In 2020, 80% of bridge loans were related to the purchase or sale of a property. Investors wanted to seize short-term opportunities or a sale was delayed, resulting in a need for liquidity.
“Furthermore, the demand for bridge loans is significantly greater than the supply.”
The share of this customer group has decreased significantly and accounted for less than one third of all transactions in the course of 2022. The proportion of real estate investors pursuing aggressive growth strategies has decreased - but completely new demand groups have emerged, causing overall demand for bridge financing to further increase.
Today, mezzanine and bridge financing largely operate in tandem and can hardly be differentiated.
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