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Secured property debt market attractive for investors

Some 63% of real estate professionals believe the secured property debt market is attractive for investors according to research by Fitzrovia Finance.

Of the 63%, almost half (48%) say this is due to opportunities arising from the impact of increased regulation on mainstream lenders and the growing capital requirements placed on them when providing short-term and development property finance.

A further 41% said the market is attractive because of a supply shortage in the UK housing sector.

When asked specifically about the residential property development loans market, 37% said it is attractive for investors whilst 11% did not not consider it attractive at this time.

Real estate professionals believe the overall residential property lending market will remain static this year, whilst 30% expect it to grow.

Brad Bauman, chief executive at Fitzrovia Finance, 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.”

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