Top 5 European Real Estate Crowdfunding Platforms
Real estate crowdfunding is a way in which you can directly invest in a real estate property without having the capital to buy the full property. Real estate crowdfunding platforms gather capital from multiple investors and use it to make real estate loans.
You invest in shares of a real estate property and receive payments either from rental income or from the sale of the property.
In the past, everyday investors were able to invest in real estate only through a REIT (real estate investment trust) and this was not feasible for most individuals. In the last few years, changes in legislation opened the door to crowdfunding in the real estate sector. Real estate developers can now use crowdfunding platforms when they look for financing their projects.
Some of the real estate crowdfunding platforms I like are listed below.
Property Partner is a UK real estate crowdfunding company that buys properties for rent or sale. You buy shares in a property that the platform either already owns or plans to buy. Later, you receive a share of the rental income in the form of a monthly dividend.
You can either invest manually in their listed properties or you can choose in one of their automatic investment profiles that are either focused on rental income or capital appreciation from sales.
Crowdestate is a real estate crowdfunding company from Estonia. You can either finance or get funding for a real estate development project.
Each investment has a clear exit condition. It’s usually a specific date in the future, but it sometimes might also contain conditions like “a 30% increase in value” as exit conditions. All real estate development projects offered on the platform are ended with the sale of the property.
Crowdestor is a real estate crowdfunding platform based in Latvia. It offers investors the opportunity to invest in real estate, energy, transport and startup projects from as little as 100 EUR. The investment annual return rates are around 15%.
Grupeer is a p2p lending / real estate crowd investing platform from Latvia that lets you invest in real estate development loans. All investments have a buyback guarantee and the interest rates are around 14%.
EstateGuru is not really a real estate crowdfunding platform. Instead, it offers loans that are backed by real estate properties. The default rate of the loans is less than 1% and the historical return for investors is at around 12%.