Development Finance for Residential Projects in Spain
Funding for small and mid-sized residential developers — up to 50% of Gross Development Value or 70% of project costs, arranged through our private funding network and supported for the full development period.
Monec arranges development finance for residential schemes in Southern Spain and the Balearic Islands. Facilities typically range from €250k to €10m or more, run 12 to 24 months, reach up to 50% of GDV or up to 70% of project costs, and are priced typically at 8–12% per annum, secured by a first mortgage. We are an independent advisory: we match the right project with the right funder — and stay alongside you as financial advisor for the full development period.
When development finance is the right tool
We advise small and mid-sized developers on their residential schemes, and we know this market in depth. Typical situations we handle:
- Ground-up development — financing construction of villas, apartment complexes or small residential schemes from a licensed plot.
- Completion funding — a partly built scheme that needs capital to reach completion and sale.
- Refinancing a development facility — replacing an expiring or unsuitable construction loan mid-project.
- Special situations — complex structures, non-resident developers, projects banks decline despite sound fundamentals.
Our value lies in matching the right project with the right funder, on terms that genuinely work for both sides — and our role does not end at the introduction.
Key Terms
Indicative terms for residential development finance in Spain. Every mandate is structured individually and final terms depend on the specific project and funder.
Interest is typically 8–12% per annum, driven by leverage, asset quality, location and the developer’s track record. Monthly interest payments are preferred by most funders, though payment in kind or full bullet structures can be negotiated in certain cases.
Funds are released in stages according to work progress: an independent quantity surveyor typically reviews the works monthly, and drawdowns follow his reports. Throughout the project we monitor that the remaining facility is sufficient to complete the works — and if a gap appears, we sit down with the developer early to find a solution, rather than waiting until money runs out.
LOAN SIZE
Ranges from 250K to 10M or moreLOAN PERIOD
Typically 12-24 monthsFUNDING LEVEL
Up to 50% of Gross Development Value (GDV), or up to 70% of project costsINTEREST
Typically 8-12% per annum; monthly payments preferred, payment in kind or full bullet payments negotiable in certain casesCOLLATERAL
Secured by a first mortgage on the propertyREGULATORY COMPLIANCE
All necessary licenses must be current and in placeBORROWER
Should be a Spanish company, though non-Spanish beneficiaries are acceptable; developer experience is a crucial factor for many loan providers
How we work on a mandate
Understand the situation
A focused first conversation: the property, the need, the exit. We tell you honestly whether the financing fits — and if it doesn’t, we say so.
Structure the mandate
We prepare a professional financing note that presents the case the way private lenders expect to see it: collateral, structure, exit, risks.
Go to the funding network
We approach the lenders whose criteria genuinely match — family offices, private funds and specialist lenders active in Spanish residential property.
Stay alongside for the full development
We manage terms, valuation, legal and notary through to first drawdown — then stay with you as financial advisor for the full development period, working throughout to guide the project towards a sound financial result.
Frequently asked questions
How much development finance can I raise in Spain?
Typically €250k to €10m or more — up to 50% of Gross Development Value or up to 70% of project costs, depending on the project and the funder.
What interest rates apply to development finance in Spain?
Typically 8–12% per annum, depending on leverage, asset quality, location and the developer’s track record. Each mandate is priced individually by the lender.
How are funds released during construction?
In stages, according to work progress. An independent quantity surveyor typically reviews the works monthly, and drawdowns are released against his reports — to the builders or the client, depending on how the project is set up.
What happens if project costs overrun?
We monitor throughout the project that the remaining facility is sufficient to complete the works. If a gap appears, we sit down with the developer early to find a solution, rather than waiting until money runs out and works are left unfinished.
What experience do lenders expect from the developer?
Developer experience is a crucial factor for many loan providers. A demonstrable track record of completed schemes materially improves both access to funding and terms.
How long does a development facility run?
Typically 12–24 months, matched to the construction programme and the sales or refinancing exit.
What areas do you cover?
Southern Spain and the Balearic Islands, with particular depth on the Costa del Sol — Marbella, Estepona, Benahavís and the wider Málaga province.
Related services: Bridge Loans · Equity Release · Refinancing · For Investors