In recent months, a new Dutch community of intermediaries, 'The Day of the Intermediary', conducted research into the trends and developments in the real estate market and the field of intermediaries. The organization, an initiative of LVDH Finance, asked over 500 intermediaries about their forecasts. Below are the main findings.
Non-bank versus bank financing
According to respondents, real estate developers can still turn to banks for a loan or mortgage for financing real estate projects in 60% of cases. It is expected that this percentage will decrease in the coming years. No less than 81% believe that the share of non-bank financing versus bank financing will increase.
The reason for this is the expectation that banks, due to increased legislation and regulation, compliance, and a lack of flexibility, will not become more accessible in providing capital, or that accessibility may even decrease (70%).
While bank financing is still the most commonly used form of financing, bridge financing through alternative parties is in second place. It is expected that the use of this form of real estate financing will further increase in the coming years. Reasons for this include the lower threshold compared to banks and the flexibility and speed offered by parties. Resources such as crowdfunding, personal networks, or personal capital are still used very little to date.
A growing need for intermediaries
The growing number of alternative financing options in the real estate market goes hand in hand with an increasing importance of the role of intermediaries who are active in mediating between real estate developers and investors.
An increase in the number of products, the diversity of the offering, and changed regulations in the real estate market make the market and the financial landscape more complex. The intermediary will weigh more heavily due to their independent character and knowledge of the various options. This is underscored by 85% of respondents.
Conditions for a healthy real estate market
Access to financing ranks number one according to respondents when it comes to creating a healthy real estate market. Additionally, the importance of easier processes to obtain the necessary permits from the municipality and a decrease in interest rates for financing is emphasized. Access to alternative financing is not seen as a risk with an increase in the number of providers, nor are the high costs for materials and contractors.
However, it is important that alongside the offering of alternative financing forms in short-term financing, long-term financing will also be added to the offering. Over 92% of respondents see a strong need in the market for financing of five years or more.
About 'The Day of the Intermediary'
'The Day of the Intermediary' is a national community of intermediaries active in real estate with the aim of promoting knowledge sharing and connection in the field. The community was established in 2024 by a specialist in financing for the purchase, realization, and optimization of real estate, LVDH Finance.
On June 27, the first edition of the annual recurring event will be organized in the form of a multi-course dinner with Jort Kelder as keynote speaker.
