In Catella’s Real Estate Debt Indicator (CREDI) for the third quarter of 2013 the credit market sentiment has improved again over the previous quarter. The CREDI main index moves 4.4 points to a new all-time high of 69.3 and the positive trend is visible in both indices for current situation and expectations.
Following a summer with intense transaction activity in the Swedish real estate market, a majority of both lenders and borrowers indicates that the current financing environment has continued to improve and so has expectations for the coming quarter according to the latest CREDI survey.
“The increasing availability of loan financing has supported liquidity in the Swedish real estate transaction market. Since May we have seen a surge in transactions and it is evident that both banks and investors share a rising appetite for risk on the back of the broader economic recovery,” says Daniel Anderbring, research analyst at Catella.
In the listed property sector average loan-to-value increased 0.8 percentage points to 54.1 per cent in Q2 2013, a slight reversal of the deleveraging trend observed since 2009.
“We believe that this is indicative of a shift among the listed companies to invest in growth potential as the availability of financing improves and the general economy recovers,” says Niclas Forsman, capital markets analyst at Catella.
The sixth edition of the Catella Real Estate Debt Indicator (CREDI) is attached and can be downloaded from catellaproperty.se. The next CREDI will be published in December 2013. CREDI consists of two parts: one is a survey and the other a set of indices. Read more about the method here.
Catella’s property advisory services comprise three service areas: Sales and Acquisitions, Financing, as well as Analysis and Evaluation. The business is established in 11 European countries and has more than 200 employees.
