Alternative appetite

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."

Andrew Westbrook, Real Estate and Consumer Partner, RSM

Real estate 360

For further information, please contact Howard Freedman, National Head of Real Estate and Construction.

Real estate 360 2018/2019

We interviewed over 250 industry experts from across the UK for our Real Estate 360 report. Let RSM’s 2018/2019 survey results give you a 360 degree view of the real estate market, so you too, can look forward.

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