What is private property debt ?

Definition

Private property debt, also known as property crowdfunding, is an investment that enables investors to lend directly to property operators (developers, property dealers). The platform connects project organisers seeking to finance their ventures with investors looking to grow their savings.

In practical terms, the operator (the borrower) issues a bond, and the investor becomes a lender by subscribing to this bond.

The private property debt market in France

Following several years of strong growth, the sector has been undergoing a period of consolidation since 2022, characterised by rising interest rates and a slowdown in the property market. In 2025, French platforms raised €845 million across approximately 1,000 funded transactions, with an average gross return of 11 per cent.

This more challenging environment is also reflected in a greater number of projects experiencing repayment delays – a market reality that is important to bear in mind: private property debt remains an investment carrying a risk of capital loss, regulated by the AMF.

How does it work?

By subscribing to a bond issue, the investor generally lends:
At an interest rate set in advance, typically between 8% and 12% gross
Over a predetermined term, most often between 12 and 36 months

The developer pays interest to its lenders at regular intervals, then repays the principal on the project’s maturity date, usually upon the sale of the financed development.

What types of projects are involved?

The range of property projects that can be financed via private property debt is varied:

• Property development: construction of new homes
• Refurbishment of residential properties, offices or retail premises
• Extension of an existing building
• Property dealer: bulk purchase followed by resale in individual units
• Sale with right of repurchase: a notarised deed allowing the original seller to sell their property with the option to buy it back, subject to the return of the purchase price and reimbursement of costs incurred

Why do developers choose this method of financing?

As with a private individual’s purchase of a property, banks require developers to provide a substantial equity contribution in order to grant a loan. To supplement this contribution, developers may resort to co-development, but this involves sharing the profit margin in proportion to the co-financed share.

Private property debt offers an alternative: it allows developers to top up their equity without diluting their profit margin, whilst providing access to funding much more quickly than through traditional banking channels – typically taking around one month from application to disbursement of funds

Updated on: 17/09/2026