German commercial property financing sentiment plunges, survey shows
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Vehicles move along during the early morning rush hour as sunrise haze illuminates the skyline in Berlin, Germany, June 24, 2026. REUTERS/Fabrizio Bensch
FRANKFURT, July 6 (Reuters) - The mood among those financing commercial real estate in Germany plunged in the second quarter, a survey showed on Monday, after the war in Iran prompted a rise in inflation and higher interest rates.
• The survey by BF.direkt showed its barometer sinking to -25.97 from -9.74 in the first quarter, a value that shows a very limited readiness to provide financing, BF.direkt said
• "These results can be explained primarily by the war in Iran and its consequences. The energy price shock is driving up inflation, which in turn is fuelling fears of rising interest rates," said Steffen Sebastian, an academic and advisor for the survey
• "This is hitting an industry that has already been in a fragile situation since the sharp rise in interest rates in 2022," he added
• Commercial real estate prices dropped in the wake of the Ukraine war in 2022 but have since begun to rise, though only haltingly
• More than 46% of those surveyed said that financing conditions had worsened
• The survey took place between June 8-16
(Reporting by Tom Sims, Editing by Miranda Murray)
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