Financing Under Pressure: Who Will Fund Real Estate in the Future – and Under What Conditions?
- Gunnar Gombert STRATEGY CONSULTING
- Jul 10
- 3 min read
Insights from Teaching at IU with Industry Experts from MünchenerHyp and Ponti Capital Partners
The real estate financing market is under pressure. Rising interest rates, falling valuations, tighter regulation (including Basel III and IV), growing ESG requirements, and ongoing uncertainty are weighing heavily on development, transactions, and refinancing.
The key question is: Who will fund real estate projects in the future – and on what terms?
This was the central focus of a recent lecture block at the IU International University, where students of Real Estate Management explored the topic together with Prof. Dr. Gunnar Gombert and two distinguished guest speakers from the industry:
Ingo Gläser, Head of Development at Münchener Hypothekenbank, provided insights into the current lending environment from a banking perspective.
Prof. Dr. Florian Spitra, Founder and Managing Partner of Ponti Capital Partners, contributed practical viewpoints from project development, investment, and asset management.
The Financing Market Has Become More Selective
One thing quickly became clear during the discussion: Real estate financing is now more demanding, restrictive, and selective than ever.
🔻 Rising interest rates have significantly increased financing costs, which not only affect project viability but also reduce lending values.
📉 Falling valuations, especially in the office sector, have led to lower loan amounts and increased risk aversion among banks.
⚖️ Regulatory requirements, such as Basel III/IV and stricter capital rules, are forcing lenders to tighten risk management – often to the detriment of complex, innovative, or ESG-focused projects.
Ingo Gläser noted that the financeability of a project today – and even more so going forward – lies at the intersection of market value, risk assessment, and regulatory compliance.
Project Development Under New Conditions
From the developer’s perspective, the playing field has also shifted dramatically. Florian Spitra emphasized that many institutional investors are currently unable to raise capital for new projects, and many existing investments are under significant pressure.
Key challenges include:
Access to both equity and debt,
Reliable valuation in volatile markets,
and adaptability to political and regulatory uncertainty (e.g., ESG taxonomy, subsidies, rent control).
Spitra stated that to develop successfully today, you need more than just a strong product – you need trusted capital networks and the ability to manage risk professionally.
New Requirements in Valuation and Risk Management
In addition to traditional credit assessments, new dimensions of risk and value are gaining importance:
Detailed cash flow analyses, particularly regarding the sustainability of rental income
ESG risks and climate exposure as core elements of financing decisions
Exit strategies and alternative use concepts, in case of shifting market conditions
Students discussed how these new requirements influence financing decisions – and what capabilities developers and asset managers will need going forward.
Financing Remains Possible – but the Bar Has Risen
Despite the significantly more challenging environment, real estate financing remains possible. However, it requires a resilient concept, a solid equity base, ESG compliance, a proven track record, and transparent risk management.
The lecture at IU once again demonstrated the value of direct engagement with experienced practitioners – particularly in a market undergoing structural change.
Sincere thanks to Ingo Gläser (MünchenerHyp) and Florian Spitra (Ponti Capital Partners) for their insightful and practice-oriented contributions to teaching at IU.
