Press release: IREBS German Debt Project 2017
Increased equity at rising prices leads to a drop in borrowed capital quotas: The growth in new business in commercial real estate finance in 2016 was half as high as it had been in the previous year, albeit at 10%, and looks set to be halved to 5% in 2017. There is ever greater variety in the mix of property types; for the first time in our survey, the proportion of other types was higher than the finance for retail real estate. Net margins have remained under pressure and could fall below 100 base points in 2017. LTVs are in decline due to the high availability of equity and sharp rises in prices, on average at least.