Raising Capital in a Cautious Market: What’s Changed in 2025?

PropInvest Co.
Jul 28
3 min read

Post-election shifts, lingering inflation, and higher interest rates have created a new funding landscape.

Here’s how HNWIs are behaving differently in 2025, and what developers need to do to meet them where they are.

The Post-Election Climate: Uncertainty Breeds Caution

Whenever a general election comes and goes, the property sector holds its breath. 2025 is no exception. While the new government has outlined ambitious housing targets and planning reform, the market remains in a cautious holding pattern.

Developers aren’t the only ones watching closely, investors are, too.

High-net-worth individuals (HNWIs) with capital to deploy are no longer making snap decisions. They’re slowing down. Asking more questions. And waiting for clarity before they commit.

What this means:

No more handshake deals. Investors want detail, data, and delivery records.
FOMO is gone. Today’s investor isn’t driven by urgency, they’re driven by security.
Decision cycles are longer. You need more runway, better systems, and patience.

The Interest Rate & Inflation Hangover

We’re still feeling the effects of multiple base rate hikes. Even as inflation eases slightly, the scars remain. Investors remember:

The eroded returns on leveraged projects
Delayed exits due to shifting buyer affordability
How quickly once-safe projects turned uncertain

That’s made risk mitigation a non-negotiable.

They want to know:

How will this project perform in a worst-case market?
Is there a genuine contingency plan?
Are build costs fixed or variable?
Is the debt structured with flexibility in mind?

Gone are the days when “the numbers stack” was enough. Now, they want to know how they’re protected if things don’t go to plan.

What Investors Are Prioritising in 2025

This year, it’s less about the headline return, and more about the integrity behind the scenes. Based on the conversations we’re having weekly, here’s what we’re seeing:

1. Confidence in the Operator

Investors aren’t just betting on the project, they’re betting on you. They want to see:

A clear, repeatable model
Evidence of exits (especially in tougher markets)
Strong communication habits and reporting
Skin in the game

2. Clarity of Structure

You must be able to articulate:

Shareholder protections and priority returns
What happens in different exit scenarios
When they’ll be repaid, and how

Ambiguity kills deals in this market. Clarity = confidence.

3. Transparency About Risk

The days of glossing over risk to keep an investor warm are over. In fact, the developers who are radically transparent about risk are winning the most trust.

We’ve raised more capital by saying:

"Here’s the downside, here’s how we’re protecting you, and here’s how we’ll communicate if things shift."

That kind of honesty is refreshing, and rare.

What We’re Doing Differently at PropInvest

To meet this new investor mindset head-on, we’ve doubled down on:

Investor briefings and education: We run detailed calls to explain structure, site strategy, and risk exposure, before they even sign.
Robust shareholder agreements: No grey areas. Everything's locked in upfront.
Regular progress updates: Site videos, shared Google Drives, regular check-ins, and milestone reporting to keep confidence high throughout the build cycle.
Smaller, more frequent raises: In some cases, we’ve adjusted our capital strategy to reduce risk concentration and improve flexibility.