A Capitalia loan for real estate development is specialized financing for the acquisition of land and buildings, construction, renovation, and other real estate development projects in Riga and other cities in Latvia.

This type of financing is suitable for residential construction, commercial property development, renovation of existing buildings, and project completion when additional capital is needed before property sale or bank refinancing.

For real estate development projects, Capitalia typically offers loans ranging from around EUR 100,000 to more than EUR 1,000,000, depending on the project scale, collateral, and business plan.

The average loan term for such projects is approximately 12-24 months, with an individually determined interest rate reflecting project risk and collateral quality.

A real estate development loan is usually secured by real estate collateral: a land plot, the development project itself, existing buildings, or other properties, often with a first-rank mortgage.

Depending on the transaction structure, multi-rank mortgages, additional collateral, and personal guarantees from owners may also be required, reducing risk and enabling a larger financing amount.

A Capitalia real estate development loan is more flexible than a traditional bank loan, allowing capital to be raised at specific project stages and enabling faster decision-making.

This alternative financing is often used as a bridge until long-term bank credit or end-buyer financing is secured, complementing rather than replacing traditional bank financing.

To apply for a real estate development loan, you can submit information about the project, property, development schedule, cost estimate, financing structure, and the company's financial data.

Capitalia evaluates the project plan, projected cash flows, market situation, and collateral value, then prepares a financing offer and terms.

Capitalia real estate development loans are always secured by real estate collateral and are granted only after careful evaluation of the project and developer reputation.

The company has more than 15 years of experience and dozens of financed real estate projects without investor losses, which allows loans to be structured to reduce risk for both developers and investors.