Banks Tighten Credit Access: Only Green-Certified Assets Will Be Financeable
In just a few years, sustainability has shifted from being a reputational aspiration to becoming a decisive criterion for accessing real estate credit in Europe. Green financing has become the new standard, with financial institutions integrating sustainability into their credit risk assessment processes, driven both by European regulation and structural changes in the market. According to the European Lender Intentions Survey 2025 published by CBRE, 71% of European lenders no longer grant loans to assets that do not meet sustainable standards, marking a historic shift compared to the previous decade.
This progress responds to a dual movement: on one hand, increasing regulatory pressure, particularly the EU Sustainable Finance Taxonomy, which obliges banks to assess the climate impact of the assets they finance. On the other hand, it has been shown that properties with low Energy Certification suffer faster depreciation, lower commercial appeal, and higher exposure to extreme weather events. In other words, financing non-sustainable assets has become an economic risk in itself.
In this context, Bruno Sauer, CEO of Green Building Council Spain (GBCe), confirms that regulatory pressure is already having visible effects on certain assets: “It affects properties that want to renovate or require additional investment, as they will have to comply with certain environmental requirements regulated by the European Finance Taxonomy, which go beyond current Spanish regulations.”
Although it does not yet directly affect the value of existing properties, Sauer points out that this will change with the incorporation of MEPS (Minimum Energy Performance Standards) and the rigorous application of the new ECO Standard: “For now, it does not affect the value of existing properties. But this may change rapidly in the coming years when MEPS are incorporated into Spanish regulations, or when the new ECO Standard starts being rigorously applied in the appraisal world. If renovated or new properties with environmental criteria increase in value, the rest lose value.”
A New Credit Paradigm: Value Lies in Sustainability
The tightening observed by CBRE reflects the incorporation of ESG performance as a risk factor comparable to leverage or cash generation. Lenders increasingly apply margin discounts for projects that demonstrate superior environmental performance, reinforcing the competitiveness of efficient assets compared to those that are not. This approach is transforming real estate investment in Spain, as developers and investors must integrate sustainability criteria from the design phase, not just as a final marketing element.
Bruno Sauer explains that the adaptation of developers and investors is not homogeneous: “We must differentiate between developers and investors. Developers seem to have been (apparently) freed from reporting their sustainable strategic changes. The Omnibus has reduced much of the ambition of the CSRD. But if developers finance themselves through banks, which must report the same green financing strategy changes (SFRD), they will pull developers into providing environmental data. Investors, subject to SFRD, must consider sustainability criteria. The most important thing is that the criteria are governed by the European Taxonomy and results are verified by an accredited third party, as it is not a voluntary certification but a European regulation to comply with.”
Sustainability, therefore, ceases to be an added value and becomes an essential requirement determining which assets are financeable and which are excluded from the traditional credit market. The result is a progressive shift of capital toward projects capable of obtaining certifications such as BREEAM, LEED, or equivalents recognized by the European Taxonomy.
The Spanish Paradox: Stricter Banks… but Greater Appetite for Financing
Although the sustainability criteria have tightened, financing for efficient housing continues to grow, driven by demand and the support of some financial institutions. In 2025, banks such as CaixaBank allocated €1.185 billion to finance homes with energy certification A or B during the first nine months of the year, formalizing 5,710 operations. This represents a 24% increase compared to the same period the previous year.
This trend is explained by several factors: healthier bank balance sheets, strong demand for new housing, and limits on land purchases, which reduce systemic risk for banks. In addition, Spain currently builds around 100,000 homes per year, a level that allows banks to comfortably manage the capital consumption required by the Housing and Land Observatory (OVS) of the Ministry of Housing and Urban Agenda.
Bruno Sauer offers a medium- and long-term view on the evolution of real estate financing: “Perhaps in 10-15 years, most real estate loans will align with the European Taxonomy as a framework for sustainable criteria. But there will always be exceptions. In addition, the Taxonomy is a regulation that will be updated every 3-4 years so that projects aligned now may no longer be in 15 years. The effects of climate change and biodiversity loss, which both directly affect human health and societal prosperity, are just beginning. We will move toward a harsher reality and will have to continuously adapt in the coming decades.”
The Role of Urbanitae and Alternative Financing
In this new, more demanding regulatory environment, with stricter risk criteria, alternative financing has gained prominence as a complement and, in some cases, a substitute for traditional bank credit. Urbanitae has established itself as the leading real estate crowdfunding platform in Spain, regulated by the CNMV, offering equity and crowdlending solutions for new construction and renovation projects. Since its founding, it has financed dozens of projects with amounts typically ranging between €1 million and €5 million per operation.
According to the I Observatory of Sector Promoter Financing, prepared by Urbanitae and KPMG, alternative financing could increase its market share to between 37% and 40% of total real estate promotion investment by 2030. This growth points to a structural change: lower dependence on bank credit and a greater presence of diversified capital from crowdfunding, investment funds, or private equity. It is a model that strengthens the sector’s resilience against economic cycles, regulatory changes, or credit restrictions.
This scenario suggests that developers, investors, and alternative financing platforms like Urbanitae will need to constantly adapt to increasingly stringent and evolving sustainability criteria. Sustainability will stop being a differentiating factor and become a cross-cutting requirement, affecting project conception, financial strategy, and commercial planning. The Spanish real estate sector is thus facing a structural change in which the ability to anticipate new regulations and energy efficiency standards will be key to ensuring project viability and resilience against future climatic and regulatory challenges.
