Real Estate Professionals Have Positive Outlook on The Secured Property Debt Market
Some 63% of real estate professionals believe the secured property debt market is currently attractive for investors.*
Research that we recently commissioned reveals that nearly half (48%) say this is due to opportunities arising from the impact on increased regulation on mainstream lenders and the growing capital requirements placed on them when providing short-term and development property finance. Furthermore, 41% said the market is attractive because of a supply shortage in the UK housing sector and 26% stated it’s due to a good history of value creation in this sector.
When asked specifically about the residential property development loans market, 37% said it is attractive for investors, whilst only 11% did not consider it attractive at this time.
Many professional real estate investors believe there are attractive opportunities in the property debt sector
However, the professional real estate investors interviewed believe the overall residential property lending market will remain static this year, 30% expecting it to grow and the same percentage anticipating it will shrink.
Our CEO Brad Bauman said: “Our research shows many professional real estate investors believe there are attractive opportunities in the property debt sector for individual investors. However, with so many property funds and investment platforms to choose from, it is important that investors understand the processes each has in place for managing risk, their experience and track record.
“Our research found that the most important feature for real estate professionals considering using a property debt investment platform is the expertise and track record of its management team. Our specialist team at the heart of Fitzrovia Finance have an established track record of over £100m in secured property lending. With 100 years of combined expert management experience.”
Fitzrovia Finance launched to institutional investors in Sep 2017, and in May this year we opened our doors to private investors, who from an investment of £1,000, can benefit from attractive risk-adjusted returns of up to 5.5% p.a.**
*The research company PollRight interviewed 32 real estate professionals during June and July 2019.
** The indicated return is an estimate that investors can earn, after fees but before bad debt and tax. View our platform statistics for more detail.