Swedes grow pessimistic about property financing: Catella

Sentiment among participants in the Swedish property loan market has weakened despite improvements among the banks' own finances. This is revealed by Catella’s CREDI (Catella Real Estate Debt Indicator) indicator, which regularly measures the temperature in the Swedish property loan market.

'CREDI demonstrates that sentiment among parties on the market is characterised by continued pessimism, both as regards the trend on the property loan market during the period May to August, and also for the coming quarter,' said Daniel Anderbring, research analyst at Catella.

'The positive trend we have seen as regards the banks' own financing situation has yet to have a tangible impact on the aggregate market sentiment to date, although the real estate companies surveyed are cautiously optimistic about the upcoming quarter. In addition, we believe that we have experienced a nuanced improvement in the dialogue with parties on the market during August.'

Catella held its annual real estate seminar in August. Some 100 managing directors and senior executives from the Swedish real estate industry took part. Participants were asked to respond to 12 questions concerning real estate financing.

'In the answers to the questions at the real estate seminar we see, for example, that a majority of the participants believe in an unchanged transaction volume for 2012. At the same time, no less than 64% answered that access to real estate financing is the most decisive factor for the development on the market. Increased access to real estate financing is a key factor for creating increased optimism on the market,' said Anders Palmgren, head of Catella’s European Corporate Finance operations.