Real Estate Loans Market Outlook - 2027

A real estate loan is a type of long-term borrowing and allows consumers to borrow money from the bank or investors in exchange for an interest credit period on the terms of the consumer’s income & credit score. Generally, the real estate loan is approved with a lower principal value of the property and incorporates the interest incurred into the total value of the property in case of non-repayment of the loan. Furthermore, real estate loan charges an interest on the money offered in terms of the duration of the loan. Moreover, consumer’s income is analyzed during the application process, and the real estate loan is provided less than the borrower’s principal salary for the duration of loan. Therefore, the growth in the demand for long-term real estate loans for fixed period of time is expected to boost the growth of the real estate loans market size in the near future.

The global real estate loans market is segmented on the basis of Type, End User, and Region. Based on Type, the real estate loans market is divided into Conventional Mortgage Loan, Hard Money Loan, Private Money Loan, Fix-and-Flip Loan, Property Loan, and Others. On the basis of end user, the market is categorized into Personal and Commercial and others. Geographically, the market is analyzed across several regions such as North America, Europe, Asia-Pacific, and Latin America, Middle East & Africa (LAMEA).

Key players operating in the global real estate loans industry include Quicken Loans, SoFi, LoanDepot, New American Funding, Reali, Citi Mortgage, Guaranteed Rate, Chase, Busey Bank, and PennyMac. These companies have adopted several strategies such as product launches, partnerships, collaborations, mergers & acquisitions, and joint ventures to strengthen their foothold in the global market. 

COVID-19 scenario analysis

• The demand for real estate loan platforms is expected to surge during the COVID-19 pandemic due to which the demand for the online assessment & processing for the real estate loan has increased tremendously to prevent the transmission of coronavirus.
• The governments across the affected countries have declared lockdown over the past few months, which has further disrupted the financial market and massive decline in availing real estate loan among consumers has been anticipated in the market. Moreover, the financial sector is majorly affected and has severely hampered the demand for new investment, and the consumers property was witnessed to be declining due to rise in interest rate during the pandemic situation.

Top impacting factors: real estate loans market share, scenario analysis, drivers, and impact analysis

Increase in adoption of artificial intelligence & machine learning based real estate loans, inferior operating cash for the development, and lower market risk for real estate loans are driving the growth of the market. However, uncertainty at the time of unprecedented incidents such as COVID-19 is expected to hamper the growth of the market. Contrarily, advanced & innovative improvements in the real estate loans can be seen as an opportunity for the market investments.

The global real estate loans market trends are as follows:

Lower market risk for real estate loans:

The real estate loans are easy to apply with a higher growth for the market investors and the banks. During the pandemic, the real estate loans is anticipated to prosper after the devasting downfall of decline in the demand for the real estate loans. Furthermore, the investors have been investing a huge amount since the downfall to achieve higher returns, which therefore helps in recovering the losses for the investors during the coronavirus outbreak. Moreover, the market risk for the real estate loans are lower for the investors, as the borrowers are required to grant the permission to take over the property in case on non-payment of the loan amount. Therefore, the lower market risk for real estate loans, will boost the growth for the global real estate loans market during the forecast period.

Rise in adoption of artificial intelligence and machine learning based real estate loans:

The real estate loan investors are adopting & implementing artificial intelligence (AI) & machine learning (ML)-based technologies. As it helps in adding the advanced proficiencies such as easy accessibility and transparency to the real estate loan consumers, which further opens up the growth avenues for the market. For instance, Reonomy which is a real estate company, uses AI & ML to automate the aggregation, feature extraction and the clean-up from a large amount of information used in the investment process on over 50 million commercial real estate properties. Furthermore, the above mentioned technological based developments which enhances fast, easy and transparent process for generating finance into the market with higher returns. Therefore, the rise in adoption of artificial intelligence and machine learning based real estate loans platform is expected to foster the market growth for the global real estate loans industry during the forecast period.

Key segments covered:

Key benefits of the report:    

• This study presents analytical depiction of the global real estate loans market along with the current trends and future estimations to determine the imminent investment pockets.    
• The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the market share.     
• The current market is quantitatively analyzed from 2020 to 2027 to highlight the global real estate loans market growth scenario.         
• Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.    
• The report provides a detailed market analysis depending on the present and future competitive intensity of the market.

Market scope and structure analysis:

Questions answered in the real estate loans market research report:    

• Which are the leading players active in the global real estate loans market forecast?
• What would be the detailed impact of COVID-19 on the global real estate loans market analysis?
• What are current trends that would influence the market in the next few years?
• What are the driving factors, restraints, and opportunities of the global real estate loans market?
• What are the projections for the future that would help in taking further strategic steps?