Using a gross income concept leads to lower levels of DTI or DSTI than using a net income concept. Another example is that valuation methodologies for RRE and CRE are not aligned, with Germany and Austria using a long-term sustainable value concept and others using true market value. Developments in valuations across countries are therefore not comparable.
The third benefit from higher-quality real estate statistics would be for policy implementation. Greater granularity in RRE data would help in calibrating macroprudential policies and tailoring them to specific segments of the borrowing population. At present, most countries rely on qualitative methods for policy calibration, as the lack of granular data on lending standards prevents them from using more sophisticated quantitative methods.