The mood on the German real estate financing market is brightening - despite geopolitical uncertainties and economic policy tensions in international trade.
The current German real estate financing index (Difi) Shows in the second quarter 2025 A noticeable recovery of the financing situation. Particularly noteworthy: Despite global risks, For example through protectionist US customs measures, the direct influence on lending remains low. The financing of commercial properties in Germany proves to be robust - good news for project developers, Existing holder and institutional investors.
Current situation improved, Expectations remain behavior
With an increase around 5,4 Points on now 10,5 The DIFI signals points a positive market reaction - driven primarily by a significantly better assessment of the current financing conditions. The situation indicator changes 10,2 Points too, During the expectation value with only +0,5 Points almost stagnated. That indicates this, that market participants perceive stabilization, However, no noticeable improvement can be expected in the medium term.
Residential property continues to dominate the financing landscape
Under the investigated asset classes, residential properties are best cut off again. With a combined location- and expectation value of 41,7 The segment remains the most stable pillar for many financiers - not least because of solid demand and relatively low structural risks.
Hotels and logistics properties follow with a clear distance. Office properties can improve in the expectation, However, remain in the negative area in the situation assessment. Despite slight recovery, retail properties continue to form the bottom - the structural challenges in this segment are known and remain formative.
Credit margins fall - competition among financiers increases
In almost all asset classes, experts observe a decline in margins-particularly pronounced in the Value Add segment. Core products are more stable, But margin declines can also be felt here. The reason: After a phase of cautious new business activity, banks and institutional lenders are increasingly returning to the market and competing for volume -strong mandates.
This not only leads to more attractive financing conditions, but also for more flexibility in loan-to-value ratios. While the average LTVs for core products are between 60 % (Hotel) and 68 % (Reside) lay, Higher odds are also being accepted again in the value-add area – a trend, which could continue in the coming months.
Due diligence remains the key – provenance testing in focus
Despite the overall stable development, financiers are risk-aware. According to the DIFI survey, around two thirds pay more attention to the origins of tenants, Users and investors – an effect, which is understandable in the context of geopolitical uncertainties such as US customs policy or international sources of conflict.
Even if the concrete impact of foreign policy measures on financing parameters remains small so far, Credit processes are slowing down in many places - not due to a lack of liquidity, but because of intensified risk analyzes and expanded testing standards.
Our conclusion: Selective growth requires a strategic approach
For financing from 3 m. EUR means that: Projects with a clear user structure, With a sustainable usage concept and a convincing risk profile, we continue to receive good conditions - even with LTVs beyond the 60 percent mark. At the same time, growing competition among lenders requires strategic debt advisory, which, in addition to structuring and process management, also offers access to a diversified circle of institutional financing partners.
In an environment, that stabilizes, but not euphoric, gilt: Anyone who positions their financing wisely and manages processes professionally, benefits from favorable conditions - even without taking Washington's customs policy into account.