{"id":74237,"date":"2025-11-13T17:37:07","date_gmt":"2025-11-13T16:37:07","guid":{"rendered":"https:\/\/blog.urbanitae.com\/?p=74237"},"modified":"2025-11-13T18:14:34","modified_gmt":"2025-11-13T17:14:34","slug":"alternative-financing-gains-ground-in-real-estate-development-in-2025","status":"publish","type":"post","link":"https:\/\/blog.urbanitae.com\/en\/2025\/11\/13\/alternative-financing-gains-ground-in-real-estate-development-in-2025\/","title":{"rendered":"Alternative Financing Gains Ground in Real Estate Development in 2025"},"content":{"rendered":"\n

The Spanish real estate development market is entering a new cycle of growth and transformation. This is reflected in the First Observatory on Financing in the Real Estate Development Sector<\/strong>, prepared by Urbanitae<\/strong> and KPMG Spain<\/strong>, which for the first time offers a complete snapshot of the financial ecosystem supporting real estate development in the country<\/strong>.<\/p>\n\n\n\n

The report, presented on November 12 at the Torre de Cristal in Madrid, points to a horizon of over \u20ac50 billion in real estate development investment by 2030<\/strong>, compared to the estimated \u20ac35 billion in 2024. Within that figure, alternative financing<\/a><\/strong>\u2014currently representing 25\u201327% of the total<\/strong>\u2014could reach up to 37% by 2030, or over \u20ac19 billion<\/strong>.<\/p>\n\n\n\n

A More Balanced Financial Model<\/h2>\n\n\n\n

The Observatory, developed through surveys of developers, financial institutions, investment funds, and alternative financing platforms, as well as in-depth interviews with representatives from Banco Santander, Arcano, FS Capital, Onate, RTV Grupo Inmobiliario, and Urbanitae, highlights a significant evolution in the sources of capital driving projects.<\/p>\n\n\n\n

Although banks remain the main source of financing<\/strong>, their share is moderating in favor of new alternative players, including debt funds, bridge loans, and real estate crowdfunding platforms.<\/p>\n\n\n\n

\u201cIn some years, crowdfunding financing has seen annual growth exceeding 100%<\/strong>, demonstrating its ability to attract capital and establish itself as a complementary source,\u201d emphasizes Diego Bestard<\/strong>, CEO and founder of Urbanitae. According to the study, this type of financing could exceed \u20ac1 billion annually in real estate development<\/strong> before the end of the decade.<\/p>\n\n\n\n

Meanwhile, Carlos Cuatrecasas<\/strong>, partner at FS Consulting Strategy at KPMG, notes that \u201calternative financing has grown significantly and will continue to do so. Its role is especially relevant in segments where banks are less active<\/strong>, such as land acquisition, early-stage projects, or higher-risk developments.\u201d<\/p>\n\n\n\n

Alternative Financing: Flexibility and Professionalization<\/h2>\n\n\n\n

The report confirms that alternative financing does not compete with banking, but complements it<\/strong>, acting as a bridge between the developer\u2019s own equity and traditional credit.<\/p>\n\n\n\n

This model offers greater flexibility<\/strong>, allows financing to be adapted to the needs of each project phase<\/strong>, and reduces the initial financial burden for developers. In return, investors take on higher risk and therefore demand higher returns<\/strong>, typically between 12% and 15%<\/strong>, according to the Observatory.<\/p>\n\n\n\n

The trend observed is clear: a more diversified, professional, and efficient ecosystem<\/strong>, where banks, funds, and alternative financiers coexist and add value at different stages of the development cycle<\/strong>.<\/p>\n\n\n\n

Structural Challenges: Land, Costs, and Affordable Housing<\/h2>\n\n\n\n

Beyond the evolution of capital sources, the Observatory<\/a> identifies three major challenges<\/strong> for Spanish real estate development:<\/p>\n\n\n\n