The present and future of lending to property developers
The real estate sector is a fundamental pillar of the Spanish economy, and everything suggests that it will continue to be so in the coming years, starting in 2024. In this context, it goes without saying that entrepreneurs must have access to credit to move forward with their projects, particularly in the residential sector, developer credit. But what are the trends at this point and for the future?
On the one hand, and this is a sign of modernity, digitalisation will be increasingly present in the loan application and approval process. It will undoubtedly intensify. Systems, software and artificial intelligence itself will do their job when it comes to data collection, risk assessment and decision making by lenders.
On the other hand, financial operators will focus on and take an increasing interest in sustainable and environmentally friendly real estate projects. Lenders will more strongly consider sustainability criteria in the evaluation of loans, encouraging responsible practices.
Likewise, and as a sign of the times, there will be increased transparency in procedures, at all stages of the project: detailed reports on progress, costs and financial performance... and this, in a context in which another of the rising values will be that of flexibility.
From DEXTER's Risk Department, its Senior Analyst, Rubén Miñarro, stresses that "financial managers and intermediaries, as is our case, will tend to work even more on loans to developers with more personalised terms, more tailored to the specific needs of each entrepreneur, of each builder, and this always considering the changing conditions and parameters of the market", concludes Miñarro.
Present and future of loans to real estate developers
The real estate sector is a fundamental pillar of the Spanish economy, and everything indicates that it will continue to be so in the coming years, starting in 2024. In this context, as it cannot be otherwise, entrepreneurs must have access to credit to carry out their projects, particularly in the residential sector, credit to the developer. But what are the trends at this point and for the future?
On the one hand, and this is a sign of modernity, digitalisation will be increasingly present in the loan application and approval process. It will undoubtedly intensify. Systems, programs and artificial intelligence itself will do their job when it comes to data collection, risk assessment and decision making by lenders.
On the other hand, financial operators will focus and fix their interest on sustainable and environmentally friendly real estate projects, in escalation. Lenders will give greater consideration to sustainability criteria when evaluating loans, encouraging responsible practices.
Likewise, and as a sign of the times, transparency in procedures will increase at all stages of the project: detailed reports on progress, costs and financial performance... and this, in a context in which another of the rising values will be that of flexibility.
From DEXTER's Risk Department, its Senior Analyst, Rubén Miñarro, emphasizes that "financial managers and intermediaries, as is our case, will tend to work even more on loans to developers with more personalized terms, more tailored to the specific needs of each entrepreneur, of each builder, always considering the changing conditions and parameters of the market", concludes Miñarro.
