Real estate developers face higher finance costs due to new rating approaches.
Real estate financing has become more complex due to new regulations, leading banks to assess risks more carefully. They use rating approaches to evaluate the risk of real estate projects and decide on loan approvals. A good rating can lower finance costs, while a bad rating can increase costs or lead to loan rejection. Real estate developers can optimize their rating preparation to reduce default risks. High-risk projects may face higher costs and lower profits, making them harder to realize.