Real estate pros foresee banks scaling back property funding
More than a third (37%) of real estate professionals believe that banks will make it harder for property developers to secure funding over the next two years. A survey from Fitzrovia Finance also found that 60% expect challenger banks and property investment platforms to step in to take market share from traditional banks, while 27% said they think it will be easier to obtain property financing from banks within the next two years.
“Property investment platforms are growing their market share of the real estate development finance market and our research suggests this could be further fuelled by traditional lenders becoming less able to lend in this sector”, said Brad Bauman, chief executive of Fitzrovia Finance. “While there are many different property investment platforms for investors to choose from, they need to ensure they are comfortable with the ones they use in terms of their experience of the real estate market, their focus on risk management and their track record for delivering competitive risk-adjusted returns”.