{"id":4745,"date":"2026-10-23T00:55:25","date_gmt":"2026-10-22T23:55:25","guid":{"rendered":"https:\/\/www.ondara.group\/alternative-finance-residential-development-spain\/"},"modified":"2026-10-23T00:55:25","modified_gmt":"2026-10-22T23:55:25","slug":"alternative-finance-residential-development-spain","status":"publish","type":"post","link":"https:\/\/www.ondara.group\/en\/alternative-finance-residential-development-spain\/","title":{"rendered":"Alternative finance in residential development, Spain"},"content":{"rendered":"<p><strong>Alternative finance supplies between 30% and 32% of residential development funding in Spain, according to KPMG&#8217;s first Observatory on developer financing (November 2025), and could rise to 37%-40% by 2030.<\/strong> Banks remain the main source but are losing ground. Here is what the data says, why it is happening and what it means for a private investor.<\/p>\n<p>This text is educational. It is not investment advice.<\/p>\n<h2>How much alternative finance weighs in residential development<\/h2>\n<p>The Observatory estimates that around EUR 35,000 million was invested in residential development in Spain in 2024. Banks funded 56% to 58%. Alternative finance supplied 30% to 32%: 18%-20% as debt and 11%-13% as equity. Crowdfunding platforms contributed 1% to 3%, and developers&#8217; own funds 9% to 11%, according to <a href=\"https:\/\/www.alimarket.es\/construccion\/noticia\/416791\/la-inversion-en-promocion-inmobiliaria-en-espana-superara-los-50-000-m--en-2030--segun-urbanitae-y-kpmg\" target=\"_blank\" rel=\"noopener\">Alimarket, which reported the study on 12 November 2025<\/a>.<\/p>\n<div class=\"tabla-seo\">\n<table>\n<caption>Source: First Observatory on developer financing (KPMG), published November 2025<\/caption>\n<thead>\n<tr>\n<th>Source of funding<\/th>\n<th>2024<\/th>\n<th>2030 forecast<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Banks<\/td>\n<td>56%-58%<\/td>\n<td>51%-53%<\/td>\n<\/tr>\n<tr>\n<td>Alternative finance<\/td>\n<td>30%-32%<\/td>\n<td>37%-40%<\/td>\n<\/tr>\n<tr>\n<td>Total development investment<\/td>\n<td>EUR 35,000m<\/td>\n<td>over EUR 50,000m<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>Be careful when comparing figures. This scope covers debt and equity across all residential development. Other studies measure only mortgage-backed debt and give lower numbers, such as the 20% in the <a href=\"https:\/\/www.pwc.es\/es\/real-estate\/observatorio-financiacion-alternativa-colateral-hipotecario-espana.html\" target=\"_blank\" rel=\"noopener\">Observatory of Alternative Financing with Mortgage Collateral in Spain, with market analysis by PwC and legal framework by Cuatrecasas<\/a>, presented in October 2026. The figures differ because what is measured differs, and there is no single official statistic.<\/p>\n<h2>Trends: what is happening worldwide and in Spain<\/h2>\n<ul>\n<li><strong>Spain, October 2026:<\/strong> the Observatory with PwC analysis puts alternative lending with mortgage collateral at EUR 2,583 million in 2025 and forecasts EUR 3,891 million in 2026. We cover it in <a href=\"https:\/\/www.ondara.group\/en\/alternative-mortgage-lending-spain-2026\/\">alternative mortgage lending in Spain: 2026 figures<\/a>.<\/li>\n<li><strong>Europe, 16 July 2026:<\/strong> Octus counted 494 direct lending deals in Europe in the first half, 4% more than a year earlier, in its <a href=\"https:\/\/octus.com\/resources\/blog\/data-drop-european-private-credit-defies-headlines-with-renewed-lbo-momentum\/\" target=\"_blank\" rel=\"noopener\">data report<\/a>. European private credit remains active despite volatility.<\/li>\n<li><strong>Interest rates, 16 September 2026:<\/strong> the ECB raised its deposit facility rate to 2.50% from 2.25%, according to its <a href=\"https:\/\/www.ecb.europa.eu\/stats\/policy_and_exchange_rates\/key_ecb_interest_rates\/html\/index.en.html\" target=\"_blank\" rel=\"noopener\">official rates table<\/a>. Higher rates make project funding more expensive and squeeze margins. The next ECB meeting is scheduled for 29 October.<\/li>\n<\/ul>\n<p><strong>What it means for an investor in Spain:<\/strong> if the alternative share grows, there will be more deals to assess. But more supply does not mean less risk. Each deal depends on its developer, its construction plan and its collateral.<\/p>\n<p><img data-dominant-color=\"326585\" data-has-transparency=\"false\" style=\"--dominant-color: #326585;\" decoding=\"async\" src=\"https:\/\/www.ondara.group\/wp-content\/uploads\/2026\/10\/grua-obra-promocion-residencial-financiacion-alternativa.webp\" alt=\"Cranes above a residential building under construction: alternative finance in residential development\" width=\"1680\" height=\"1120\" class=\"aligncenter size-full wp-image-4740 not-transparent\" loading=\"lazy\" srcset=\"https:\/\/www.ondara.group\/wp-content\/uploads\/2026\/10\/grua-obra-promocion-residencial-financiacion-alternativa-200x133.webp 200w, https:\/\/www.ondara.group\/wp-content\/uploads\/2026\/10\/grua-obra-promocion-residencial-financiacion-alternativa-300x200.webp 300w, https:\/\/www.ondara.group\/wp-content\/uploads\/2026\/10\/grua-obra-promocion-residencial-financiacion-alternativa-400x267.webp 400w, https:\/\/www.ondara.group\/wp-content\/uploads\/2026\/10\/grua-obra-promocion-residencial-financiacion-alternativa-600x400.webp 600w, https:\/\/www.ondara.group\/wp-content\/uploads\/2026\/10\/grua-obra-promocion-residencial-financiacion-alternativa-768x512.webp 768w, https:\/\/www.ondara.group\/wp-content\/uploads\/2026\/10\/grua-obra-promocion-residencial-financiacion-alternativa-800x533.webp 800w, https:\/\/www.ondara.group\/wp-content\/uploads\/2026\/10\/grua-obra-promocion-residencial-financiacion-alternativa-1024x683.webp 1024w, https:\/\/www.ondara.group\/wp-content\/uploads\/2026\/10\/grua-obra-promocion-residencial-financiacion-alternativa-1200x800.webp 1200w, https:\/\/www.ondara.group\/wp-content\/uploads\/2026\/10\/grua-obra-promocion-residencial-financiacion-alternativa-1536x1024.webp 1536w, https:\/\/www.ondara.group\/wp-content\/uploads\/2026\/10\/grua-obra-promocion-residencial-financiacion-alternativa.webp 1680w\" sizes=\"auto, (max-width: 1680px) 100vw, 1680px\" \/><\/p>\n<h2>Why banks are ceding share and alternative lenders are gaining ground<\/h2>\n<p>The sources cite several reasons that reinforce each other:<\/p>\n<ul>\n<li><strong>Bank prudence:<\/strong> banks require pre-sales, equity and a building licence before lending. The early stages fall outside their scope.<\/li>\n<li><strong>Costs and timing:<\/strong> higher construction costs and planning delays lengthen projects and call for more capital.<\/li>\n<li><strong>Volume needed:<\/strong> the Observatory expects annual investment to exceed EUR 50,000 million by 2030. Covering that jump with banks alone is hard.<\/li>\n<li><strong>Tranche structures:<\/strong> alternative debt and equity cover specific tranches rather than simply replacing the bank. See also our piece on <a href=\"https:\/\/www.ondara.group\/en\/bridge-to-term-real-estate-legal-keys\/\">bridge-to-term real estate financing<\/a>.<\/li>\n<\/ul>\n<h2>What the forecasts imply: an illustrative example<\/h2>\n<p>A simple calculation helps size the forecast. We apply the Observatory&#8217;s percentages to the 2024 and 2030 totals. This is an illustrative and hypothetical example, not an Ondara forecast.<\/p>\n<div class=\"tabla-seo\">\n<table>\n<caption>Illustrative example prepared by Ondara Group, October 2026, based on the Observatory&#8217;s ranges (KPMG)<\/caption>\n<thead>\n<tr>\n<th>Item<\/th>\n<th>2024<\/th>\n<th>2030 (forecast)<\/th>\n<th>Implied annual growth<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Alternative finance<\/td>\n<td>EUR 10,500-11,200m<\/td>\n<td>EUR 18,500-20,000m<\/td>\n<td>\u2248 10%<\/td>\n<\/tr>\n<tr>\n<td>Banks<\/td>\n<td>EUR 19,600-20,300m<\/td>\n<td>EUR 25,500-26,500m<\/td>\n<td>\u2248 4.5%<\/td>\n<\/tr>\n<tr>\n<td>Total<\/td>\n<td>EUR 35,000m<\/td>\n<td>EUR 50,000m<\/td>\n<td>\u2248 6.1%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>Banks also grow in euro terms. What changes is the split. And it is a forecast: it depends on interest rates, costs, housing demand and lenders&#8217; appetite.<\/p>\n<h2>How Ondara works in this context<\/h2>\n<p>Ondara Group is an alternative investment manager based in Barcelona, active since 2018. We structure private debt transactions secured on real estate, assess each one individually and work with real assets as collateral. Investors deal directly with the management team, with a minimum investment of EUR 25,000. You can meet the team at <a href=\"https:\/\/www.ondara.group\/en\/who-we-are\/\">who we are<\/a> and see the group&#8217;s businesses at <a href=\"https:\/\/www.ondara.group\/en\/brands\/\">brands<\/a>.<\/p>\n<h2>Risks to consider<\/h2>\n<p>All investment carries risk, including partial or total loss of capital. In residential development, also consider:<\/p>\n<ul>\n<li><strong>Default risk:<\/strong> the developer may not repay the loan. Real estate collateral mitigates the risk but does not remove it.<\/li>\n<li><strong>Construction and timing risk:<\/strong> delays or cost overruns can extend the transaction.<\/li>\n<li><strong>Market risk:<\/strong> if prices or sales cool, collateral value and repayment capacity fall.<\/li>\n<li><strong>Illiquidity:<\/strong> capital is tied up until maturity and an early exit may not be possible.<\/li>\n<li><strong>Interest rate risk:<\/strong> higher rates make project funding more expensive.<\/li>\n<li><strong>Data risk:<\/strong> market figures come from studies with different scopes, and some are forecasts.<\/li>\n<\/ul>\n<h2>Frequently asked questions<\/h2>\n<h3>What share of residential development do banks fund in Spain?<\/h3>\n<p>Between 56% and 58% in 2024, according to KPMG&#8217;s Observatory. It is forecast to fall to 51%-53% by 2030.<\/p>\n<h3>What is alternative finance in property development?<\/h3>\n<p>It is the debt and equity provided by non-bank lenders, such as debt managers, family offices or platforms, to cover tranches that banks do not fund.<\/p>\n<h3>Why do figures differ between studies?<\/h3>\n<p>Because each study measures a different scope: debt only or debt and equity, mortgage-backed only or all development. There is no single official statistic.<\/p>\n<h3>Can a private individual invest in this market?<\/h3>\n<p>Yes, through crowdfunding platforms or vehicles run by managers such as Ondara, with a minimum investment of EUR 25,000. It carries risk of capital loss and illiquidity.<\/p>\n<h3>Do higher interest rates affect these deals?<\/h3>\n<p>Yes. They raise project costs and can pressure repayment. They also raise the return required from any alternative.<\/p>\n<h2>In summary<\/h2>\n<ul>\n<li>Alternative finance covers 30%-32% of residential development and could reach 37%-40% by 2030, according to KPMG.<\/li>\n<li>Banks still lead with 56%-58%, though they are losing share.<\/li>\n<li>Figures vary with each study&#8217;s scope: compare them carefully.<\/li>\n<li>Higher rates and construction costs strain projects.<\/li>\n<li>All investment carries risk, including loss of capital and illiquidity.<\/li>\n<\/ul>\n<p>If you would like to know how we invest, <strong><a href=\"https:\/\/www.ondara.group\/en\/investors\/\">register as an investor<\/a><\/strong> and we will explain how it works. The minimum investment is EUR 25,000.<\/p>\n<p><em>This article is for information purposes only and does not constitute an investment recommendation or financial advice. All investments carry risks, including the possible loss of the capital invested, and past or target returns do not guarantee future returns. Analyse each opportunity with a professional before investing.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Alternative finance funds 30-32% of residential development in Spain and could reach 37-40% by 2030. Data, trends and risks for the private investor to know.<\/p>\n","protected":false},"author":1,"featured_media":4179,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20,24],"tags":[],"class_list":["post-4745","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-inversiones-alterativas","category-real-estate"],"_links":{"self":[{"href":"https:\/\/www.ondara.group\/en\/wp-json\/wp\/v2\/posts\/4745","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ondara.group\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ondara.group\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ondara.group\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ondara.group\/en\/wp-json\/wp\/v2\/comments?post=4745"}],"version-history":[{"count":0,"href":"https:\/\/www.ondara.group\/en\/wp-json\/wp\/v2\/posts\/4745\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.ondara.group\/en\/wp-json\/wp\/v2\/media\/4179"}],"wp:attachment":[{"href":"https:\/\/www.ondara.group\/en\/wp-json\/wp\/v2\/media?parent=4745"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ondara.group\/en\/wp-json\/wp\/v2\/categories?post=4745"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ondara.group\/en\/wp-json\/wp\/v2\/tags?post=4745"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}