Bank loans are no longer seen as the primary option to finance real estate, with the market seeing huge growth in alternative funding opportunities.
With the rise in fast-moving ventures and developments, investors are thinking outside the box for project funding. While bank lending remains at a respectable level, the traditional funding options are being usurped by alternative funding providers such as debt funding and bridging finance, especially in the past 12 months.
40 per cent of those surveyed report that alternative funding, such as debt funding, is more ‘readily available and flexible’. Despite this, in the past year property acquisition funding has been mainly influenced by banks at 63 per cent. Yet all alternative funding options still hold a strong power.
This reflects the long-term shift away from office and retail assets, with investors increasingly chasing income-generating opportunities."