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Market",false,"https:\u002F\u002Fcdn.griinstitute.org\u002Fuploads\u002Fhubnews\u002F01_PT_Debt_Slider_2025_10_31_13_05_39_1761926739.webp","https:\u002F\u002Fcdn.griinstitute.org\u002Fuploads\u002Fhubnews\u002F01_PT_Debt_Cover_2025_10_31_13_05_39_1761926739.webp","2025-10-31T00:00:00.000Z","Credit: Gemini","#FFFFFF",2405,"2025-10-31T13:05:39.000Z","2025-11-04T11:39:22.000Z",[1461],{"id":1462,"newsId":1447,"languageId":47,"title":1450,"subtitle":1463,"content":1464,"summary":978,"takeaways":1465,"seoTagConversionId":8,"seoTag":8,"seoTitle":1466,"seoKeywords":1467,"seoDescription":1468,"seoAbstract":8,"seoImage":1469,"createdAt":1470,"updatedAt":1471,"language":1472},2910,"Bank rigidity fuels alternative lenders as Portugal's market demands speed, flexibility, and willingness to price risk","The Portuguese real estate market is exhibiting remarkable strength, supported by the country&rsquo;s solid economic growth projections, contained inflation, and significant strides in fiscal consolidation.\u003Cbr \u002F>\r\n\u003Cbr \u002F>\r\nCrucially, the country&#39;s debt-to-GDP ratio has dropped substantially in recent years, while the improvement in its sovereign debt rating has made Portuguese 10-year bonds cheaper than French bonds, further attracting international capital.\u003Cbr \u002F>\r\n\u003Cbr \u002F>\r\nThe housing market, in particular, has seen phenomenal growth. During Q2 2025, the Portuguese house price index grew by 17.2% year-on-year - the fastest growth rate in the eurozone, which saw an average of 5.1%.\u003Cbr \u002F>\r\n\u003Cbr \u002F>\r\nThis explosive growth is fuelled by strong foreign demand, a chronic shortage of new supply, and investors seeking the relative safety of real estate over financial assets.\u003Cbr \u002F>\r\n\u003Cbr \u002F>\r\nSuch strong real estate growth comes with a rapidly changing financing landscape. Recent discussions among senior real estate leaders at \u003Cspan class=\"company-profile-link\" data-id=\"1\">\u003Cspan class=\"company-profile-link\" data-id=\"20971\">GRI Institute\u003C\u002Fspan>\u003C\u002Fspan>&rsquo;s \u003Ca href=\"https:\u002F\u002Fwww.griinstitute.org\u002Frealestate\u002Fgatherings?region=2\" target=\"_blank\">Portuguese Debt &amp; Alternative Finance Dynamics\u003C\u002Fa> roundtable, co-hosted by \u003Ca href=\"https:\u002F\u002Fwww.griinstitute.org\u002Frealestate\u002Fcompany-profile\u002Fbig-banco-de-investimento-global_9821\" target=\"_blank\">\u003Cspan class=\"company-profile-link\" data-id=\"9821\">BiG - Banco de Investimento Global\u003C\u002Fspan>\u003C\u002Fa>, highlight the increasing necessity of alternative financing to power the sector&rsquo;s next phase of growth.\r\n\u003Ch2>The Constraints of Traditional Lending\u003C\u002Fh2>\r\nTraditional banking is struggling to meet the new demands of the dynamic real estate development sector. Developers are encountering a rigid system that is not built for the complexity and speed required today.\u003Cbr \u002F>\r\n\u003Cbr \u002F>\r\nAlthough traditional financing is reported to be cheaper than alternatives, this low cost comes with stringent standards and low leverage, which do not suit riskier or less conventional projects.\u003Cbr \u002F>\r\n\u003Cbr \u002F>\r\nAnother key challenge is the lack of willingness of traditional banks to provide capital during the crucial earlier stages of development, such as the licensing phase and project conceptualisation. Rather, they show a clear preference to lend only once the building is physically on-site, and significant risk has been absorbed by the developer.\u003Cbr \u002F>\r\n\u003Cbr \u002F>\r\nFurthermore, traditional financing comes with rigid rules and slow processes; there is a fundamental lack of space for dialogue with banks, and decision-making processes are governed by inflexible internal &quot;god algorithms&quot;, market players report.\u003Cbr \u002F>\r\n\u003Cbr \u002F>\r\n\u003Ca href=\"https:\u002F\u002Fwww.griinstitute.org\u002Frealestate\u002Fevent\u002Fgri-credit-opportunities-re-debt-2025_4951\" target=\"_blank\">\u003Cimg alt=\"A group of business professionals attending a conference, discussing Portugal real estate and alternative finance, as suggested by the setting and overall context. A screen displays a logo featuring &quot;BiG&quot;.\" src=\"https:\u002F\u002Fcdn.griinstitute.org\u002Fuploads\u002Ffiles\u002F02_PT_Debt_Body_2025_10_31_16_04_16_1761926656.webp\" \u002F>\u003C\u002Fa>\r\n\r\n\u003Cdiv style=\"text-align:center\">\u003Cspan style=\"font-size:12px\">Leading players in the Portuguese real estate market gather in Lisbon to discuss the alternative financing scene. (Credit: \u003Cspan class=\"company-profile-link\" data-id=\"1\">\u003Cspan class=\"company-profile-link\" data-id=\"20971\">GRI Institute\u003C\u002Fspan>\u003C\u002Fspan>)\u003C\u002Fspan>\u003C\u002Fdiv>\r\n\r\n\u003Ch2>The Rise of Alternative Finance\u003C\u002Fh2>\r\nThe growing market space left by traditional banks for pre-construction and alternative financing is being aggressively filled by private credit funds and platforms, providing essential flexibility and speed.\u003Cbr \u002F>\r\n\u003Cbr \u002F>\r\nAlternative lenders are also reported to be more willing to price risk of earlier stages of development, such as the licensing phase, typically viewing this risk and demand as a premium.\u003Cbr \u002F>\r\n\u003Cbr \u002F>\r\nUnlike banks, alternative lenders are also able to offer higher leverage and are not bound by regulatory constraints, allowing them to finance a more diverse array of business clients and development models.\r\n\u003Ch3>Crowdfunding and Proptech: Democratising Access\u003C\u002Fh3>\r\nCrowdfunding has been cited as a significant trend, consisting of using a platform to connect companies needing to raise money with a wide base of investors. This model is becoming an essential way for small-to-medium developers, as well as proptech companies, to secure finance.\u003Cbr \u002F>\r\n\u003Cbr \u002F>\r\nFor smaller developers, this form of alternative finance provides a solution where project sizes are often too small, risky, or non-standard for large private credit funds or traditional banks, while also offering flexibility, scale, and innovation, enabling quick, simple, and remote access to capital, particularly for projects facing lengthy licensing delays that can span years.\r\n\u003Ch2>The Challenge of Product Mismatch\u003C\u002Fh2>\r\nDespite the real estate market&rsquo;s momentum, a mismatch remains between the high cost of alternative finance and the expectations of developers, particularly for smaller projects.\u003Cbr \u002F>\r\n\u003Cbr \u002F>\r\nWhile alternative lenders are providing a service by taking on high risk, the resulting high costs are often considered disproportionate, preventing many from fully adopting the solutions.\u003Cbr \u002F>\r\n\u003Cbr \u002F>\r\nFurthermore, the established culture of real estate investors, who are accustomed to providing a personal guarantee to a bank in exchange for the full reward, is creating a cultural barrier to accepting the higher-cost and shared-risk model of alternative finance.\u003Cbr \u002F>\r\n\u003Cbr \u002F>\r\nThe consensus remains that the opportunity for alternative finance in the Portuguese real estate market is huge, given the limitations of the classic, regulation-bound banking system. Now, the industry must adapt by developing new skills and creating financing tools that can address the diverse and evolving needs of a market transitioning towards an industrialised model of development.\u003Cbr \u002F>\r\n&nbsp;\r\n\u003Chr \u002F>\u003Cbr \u002F>\r\n\u003Cem>Thank you to our co-host \u003Ca href=\"https:\u002F\u002Fwww.griinstitute.org\u002Frealestate\u002Fcompany-profile\u002Fbig-banco-de-investimento-global_9821\" target=\"_blank\">\u003Cspan class=\"company-profile-link\" data-id=\"9821\">BiG - Banco de Investimento Global\u003C\u002Fspan>\u003C\u002Fa>, as well \u003Ca href=\"https:\u002F\u002Fwww.griinstitute.org\u002Frealestate\u002Fmember-profile\u002Feurope\u002Falexandre-david_43923\" target=\"_blank\">\u003Cspan class=\"data-profile-link\" data-id=\"43923\">Alexandre David\u003C\u002Fspan>\u003C\u002Fa> (\u003Ca href=\"https:\u002F\u002Fwww.griinstitute.org\u002Frealestate\u002Fcompany-profile\u002Fnorfin-sgfii-sa_1303\" target=\"_blank\">\u003Cspan class=\"company-profile-link\" data-id=\"14569\">Arrow Global\u003C\u002Fspan>\u003C\u002Fa>), Marcelo Carmo Silva (\u003Ca href=\"https:\u002F\u002Fwww.griinstitute.org\u002Frealestate\u002Fcompany-profile\u002Fbig-banco-de-investimento-global_9821\" target=\"_blank\">\u003Cspan class=\"company-profile-link\" data-id=\"9821\">BiG - Banco de Investimento Global\u003C\u002Fspan>\u003C\u002Fa>), \u003Ca href=\"https:\u002F\u002Fwww.griinstitute.org\u002Frealestate\u002Fmember-profile\u002Feurope\u002Fpedro-coutinho_18313\" target=\"_blank\">\u003Cspan class=\"data-profile-link\" data-id=\"18313\">Pedro Coutinho\u003C\u002Fspan>\u003C\u002Fa> (\u003Ca href=\"https:\u002F\u002Fwww.griinstitute.org\u002Frealestate\u002Fcompany-profile\u002Fbig-banco-de-investimento-global_9821\" target=\"_blank\">\u003Cspan class=\"company-profile-link\" data-id=\"9821\">BiG - Banco de Investimento Global\u003C\u002Fspan>\u003C\u002Fa>), \u003Ca href=\"https:\u002F\u002Fwww.griinstitute.org\u002Frealestate\u002Fmember-profile\u002Feurope\u002Fpedro-figueira_44107\" target=\"_blank\">\u003Cspan class=\"data-profile-link\" data-id=\"44107\">Pedro Figueira\u003C\u002Fspan>\u003C\u002Fa> (\u003Ca href=\"https:\u002F\u002Fwww.griinstitute.org\u002Frealestate\u002Fcompany-profile\u002Fcedrus-capital_20872\" target=\"_blank\">\u003Cspan class=\"company-profile-link\" data-id=\"20872\">Cedrus Capital\u003C\u002Fspan>\u003C\u002Fa>), and Ricardo Alexandre Martins Gomes Pereira (\u003Ca href=\"https:\u002F\u002Fwww.griinstitute.org\u002Frealestate\u002Fcompany-profile\u002Fhipoges-iberia-sl_2634\" target=\"_blank\">Hipoges\u003C\u002Fa>) for their valuable contributions to the discussion at \u003Ca href=\"https:\u002F\u002Fwww.griinstitute.org\u002Frealestate\u002Fevent\u002Fdebt-finance-dynamics-in-portugal_5087\" target=\"_blank\">Portuguese Debt &amp; Alternative Finance Dynamics\u003C\u002Fa>.\u003C\u002Fem>\u003Cbr \u002F>\r\n&nbsp;\r\n\u003Chr \u002F>\u003Cbr \u002F>\r\nThe financing conversation continues at the upcoming annual \u003Ca href=\"https:\u002F\u002Fwww.griinstitute.org\u002Frealestate\u002Fevent\u002Fgri-credit-opportunities-re-debt-2025_4951\" target=\"_blank\">\u003Cstrong>GRI Credit Opportunities &amp; RE Debt 2025\u003C\u002Fstrong>\u003C\u002Fa>, on 26th November in London.\u003Cbr \u002F>\r\n&nbsp;","\u003Cul>\r\n\t\u003Cli>The Portuguese real estate market is experiencing exceptional growth and fiscal stability, but traditional bank lending is proving too rigid and slow for the evolving needs of developers.\u003C\u002Fli>\r\n\t\u003Cli>Alternative finance is rapidly filling the market gap by offering greater flexibility, speed, and a willingness to price and finance higher-risk stages of development.\u003C\u002Fli>\r\n\t\u003Cli>A cultural mismatch and high cost of alternative capital for smaller projects are key challenges to the broader adoption of new financing models.\u003C\u002Fli>\r\n\u003C\u002Ful>\r\n","Alternative Finance in Portugal’s Growing Real Estate Market","gri institute, real estate, europe, investment, portugal, lisbon, porto, financing, alternative finance, lenders, banks, debt, credit, interest rates, development, funds, crowdfunding, leverage, traditional financing, capital, risk, licensing, economy","Portugal's real estate booms with 17.2% growth, but developers face rigid bank lending. Understand how alternative finance is stepping in, offering higher leverage and funding pre-construction risk, addressing a huge market gap for faster, flexible capital","https:\u002F\u002Fcdn.griinstitute.org\u002Fuploads\u002Fhubnews\u002F01_PT_Debt_Social_2025_10_31_13_09_01_1761926941.jpg","2025-10-31T13:05:44.000Z","2025-11-04T17:38:21.000Z",{"code":13},{"id":25,"color":27,"translations":1474},[1475,1477,1479],{"title":26,"slug":30,"language":1476},{"code":13},{"title":37,"slug":38,"language":1478},{"code":18},{"title":33,"slug":34,"language":1480},{"code":23},[1482,1490],{"id":65,"label":1231,"translations":1483},[1484,1486,1488],{"label":1231,"slug":1242,"language":1485},{"code":13},{"label":1245,"slug":1246,"language":1487},{"code":18},{"label":1249,"slug":1250,"language":1489},{"code":23},{"id":136,"label":1051,"translations":1491},[1492,1494,1496],{"label":1051,"slug":1062,"language":1493},{"code":13},{"label":1065,"slug":1066,"language":1495},{"code":18},{"label":1069,"slug":1070,"language":1497},{"code":23},[1499],{"name":689,"enName":689,"ptName":689,"iso2":1500},"PT",[1502],{"name":1503,"slug":1504,"image":1505,"order":115},"Helen Richards","helen-richards","https:\u002F\u002Fcdn.griinstitute.org\u002Fuploads\u002Fhubnews_author\u002FHelen_Richards_GRI_Institute_Profile_Pic_2025_11_04_10_50_11_1762264211.jpg",{"en":1507},"\u002Freal-estate\u002Fthe-alternative-finance-imperative-in-portugal-s-growing-real-estate-market",[1509,1510,1511,1512,1513,1514],"Infra Brazil","Infra Latam","Real Estate Brazil","Real Estate Europe","Real Estate India","Real Estate Latam"]