Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

Financial Experts Predict Lower Volumes of Distressed Real Estate Loans

17.10.2013
The number of non-performing real estate loans that will come to the German market in the near future are - compared to last year's survey results - expected to be substantially lower.

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
Further information:
http://www.ebs-remi.de/cc_capmarkets/

More articles from Business and Finance:

nachricht Mathematical confirmation: Rewiring financial networks reduces systemic risk
22.06.2017 | International Institute for Applied Systems Analysis (IIASA)

nachricht Frugal Innovations: when less is more
19.04.2017 | Fraunhofer-Institut für Arbeitswirtschaft und Organisation IAO

All articles from Business and Finance >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: Fizzy soda water could be key to clean manufacture of flat wonder material: Graphene

Whether you call it effervescent, fizzy, or sparkling, carbonated water is making a comeback as a beverage. Aside from quenching thirst, researchers at the University of Illinois at Urbana-Champaign have discovered a new use for these "bubbly" concoctions that will have major impact on the manufacturer of the world's thinnest, flattest, and one most useful materials -- graphene.

As graphene's popularity grows as an advanced "wonder" material, the speed and quality at which it can be manufactured will be paramount. With that in mind,...

Im Focus: Exotic quantum states made from light: Physicists create optical “wells” for a super-photon

Physicists at the University of Bonn have managed to create optical hollows and more complex patterns into which the light of a Bose-Einstein condensate flows. The creation of such highly low-loss structures for light is a prerequisite for complex light circuits, such as for quantum information processing for a new generation of computers. The researchers are now presenting their results in the journal Nature Photonics.

Light particles (photons) occur as tiny, indivisible portions. Many thousands of these light portions can be merged to form a single super-photon if they are...

Im Focus: Circular RNA linked to brain function

For the first time, scientists have shown that circular RNA is linked to brain function. When a RNA molecule called Cdr1as was deleted from the genome of mice, the animals had problems filtering out unnecessary information – like patients suffering from neuropsychiatric disorders.

While hundreds of circular RNAs (circRNAs) are abundant in mammalian brains, one big question has remained unanswered: What are they actually good for? In the...

Im Focus: RAVAN CubeSat measures Earth's outgoing energy

An experimental small satellite has successfully collected and delivered data on a key measurement for predicting changes in Earth's climate.

The Radiometer Assessment using Vertically Aligned Nanotubes (RAVAN) CubeSat was launched into low-Earth orbit on Nov. 11, 2016, in order to test new...

Im Focus: Scientists shine new light on the “other high temperature superconductor”

A study led by scientists of the Max Planck Institute for the Structure and Dynamics of Matter (MPSD) at the Center for Free-Electron Laser Science in Hamburg presents evidence of the coexistence of superconductivity and “charge-density-waves” in compounds of the poorly-studied family of bismuthates. This observation opens up new perspectives for a deeper understanding of the phenomenon of high-temperature superconductivity, a topic which is at the core of condensed matter research since more than 30 years. The paper by Nicoletti et al has been published in the PNAS.

Since the beginning of the 20th century, superconductivity had been observed in some metals at temperatures only a few degrees above the absolute zero (minus...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

Call for Papers – ICNFT 2018, 5th International Conference on New Forming Technology

16.08.2017 | Event News

Sustainability is the business model of tomorrow

04.08.2017 | Event News

Clash of Realities 2017: Registration now open. International Conference at TH Köln

26.07.2017 | Event News

 
Latest News

A Map of the Cell’s Power Station

18.08.2017 | Life Sciences

Engineering team images tiny quasicrystals as they form

18.08.2017 | Physics and Astronomy

Researchers printed graphene-like materials with inkjet

18.08.2017 | Materials Sciences

VideoLinks
B2B-VideoLinks
More VideoLinks >>>