Development Finance France | Residential and Commercial Loans | FR

France Development Finance: A Complete Guide for Property Developers

France Development Finance remains one of Europe’s most attractive property development solutions, fueled by strong domestic demand, consistent international capital inflows, and solid long-term fundamentals across residential, commercial, and mixed-use sectors.

From luxury apartments in Paris to villas along the French Riviera or commercial schemes in regional cities, securing the right development finance is essential to unlock project potential and maintain cash flow throughout construction.

Development finance in France provides short- to medium-term funding tailored for property developers, investors, and companies. Whether you are a domestic developer or an international investor, understanding how development loans work, who qualifies, and how deals are structured is critical for success.

This guide explains key considerations for accessing development finance in France, including eligibility criteria, loan-to-cost and loan-to-value limits, exit strategies, and the role of specialist brokers. We also highlight practical steps, funding strategies, and important metrics to help you structure and execute your development project efficiently while mitigating risk.

With the right financing approach, developers can accelerate acquisitions, optimize construction schedules, and confidently bring projects to market, ensuring both short-term liquidity and long-term returns.

One can also borrow up to a 100% of the build cost provided that it is within 60% – 70% of Gross Development value (GDV) depending on the lender and experience (set on a case by case basis). Maximum term you can borrow for development finance is between 12- 36 months. Exit is usually sale of properties or refinancing.

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France Development Finance Uses

• 90% loan to cost & or 75% loan to GDV
• Borrowing from £1,000,000 to £500,000,000
• New-builds & conversions
• Single-units or multi-unit projects
• Houses, flats, property with a commercial element
• Change of use
• Developers of all experiences, including first time buyers
• Regulated & unregulated products
• Acquisition & completion of partially built developments
• Mezzanine & joint venture
• 100% of the build costs & up to 70% land cost on day 1
• Joint venture possibilities
• Acquisition and refurbishment then sale

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What Is Development Finance in France?

Development finance in France is a short- to medium-term funding solution designed to support property developers, investors, and corporate entities in acquiring land, funding construction costs, or completing refurbishment and conversion projects. Unlike traditional mortgages, development loans are primarily structured around the feasibility, projected value, and exit strategy of the project rather than the borrower’s personal income or credit profile.

These facilities are typically interest-only during the construction or refurbishment period, helping developers manage cash flow while the project progresses. Repayment is structured around a clearly defined exit, such as the sale of completed units, pre-sold apartments, or refinancing onto long-term investment or commercial finance. This approach ensures that funding is closely aligned with project milestones and revenue generation.

How French Development Finance Differs from Standard Mortgages

Traditional French mortgages are income-driven and generally conservative, focusing on the borrower’s ability to service debt over long periods. In contrast, development finance is asset-led, with lenders evaluating:

• Projected completion value and potential resale or rental yields

• Construction costs and contingency planning

• Market demand and timing of sales

• Exit strategies, including pre-sales, refinancing, or staged sales

This asset-based structure makes development finance particularly suitable for:

• Professional developers undertaking large or complex projects

• Investors seeking to acquire and add value to property assets

• Overseas buyers and expatriates who may not meet strict domestic income requirements

Why Developers Choose Development Finance

Developers and investors opt for development finance in France for several strategic reasons:

• Leverage for larger projects: Developers can undertake higher-value developments without tying up personal capital.

• Flexibility: Loans can be structured to match construction schedules, staged drawdowns, and project-specific cash flow needs.

• Speed of access: Specialist lenders often provide faster decisions and funding than traditional banks, which is critical for competitive acquisitions.

• Funding complex projects: Development finance accommodates conversions, refurbishments, mixed-use schemes, and niche property types that traditional lenders may consider too risky.

• Support for overseas investors: International developers benefit from lenders and brokers experienced in cross-border compliance, legal structuring, and tax considerations.

By aligning funding with the project’s development milestones and exit strategy, development finance in France allows developers to efficiently manage risk, optimise returns, and complete projects that may not be feasible under traditional lending.

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Who Qualifies for Development Finance in France?

Development finance in France is accessible to both domestic and international borrowers, as long as the underlying project fundamentals are strong. Lenders focus on the viability, profitability, and exit strategy of the development, rather than solely on the borrower’s personal credit profile.

Eligible Borrowers

Lenders typically consider:

• Experienced property developers with a proven track record of completed projects

• First-time developers supported by qualified architects, project managers, and professional teams

• Corporate structures and Special Purpose Vehicles (SPVs) that isolate project risk

• Overseas investors and expatriates seeking to participate in the French property market

While a healthy credit profile is important, the lender’s primary evaluation revolves around the strength and feasibility of the development project itself.

Key Considerations for Overseas Investors

Foreign buyers face additional factors when applying for development finance in France. These include navigating:

• French legal structures and company registration requirements

• Taxation rules for property ownership and profit repatriation

• Residency regulations impacting lending eligibility and loan terms

Working with an experienced broker simplifies these complexities, ensuring full compliance and providing access to lenders familiar with cross-border and expatriate financing. Brokers can also advise on the optimal legal and tax structures for SPVs or corporate vehicles, improving the likelihood of loan approval and favourable terms.

By understanding these eligibility requirements and strategic considerations, both domestic and international borrowers can confidently secure the right development finance to bring their French property projects to market.

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Types of Property Development Projects We Finance in France

France offers a dynamic and diverse property development market, and lenders are open to financing a wide range of project types. Understanding which projects are eligible helps borrowers structure their applications effectively and secure optimal terms.

Ground-Up Construction Projects

These include residential apartment blocks, luxury villas, and commercial buildings constructed from scratch on permitted land. Lenders carefully assess:

• Build costs and contingency allowances

• Construction timelines and milestones

• Projected sales values and rental yields

Funding is structured around risk, with lenders considering both the exit strategy and the developer’s experience. Ground-up construction projects remain a core focus for domestic and international borrowers seeking development finance in France.

Conversions and Refurbishments

Projects involving the conversion of offices to residential units, hotels to apartments, or large-scale refurbishments are widely financed under development loan structures. Lenders evaluate:

• Project feasibility and regulatory approvals

• Market demand for the intended asset class

• Expected returns and resale or rental potential

These types of projects often provide faster returns than ground-up builds, making them attractive to both investors and developers looking for flexible short- to medium-term financing.

Mixed-Use Developments

Developments combining residential, commercial, and retail components can enhance project viability and diversify income streams. Lenders assess:

• The strength and diversity of income sources

• Exit strategy robustness for each component

• Market demand for each segment in the targeted location

Mixed-use projects are increasingly popular in urban centres like Paris, Lyon, and Marseille, where diversified returns mitigate risk and improve lender confidence.

Specialist or Niche Projects

Beyond traditional residential and commercial developments, lenders may also finance:

• Hospitality projects such as boutique hotels or serviced apartments

• Student accommodation or co-living schemes

• Light industrial and logistics developments in high-demand locations

These specialist projects are assessed on market demand, location strength, and the developer’s track record. Access to an experienced broker can improve approval odds by matching borrowers with lenders who understand niche asset classes.

By financing a broad spectrum of development projects, lenders in France support domestic and international developers in achieving both short-term liquidity and long-term profitability.

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Residential Development Finance in France

Residential development remains the most active and competitive sector for development finance in France, attracting both domestic developers and international investors. Lenders are comfortable funding projects across a wide range of residential property types, provided the fundamentals, location, and exit strategy are sound.

Apartments, Villas, and Housing Schemes

Lenders provide finance for projects ranging from small multi-unit refurbishments to large-scale apartment developments. Key considerations for approval include:

• Location: Urban centres like Paris, Lyon, and Marseille or high-demand suburban areas

• Market demand: Realistic pricing and demonstrated buyer or rental interest

• Regulatory compliance: Planning permissions, building codes, and local authority approvals

• Developer experience: Proven track record or strong professional project teams

Structured development finance allows developers to cover acquisition, construction, and professional fees while maintaining flexibility for project execution.

Seasonal and Luxury Residences

France’s premium markets, such as the French Riviera, Provence, and the Alpine regions, attract high-net-worth individuals and international buyers. Developers in these locations can access specialist lenders who understand:

• Seasonal demand cycles and luxury market pricing

• High-value construction costs and bespoke finishes

• Exit strategies including sale to domestic or international clients

These loans are often structured to accommodate staggered cash flow requirements, allowing developers to align funding with construction milestones and market timing.

Emerging Residential Opportunities

In addition to traditional luxury and urban housing, lenders are increasingly financing:

• Student accommodation and co-living developments in university cities

• Renovation of historic buildings into modern apartments

• Sustainable or eco-friendly residential schemes appealing to a growing market segment

By leveraging residential development finance in France, developers can accelerate acquisitions, optimize construction timelines, and confidently deliver projects that meet market demand while protecting returns.

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Commercial and Mixed-Use Development Loans in France

Commercial development finance in France is available for a wide range of assets, including offices, retail units, logistics warehouses, and mixed-use schemes that combine residential, commercial, and retail components. These loans are designed to support developers and investors seeking to deliver projects that generate stable cash flow and long-term returns.

Risk Assessment for Commercial Projects

Lenders place significant emphasis on:

• Tenant demand and market analysis: Understanding current and future occupancy trends

• Pre-let or pre-sale agreements: Securing commitments from tenants or buyers before construction starts

• Exit strategy and liquidity: Demonstrating clear options to refinance, sell, or lease the asset

This is especially critical for projects outside major urban centres, where market dynamics may be less predictable. Detailed feasibility studies, professional market research, and tenant pre-commitments greatly enhance the likelihood of approval.

Structuring Commercial Loans

Commercial and mixed-use loans are typically more complex than residential finance and may include:

• Staged drawdowns: Releasing funds in phases tied to construction milestones

• Interest reserves: Covering interest payments during the construction period

• Longer construction periods: Flexible terms to accommodate larger or multi-phase developments

• Custom exit strategies: Structuring repayment around rental income, pre-sales, or refinancing

Understanding lender expectations early in the process reduces delays, improves credibility, and allows developers to negotiate terms that match the project’s cash flow requirements.

Mixed-Use Development Opportunities

Projects blending residential, office, retail, and hospitality components are increasingly attractive in urban and regional markets. Lenders assess:

• Diversified income streams to mitigate risk

• Market demand for each component

• Robust exit strategies for both individual and combined elements

With careful planning, structured lending, and professional guidance, commercial and mixed-use development finance in France enables developers to unlock high-potential projects while balancing risk and return.

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Land Acquisition and Land with Planning Finance

Land purchase can form part of a development finance facility or be funded separately.

Land Without Planning Permission

Finance is more limited without planning consent, but specialist lenders may consider land loans where planning prospects are strong. Brokers can structure contingent agreements tied to planning approval milestones.

Land With Planning Approval

Having a Permis de Construire significantly improves loan terms, reduces lender risk, and accelerates project commencement.

Loan-to-Cost and Loan-to-GDV Explained for French Developments

Understanding leverage is key when structuring a development loan.

Typical Leverage Levels

• Loan-to-cost: up to 65–75%
• Loan-to-Gross Development Value (GDV): typically capped at 60–70%

Higher leverage may be available for experienced developers with strong exits and proven track records.

Why Leverage Matters

Appropriate leverage balances developer equity with lender risk. Over-leveraging can create project vulnerability, while under-leveraging may unnecessarily tie up capital.

Typical Development Finance Rates and Terms in France

Pricing varies based on risk, location, and borrower profile.

Interest Rates and Fees

• Interest: typically charged monthly or rolled up into the loan
• Arrangement fees: usually 1–2% of the loan
• Exit fees: lender dependent and based on project size

Terms usually range from 12 to 36 months, with extensions possible subject to lender approval.

Structuring Interest Payments

Interest-only during construction reduces cashflow pressure. Some lenders offer capitalized interest or flexible drawdown structures to align with project cashflow needs.

Equity Requirements and Developer Experience Criteria

Borrowers are expected to contribute meaningful equity into the project.

Experience Versus Professional Team Strength

First-time developers can still secure finance if supported by reputable contractors, architects, and project managers. Lenders assess the combined experience of the team and the credibility of the business plan.

Equity Contribution Guidelines

Typically, developers are expected to contribute 25–35% of total project cost, though this can vary depending on lender appetite and project complexity.

The French Development Finance Application Process

The process is more structured than many borrowers expect.

Key Documents Required

• Detailed development appraisal and cost plan
• Build costings and construction schedule
• Planning permission documentation
• Exit strategy evidence and sales projections

Timeline for Approval

Preliminary approval can take 2–4 weeks, with full underwriting and legal review typically completed within 6–8 weeks.

Planning Permission, Permis de Construire, and Local Compliance

French planning regulations are strict and localised.

Importance of Permis de Construire

Most lenders require full planning approval before releasing development funds. Compliance with local zoning, environmental rules, and building regulations is essential.

Environmental and Heritage Considerations

Projects in historic districts or environmentally sensitive areas may require additional studies and approvals, which must be factored into project timelines and budgets.

How Drawdowns and Monitoring Surveyors Work in France

Funds are released in stages, aligned to construction milestones.

Role of the Monitoring Surveyor

Independent surveyors inspect progress before each drawdown, protecting both lender and borrower. They verify completed works, adherence to cost schedules, and overall project quality.

Staged Payments and Milestone Tracking

Drawdowns typically occur at key construction stages, such as foundation completion, structural works, and practical completion. This ensures lender security while supporting developer cashflow.

Exit Strategies: Sales, Refinancing, and Stabilisation Loans

Every development loan must have a clear and credible exit.

Common Exit Routes

• Sale of completed units to investors or homeowners
• Refinance onto long-term investment mortgages
• Portfolio stabilisation loans for larger multi-phase developments

Importance of Exit Strategy in Loan Approval

Lenders assess exit strength from day one. A clear, realistic exit plan reduces risk and enhances borrowing capacity.

Why Use a Broker for Development Finance in France?

The French development finance market is fragmented and relationship-driven.

Broker Value Beyond Rate Shopping

A specialist broker structures the deal, navigates cross-border issues, and accesses lenders not available directly to borrowers. Brokers also manage documentation, liaise with surveyors, and advise on compliance and structuring.

Maximising Funding Options

Brokers can combine multiple funding sources, including mezzanine finance, equity injections, and senior loans, to optimise project leverage and cost of capital.

How Platinum Global Bridging Finance Structures French Development Deals

Platinum Global Bridging Finance acts as a broker, not a lender. We structure development finance solutions tailored to complex, high-value projects across France.

Asset-Led, Bespoke Financing

Our approach focuses on project viability, asset quality, and exit strategy rather than rigid bank criteria. This allows us to secure funding for experienced developers, overseas investors, and complex structures.

End-to-End Support

From initial appraisal to drawdown management and exit strategy execution, we provide guidance and support at every stage. Our network of lenders and surveyors ensures fast, reliable, and tailored funding solutions.

If you are planning a development project in France and require tailored development finance, a properly structured solution can make the difference between approval and delay. Working with an experienced broker ensures your project secures the right funding at the right terms, allowing you to focus on delivering a successful development.

What Are the Main Development Finance Costs?

Fees, charges and general borrowing costs vary significantly from one lender to the next. The following will apply in most instances as the primary costs of development finance:

Facility fee – More commonly referred to as an arrangement fee, the facility fee is calculated as a percentage of the total cost of the loan (gross or net).

Interest rate – Interest on a development finance loan can be charged on an annual or monthly basis. Annual interest rates of 7% are not uncommon, as are monthly interest rates of 1%. Longer-term facilities attach lower rates of interest, though cost more than those that are repaid quicker.

Exit fee – Sometimes called a completion fee, the exit fee is usually calculated as a percentage of the total cost of the loan (gross or net). Some lenders charge a percentage of the total value of the completed project – not the sum borrowed.

Broker fee – Some brokers offer their services free of charge for customers, receiving commissions from lenders upon successfully referring customers. Some brokers impose a fixed fee for their services or charge a percentage of the total value of the loan.

These are just some of the primary costs to take into account when considering French development finance. Working with an independent broker will help ensure you gain access to the best possible deal to suit both your requirements and your budget.

If a fee is charged, you will be informed of this in our initial quotation.

Other Development Finance Costs to Take Into Account

Additional development finance costs to take into account (which may or may not be applicable) include the following:

Valuation fees – It will usually be necessary for an initial valuation to be carried out by a neutral third party, in order to assess the open market value of the security. This will also typically include a projected valuation of the completed project.

Application fees – Some lenders and brokers impose fees simply for submitting an initial application, or seeking advice on development finance.

Legal fees – If it becomes necessary to hire a solicitor or seek qualified legal advice, the applicant will be responsible for meeting all such costs accordingly.

Administration fees – This is a somewhat vague term, which can apply to almost any additional cost imposed by the lender. Some brokers also charge administration fees –

Monitoring fees – Development finance lenders will naturally need to monitor the progress of the project, in order to ensure it is reaching its predetermined goals. This is to make sure their investment is sound, and the funds allocated are being used as agreed. All monitoring fees are picked up by the borrower.

Draw down fees – Each time a new installment of funds is transferred to the borrower, an additional fee known as a draw down fee may apply. This could be a set fee, or charged in accordance with the size of the installment.

Telegraphic Transfer fee (TT Fee) – This is a cost imposed by the banks handling the money transfers, which in the case of development finance can be comparatively large. Nevertheless, TT fees are generally quite small and charged at a fixed rate.

The Development Finance Process

Development Loans For France are always tailored to the requirements of the borrower and the specifics of the project. There are several key stages of development finance that remain relatively constant, which are as follows:

• Initial enquiry and obligation-free consultation
• Comparison of deals from specialist UK lenders
• Submission of initial application to suitable lenders
• Agreement in principle issued to the borrower
• Site visit to establish the project’s viability
• Independent valuation of the project’s total value
• Formal loan offer and final terms
• Solicitor involvement for legal support and advice
• Completion of the loan and first payment (drawdown)
• On-going instalments to fund the project
• Repayment of the loan as agreed at a later date

How is Development Finance Repaid in France?

You will only be considered eligible for development finance if you can show the lender evidence of a viable exit strategy. This means the method by which you intend to repay the loan, which in most instances involves one of the following:

• Sale of the property – where the property or site is sold upon completion of the project, raising funds to repay the loan in full.
• Refinancing the property – a developer exit product (usually offered at a lower rate of interest) is taken out to repay the initial loan.
• Long-term refinancing – suitable where the developer intends to retain ownership of the property long-term, perhaps to rent it out at a profit.

How Development Finance Facilities Are Typically Repaid in France.

Interest is usually added to a development finance loan on a monthly basis. This is why it is advisable to repay a development loan at the earliest possible stage, in order to minimise overall borrowing costs.

In most instances, the total balance of a development finance loan is repaid through refinance or sale of the property:

• Build to sell – This applies when the developer completes a project with the intention to sell it (in full or in part) to cover the costs of the loan.
• Build to rent – This applies when a longer-term borrowing facility is used to repay the initial loan, while enabling the developer to retain ownership of the property to rent it out.
• A combined approach – This applies when the development is partially sold off upon completion, though a proportion is retained by the developer to be rented out.

Development Exit Finance

Some developers use developer exit finance to pay off their development finance debts prior to selling the development after its completion. The benefits of development exit finance include:

• Increasing profits and cutting costs, as exit finance can be a cheaper alternative to development finance at this stage.
• Bridging gaps between completion and sale, as the current loans term may come to an end before the sale is completed.
• Freeing up capital at an earlier date, enabling developers to get started on their next projects before completion of the sale.

By definition, exit finance is a specialist type of bridging loan – offered with a low rate of interest and as a strictly short-term lending facility.

Frequently Asked Questions about France Development Finance

What is development finance in France?

Development finance in France is short- to medium-term funding used to acquire land, cover construction costs, or complete refurbishment projects. Unlike standard mortgages, it is asset-led and focuses on the project’s viability rather than personal income.

Who can apply for development finance in France?

Both domestic and international developers can apply. This includes experienced developers, first-time developers with professional teams, and overseas investors using corporate or SPV structures.

What types of projects can be financed?

Projects can include residential apartments and villas, commercial buildings, mixed-use developments, land acquisitions with or without planning permission, and large-scale refurbishments or conversions.

What is the typical loan-to-cost and loan-to-GDV?

Loan-to-cost usually ranges from 65–75%, while loan-to-Gross Development Value (GDV) is typically capped at 60–70%, depending on project risk, developer experience, and exit strategy.

Do I need planning permission to get finance?

Most lenders require full planning permission (Permis de Construire) before releasing funds. Projects without permission may be financed in limited circumstances if the planning prospects are strong.

How are funds released during construction?

Funds are released in stages, aligned with construction milestones. An independent monitoring surveyor inspects progress before each drawdown to ensure quality and compliance.

What exit strategies are acceptable?

Common exit strategies include selling completed units, refinancing onto long-term investment mortgages, or using portfolio stabilisation loans for multi-phase developments. Lenders assess exit feasibility before approving finance.

What equity is typically required from developers?

Developers are usually expected to contribute 25–35% of the total project cost. First-time developers may need to provide more equity unless supported by an experienced professional team.

Can overseas investors secure development finance in France?

Yes. Overseas investors can access French development finance, often via SPVs or corporate structures. Using a specialist broker helps navigate legal, tax, and regulatory requirements.

Why use a broker for French development finance?

Brokers provide access to multiple lenders, structure finance for complex projects, manage documentation, and improve approval chances for both domestic and international developers. They streamline the entire process and secure the best possible terms.