A five-strong consortium of real estate firms are to collaborate with the University of Regensburg to analyse trends in the German commercial property lending markets, in the first step towards a pan-European survey akin to the UK’s De Montfort University survey.
Real Capital Analytics has assembled a group including DTZ, Jones Lang LaSalle, Savills, and independent German research and consulting company BulwienGesa, to co-sponsor an annual property lending survey, which will be carried out by the International Real Estate Business School (IREBS) at the University of Regensburg.
The initially Germany-only focused survey will finally begin to plug a much-needed information gap in Europe’s property financing markets, in an initiative first revealed by CoStar News in September.
Prof Dr. Tobias Just and Prof Dr. Steffen Sebastian will together lead the project on behalf of the University of Regensburg.
“We need a better understanding of our real estate debt markets, as debt financing can lead to severe real estate and macroeconomic cycles,” said Professor Just.
“So far, we only have very limited data on the maturity structure, the regional concentration or the asset focus of debt financing. With this survey we aim to bridge part of this data gap and enable all market participants and regulators to get a better understanding of the risks and opportunities of debt financing in Germany.”
The final report, due to be launched at Expo Real 2013, will focus on detailing the size and structure of the commercial property lending market in Germany.
Statistics on the value of outstanding loans, market composition, recent lending activity and typical loan terms will fall within the initial scope of the research.
Joseph Kelly, director of market analysis at Real Capital Analytics, said: “We are delighted these respected industry academics have gained the support of this broad sponsorship group.
“Industry driven, the research findings will provide an essential window into aggregate lending patterns in Germany.”
Bill Maxted author of the UK Commercial Property Market Lending Report, which has been produced at Leicester Business School, De Montfort University since 1999 will support the IREBS research team in a consultative capacity.
Maxted said: “I am very pleased that the research in Germany is about to commence.
“Our experience in the UK is that an in-depth study of lending by banks and other financial institutions to the commercial property investment and development industry has made a large contribution to the understanding of this nationally important and complex market.
“Germany is a very important European property market. I am sure that this new research in Germany will do the same and I wish it every success.”
In Germany, many banks operate regionally, rather than nationally, which would therefore require multiple surveys for single lending banks and insurance companies.
As a result, the scope of the initial undertaking is expected to be more modest than the De Montfort UK property lending survey, but it is a significant first step which over the coming years ahead could eventually lead to a complimentary European equivalent, filling a notable information-void in Europe’s real estate finance markets.