Leverage in Real Estate Investment: What It Is, When It Makes Sense and What Risks You Take On

Leverage can improve returns on equity, but it also amplifies mistakes, costs, liquidity shortages and adverse scenarios.

Leverage can improve returns on equity, but it also amplifies mistakes, costs, liquidity shortages and adverse scenarios.

Ronda Nord finances an ongoing residential development in Sant Feliu de Guíxols, with 28 homes, valid permits, construction 25% complete and a first-ranking mortgage.

Paseo de los Olivos finances the conversion of three commercial units into 66 storage units and two apartments in Madrid and Móstoles, alongside Grupanxon, a recurring Urbanitae sponsor.

Balcón del Sur closes within the expected timeframe following the granting of the licence and the securing of bank financing, with full repayment of capital and interest.

The world now has 2,583 buildings over 200 metres tall, but the new cycle of high-rise construction requires greater discipline, economic viability and urban purpose.

Allonbay Aura was exited with a 61% gross return and a 21.5% IRR, far above the initial scenario, thanks to stronger sales, cost control and tax efficiency.

A tax refund can be used to build an emergency fund, repay debt or start investing, provided it fits your liquidity needs, time horizon and goals.

Madrid, Marbella and the Balearic Islands account for a large share of prime demand in Spain, while high-net-worth buyers prioritise quality, service, efficiency and value preservation.

Torrinha Gardens II finances the second tranche of a development comprising 27 tourist apartments and a retail unit in Porto, with construction underway, permits granted and repayment expected through bank financing.

Lavapiés 50 offers the opportunity to invest in an almost fully renovated building in central Madrid, featuring 19 apartments, a retail unit, the Reside Plan and a preferred return for Urbanitae investors.