenses are lifesavers. They reflect and refract light, making possible the imaging systems that drive discovery through the microscope and preserve history through cameras.
But today's glass-based lenses are bulky and resist miniaturization. Next-generation technologies, such as ultrathin cameras or tiny microscopes, require...
Scientists from the University of Zurich have succeeded for the first time in tracking individual stem cells and their neuronal progeny over months within the intact adult brain. This study sheds light on how new neurons are produced throughout life.
The generation of new nerve cells was once thought to taper off at the end of embryonic development. However, recent research has shown that the adult brain...
15.02.2018 | Event News
13.02.2018 | Event News
12.02.2018 | Event News
22.02.2018 | Life Sciences
22.02.2018 | Physics and Astronomy
22.02.2018 | Earth Sciences