We arrange property development finance in Italy for developers and investors who need €5m to €500m+. We are a broker with access to lenders, so we find the right lender for your scheme, negotiate the terms and manage the process through to drawdown.

What is Italy property development finance?

It is a loan that pays for the land and the construction or redevelopment of a scheme. The lender releases the money in stages as the work progresses, and the loan is repaid from the sale of the units or by refinancing the finished scheme. It is secured on the property.

Italy development loans for larger schemes

We focus on larger projects, from €5m up to €500m+. We do not arrange self-build loans or small facilities. Italian banks, debt funds and international lenders all look at development, but each has its own appetite for location, sponsor and structure. We take your scheme to the ones that fund at your size and in your location, and compare their offers for you.

What the loan can cover

A development loan can fund:

  • The purchase of the land or the building to be redeveloped
  • Construction or refurbishment costs, including the building contract and site works
  • Professional fees, such as architects, engineers and project managers
  • Interest during the works, normally added to the loan
  • Lender fees and a contingency for cost increases

The lender decides how much of each it will fund. Your own equity usually goes in first, and the loan is then released in stages as the work progresses.

Schemes we finance in Italy

  • Luxury and prime residential apartments and villas
  • Urban regeneration and conversion of offices, industrial buildings and historic properties
  • Hotels, resorts and branded residences
  • Build-to-rent, student and co-living schemes
  • Logistics and industrial units
  • Offices and mixed-use schemes
  • Land with a building permit, for phased delivery

Where we arrange development finance in Italy

We arrange finance for schemes across Italy. Lender demand is usually strongest in the main cities and the established leisure destinations:

  • Milan: residential, regeneration, offices, student and co-living schemes in the city and its surrounding area
  • Rome: residential, hotel and mixed-use schemes, including conversions
  • Turin, Bologna and Genoa: residential and regeneration schemes
  • Florence, Venice and Verona: hotels, luxury residential and historic building conversions
  • Naples and the south: residential and hospitality schemes
  • Lake Como, Lake Garda and Lake Maggiore: luxury villas, apartments and hotels
  • Tuscany and Umbria: boutique hotels, resorts and prime residential
  • Puglia, Sardinia, Sicily and the Amalfi coast: resorts, hotels and second-home developments

Schemes in other locations can still be funded. Lenders will look harder at demand for the product, so a strong sponsor, pre-sales or an operator in place all help.

Who we work with

  • Experienced developers with completed schemes behind them
  • International developers and funds building or redeveloping in Italy with a local team
  • Hotel and hospitality groups building or repositioning assets
  • Investors forward funding or joint venturing a scheme
  • Owners of land or buildings with permits in place who want to fund the works without selling

The borrower is normally a special purpose company (SPV) set up for the scheme. It can be incorporated anywhere in the world, including as an Italian company (S.r.l.).

The stages of a development loan

Most development loans move through three stages:

  1. Land or acquisition stage. The loan, or your equity, pays for the property. The lender takes a mortgage over it and checks the title and the planning position.
  2. Construction stage. Once the permits and conditions are in place, the lender releases funds in stages as the work is completed. A surveyor acting for the lender checks progress before each payment.
  3. Sales and repayment stage. As units are sold, or when the scheme is refinanced, the loan is repaid and the lender releases its security.

Knowing which stage you are at helps us choose the right lenders. Some fund all three stages in one facility, while others only fund the works.

How it works

  1. Send us the scheme. Tell us the location, permit position, costs, expected sales value, the loan you need and your experience.
  2. We approach lenders. We take it to the banks, debt funds and private lenders that fit.
  3. Compare terms. We compare the offers and negotiate the best one for you.
  4. Valuation and legal work. The lender values the scheme and your Italian lawyers and theirs complete the paperwork.
  5. Drawdowns. Funds are released in stages as the work progresses.
  6. Repayment. The loan is repaid from sales or a refinance.

The lenders we approach

We do not rely on one lender. Depending on your scheme we approach:

  • Banks, which are often the most competitive on price but can be more cautious on leverage and want to see strong sales
  • Debt funds and alternative lenders, which tend to be more flexible on structure and speed
  • Private lenders and family offices, which can move quickly on well-presented schemes
  • International lenders looking to fund Italian projects for experienced sponsors

We tell you which type suits your project and why, and we compare their terms side by side so you can decide.

Ways to structure the funding

Large Italian schemes are often financed in more than one layer:

  • Senior development loan: the main loan, secured on the property, which pays for the land and the works
  • Joint venture or equity partner: an investor puts in equity alongside you, often to reduce the cash you need to commit
  • Forward funding or forward sale: an investor agrees to buy or fund the finished scheme, which gives lenders more comfort on repayment
  • Syndicated loans: very large facilities shared between several lenders

We advise which structure suits your scheme and approach the right lenders for it.

What lenders want to see

  • Your track record on similar schemes
  • Proof of ownership of the property, and the building permit in place or a clear route to it
  • A clear budget and sales value, with a realistic programme
  • A builder and professional team you can name
  • Your own equity in the scheme
  • Sales, reservations or an operator in place where the scheme needs them
  • A clear plan for how the loan will be repaid

Documents to have ready

  • Company details and an ownership chart for the borrower and sponsor
  • Your track record, with completed schemes, costs and sales
  • Title and proof of ownership, or the purchase contract
  • Building permits and planning documents, including any conditions
  • A development appraisal showing costs, sales values and profit
  • Cost plan, programme and the building contract or tender
  • Architect plans and a list of the professional team
  • Sales evidence, reservations or operator terms
  • Evidence of your equity and where it comes from
  • Recent accounts and a net worth statement for the sponsor

Having these ready shortens the time it takes to get firm terms.

How to improve your chances

  • Get the permit position clear early, because it drives what lenders will fund
  • Show a clear profit after all costs and interest, with room for cost rises
  • Put real equity in ahead of the lender
  • Use a builder with a proven record on a fixed or capped price
  • Engage your Italian lawyer, notary and tax adviser early
  • Give us the full picture so we approach the right lenders first time

Exit and repayment

Lenders look at how the loan will be repaid before they agree it. The usual routes are:

  • Sale of units as they complete, including reservations signed before completion
  • Sale of the whole scheme or a block to an investor
  • A forward sale agreed before the works start
  • Refinance onto a longer term loan for hotel, rental or commercial schemes
  • Development exit finance to repay the build loan while the last units sell

What it costs

A development loan normally has interest, an arrangement fee, an exit fee, and the lender’s valuation and legal costs. Interest is usually added to the loan during the works rather than paid monthly. Terms depend on your scheme, your experience and the lender. We agree our own fee with you before we approach anyone, and we will give you an indication of likely terms once we have seen the project.

Why use a broker

Lenders differ widely on how much they will lend, what they charge and what they ask for. We deal with them every day, present your scheme the way their credit teams read it, and save you approaching them one by one. You deal with one team from first enquiry to drawdown.

Related finance

Talk to us about your Italian scheme

Send us the basics through the enquiry form and we will come back to you with an indication of lender appetite and likely terms.

FAQ

What is the minimum loan for development finance in Italy? We arrange facilities from €5m, and up to €500m+ for the largest schemes.

Can a foreign developer borrow in Italy? Yes. Lenders lend to an SPV, which can be incorporated in any country, and they check the source of your equity.

Do I need a building permit first? Lenders generally want the building permit in place before they fund construction. Some will fund the acquisition earlier where the permit route is clear.

Can you finance a conversion or redevelopment? Yes. We arrange finance for converting offices, industrial buildings and historic properties, as well as new builds.

How is the loan repaid? From unit sales, a sale of the whole scheme, a forward sale, or a refinance once the scheme is complete.

How much can I borrow? It depends on the scheme, the sponsor and the lender. Send us the project and we will tell you what looks achievable.

How long does it take to arrange development finance in Italy? It depends on how ready the scheme is. Valuation and legal work usually take the longest, so having your documents ready saves time.

What security does the lender take? Normally a first mortgage over the property, plus security over the borrower’s shares and key contracts. Your Italian lawyer and notary handle the registration.

Are you a lender? No. We are a broker. We place your scheme with banks, debt funds and private lenders and negotiate the terms for you.

Do you charge a fee? We agree our fee with you in writing before we approach any lender.

    GET IN TOUCH









    Italy Property Development Finance and Loans 21 October 2026