Majorca Property News

Real Estate credit markets recover until 2011

The financial situation of real estate companies and property developers remain in the next two years of tense. This is from a recent survey of 52 European Immobilienfinanzierern by the consultancy firm DTZ shows. The majority (around 59 percent) of companies surveyed expect financial institutions until the year 2011 with a "sustained recovery" in the European commercial credit markets.

"This year, the majority of banks in Europe, the credit volume in its key markets to keep the current level," says Timo Tschammler, managing director of DTZ Germany. But also want 47 percent of surveyed institutions this year, fewer new loans awarded as the 2008th Only for 2010 expect the financial institutions with rising loan volumes. DTZ surveyed European commercial and investment banks, mortgage providers and other investors with a total loan of 193 billion euros. Of these, 80 percent of loans to private real estate companies and a further 13 percent in publicly traded real estate AGs awarded. Approximately 45 percent of the surveyed institutions are located in Britain and another 22 percent come from Germany.
Credit conditions should be tightened
High loan defaults and arrears in the years to make the banks also contribute to a more restrictive policy on the credit terms: 90 percent of respondents indicate the criteria 2009 to try to tighten up and 41 percent of the institutions surveyed Loan in real estate loans compared to 2008 collapse.
Paradox, but true: The credit margins to be in the next few years rise again. Around three-quarters of the surveyed institutions want this year to raise the profit margin, almost 40 percent are planning for 2010 a further increase in the margins.
Developers are already affected
Among the tougher lending and a collapsing demand from the financial crisis currently suffer especially the property developers. Following an investigation of the Analytical Institute BulwienGesa in the A-seven German cities (Hamburg, Frankfurt, Berlin, Dusseldorf, etc.), the planned implementation of projects with a horizon to 2013 have declined by nine percent. Taking into account the already completed and under construction properties is loud BulwienGesa project a decline in the volume of 4.4 billion euros (down 6.5 percent from the previous year).
BFW warns credit terminal
Association hails side of it so heavily criticized: "The key lies with the current one percent to a record low and therefore the banks granted the ability to forgive loans cheap. The banks deny the economy, but current credit conditions too good, "criticizes Walter Rasch, president of the BFW Bundesverband Freier Immobilien-estate companies.
"For about 35 percent of our companies have the interest rates noticeably deteriorated. 30 percent reported even by massive problems, even to obtain project financing, "says Rausch continues. Investment in housing would be significantly more difficult and the low building to continue, so rush.