Success in 2024
With a newly placed or extended volume of CHF 1’031 million (previous year: CHF 918 million), Hyrock exceeded the CHF 1 billion mark in a challenging market environment in 2024. The share of non-traditional financing (bridge loans and mezzanine finance) continued to rise, with solutions of this kind already accounting for 60% of total volume. In the current environment, banks are very reluctant to provide construction financing. As a result, customers have had to resort to alternative financing approaches, according to Alessandro Carroccia, CEO of Hyrock.
The average loan amount per transaction was CHF 6.4 million. Hyrock has thus expanded its position as the Swiss market leader in both non-traditional real estate financing and the brokerage of mortgages of CHF 2 million or more.
Consulting expertise expanded in Geneva
In addition to its headquarters in Schindellegi and its office in Zurich, Hyrock has been present in Geneva since its foundation in 2018. Julien Moret has been recruited to enhance the expertise of the Geneva office. He will leverage his extensive knowledge to drive growth in French-speaking Switzerland and further develop the market. Julien brings many years of experience in real estate financing from his previous roles at Credit Suisse and Bank Julius Baer. Prior to joining Hyrock, he held a senior position at Crédit Agricole.
"In a difficult market environment, our business model has proven robust."
Outlook for 2025
2024 was a year of transition for the real estate industry, marked by a mix of contradictory trends. On the positive side, interest rates fell significantly while market and existing rents for residential properties continued to rise moderately. This led to improved cash flows for real estate companies. The outlook for construction financing and subsidies is less encouraging. These activities are crucial for society, given the increasing demand for space and a growing population. Government regulation (in particular lengthy building permit procedures and stricter building regulations) and the increased reluctance of financing banks in 2024 led to headwinds for construction projects. Despite declining market interest rates, Hyrock does not anticipate a recovery in the financing market, partly due to the impact of new regulatory frameworks like the Basel III final regulations. CEO Alessandro Carroccia summarised: "In a challenging market environment, our business model has demonstrated its resilience. This gives us the confidence to continue providing our clients with added value through the unique blend of real estate and finance, offering non-traditional solutions. In this context, we will soon be launching new products and services for construction loans and development projects."