Real Estate

Best Real Estate Crowdfunding Sites in Europe for 2020

Investing in European real estate online is easier than ever before. But what are the best platforms? Read our updated ranking for 2020 and find out.
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Finding the best real estate crowdfunding site in Europe for your investment needs can be a daunting task. With so many peer-to-peer lending platforms for property investing claiming to be the best, it can be difficult to find the right company to trust with your hard-earned money.

Our goal is to help match you with the best real estate crowdfunding platforms in continental Europe and in the UK. To do that, we tested and compared several sites for commercial and residential properties.

We looked at the top property crowdfunding platforms for equity based investing with rental income and fixed interest loans to developers, and then selected the best broker from each of these categories.

However, we’ve only included sites that welcome investors from all across Europe.

If you’re looking for the best peer-to-peer lending platforms in Europe, check out our list of the best sites for this year.

Without further delay, let’s delve into this year’s ranking of the best real estate crowdfunding platforms in Europe.

These are the best real estate crowdfunding platforms in Europe

RankPlatformROIRegulationBonus
#1EstateGuru12%FCA (UK), LB (LT)0.5%
#2CrowdProperty8%FCA (UK)
#3Crowdestate17%
#4Raizers12%AMF, FSMA
#5Bulkestate18%€5
#6Property Partner11%FCA (UK)
#7Blend Network12%FCA (UK)
#8Rendity7%IHK (DE), BMWFJ (AT)€25
#9Kuflink7%FCA (UK)Up to £4,000
#10Nordstreet11%LB (LT)

Our ranking of the best real estate crowdfunding platforms in Europe:

  1. EstateGuru: Our top choice for 2020. 12% per year. Most popular platform in Europe. Zero capital loss. Zero fees. Massive deal flow. Low minimum investment. 1,300 loans funded.
  2. CrowdProperty: UK’s largest property crowdfunding site for residential properties. £156m funded. 909 homes built. 100% payback and great track record. FCA regulated and authorised.
  3. CrowdEstate: 17% per year. Immensely popular. High loan volumes and wide range of investment opportunities. €90m raised. 230 loans funded.
  4. Raizers: Best for French and Swiss real estate. Regulated by multiple top-tier authorities, Raizers offers an active deal flow of property-secured loans.
  5. BulkEstate: 18% per year. Great for high-end quality projects. Picky due diligence and vetting. Offers group buying of flats below market prices.
  6. Property Partner: 11% per year. High-yielding UK asset platform offering monthly dividend yield (rental income) and potential capital gains. FCA regulated. £145m assets under management.
  7. Blend Network: Up to 12%. Young, fast-growing player from the UK run by professionals with substantial experience in real estate and finance. Zero fees and FCA regulated. Offers lenders access to great loans in niche markets.
  8. Rendity: 7% per year. Best platform for investing in Austrian and German real estate along with institutional investors. Offers five-star development deals and steady flow of rental income. Authorised financial investment broker and regulated by the German Chamber of Industry and Commerce.
  9. Kuflink: Real estate lending secured against UK property. Up to 7.2% interest per annum. FCA regulated. Great Trustpilot rating. No capital loss.
  10. NordStreet: 11.5% returns. High-quality residential and commercial property with rock-bottom LTVs. Regulated and licensed by the national bank of Lithuania.

1. EstateGuru

#1 Best real estate crowdfunding site in Europe

Estateguru - A leading real estate crowdfunding platform in Europe

Best for: Overall

Founded in 2013, EstateGuru earns our top spot as the best real estate crowdfunding platform in Europe by offering clients a complete package of property investing tools coupled with high levels of security for your money.

As the leading real estate crowdfunding platform in Europe, EstateGuru boasts a user base of over 55,000+ members and more than 1,500+ funded loans. Since inception, the company has continued to perform above expectations with zero capital loss of client funds and above-industry-average interest rates while maintaining an unmatched deal throughput.

Special offer: 0.5% bonus on all investments for the first 3 months.

EstateGuru offers around 12% interest on secured property loans, with a minimum investment amount of only €50 and zero-to-low fees charged for its services. As such, the platform has proven an excellent source of stable income to investors from short-term loans, while giving the borrowers funds to grow and expand.

Estateguru features

Interest rate12%
Minimum investment€50
Auto-investYes
Security1st & 2nd-rank mortgage
Projects inEstonia, Latvia, Lithuania, Spain, Finland, Germany
RequirementBank account in the EEA or Switzerland
Deposit methodsBank transfer
Capital loss0%
FeesNone, low
Operational since2013
RegulationFCA (UK), LB (Lithuania)

EstateGuru has expanded its operations into Western Europe during the last past years and now offers investment deals from multiple European countries. As a result, there is growing amount of loans available at all times, making it easy for investors to diversify their portfolios and reduce their geographical concentration risks in the process.

on Estateguru’s secure website

Moreover, EstateGuru offers deep transparency in each business transaction they finance, detailed statistics regarding its loan book, and insights into its internal business operations. In terms of user experience, the platform has an easy-to-use interface with detailed information on available loans, including a host of great features like auto-invest, two-step authentication, and a secondary market for reselling loans to other users.

2. CrowdProperty

#2 Best real estate crowdfunding site in Europe

Crowdproperty - Best UK property crowdfunding platform

Best for: UK real estate & safety

Established in 2015 and headquartered in Birmingham, CrowdProperty is the leading platform for investing in real estate in the UK, specializing in low-risk property development lending. In 80 transactions, they have lent £155 million to over 50 different borrowers, enabling the build of over 900 homes.

CrowdProperty is our number one choice for low-risk investing, as the platform exclusively offers first-charge loans only to experienced developers who already have planning approval. As a result, they are one of the few property crowdfunding platforms that have achieved 100% capital and interest payback and 0% loss of investors’ funds.

Special offer: Join over 10,000 investors, FCA-regulated, 100% historical payback

on CrowdProperty’s secure website

CrowdProperty is regulated by the FCA in the UK, one of Europe’s top-tier financial authorities. The company is led by a team of seasoned real estate experts who performs rigorous due diligence on all property objects to secure investors’ funds.

CrowdProperty features

Interest rate8%
Minimum investment£500
Auto-investYes
Security1st-rank mortgage
Projects inUK
RequirementBank account in the UK (see free options)
Deposit methodsBank transfer
Capital loss0%
FeesLow
Operational since2014
RegulationFCA (UK)

Besides the UK, CrowdProperty is accessible to European citizens with a UK bank account like Revolut or TransferWise. However, only UK citizens can qualify for tax exemptions on gains through the IFISA or SIPP products.

CrowdProperty offers up to 8% return on investment, which is higher than the average first charge secured loan. Investments are usually short term, from 6 to 24 months duration, with the capital as well as interest paid back at the end of the term. The platform doesn’t offer a secondary market, so you’ll have to wait till the expiration of the loan tenor to get your money back.

3. Crowdestate

#3 Best real estate crowdfunding site in Europe

Crowdestate - P2P property platform review

Best for: Higher yields

Established in 2015, Crowdestate is a leading European real estate investment platform with projects in Italy, Romania, Estonia, Latvia, and Finland. Since its founding, the platform has attracted around 50,000 investors and raised close to €100m funds for over 250 projects.

Crowdestate brings secured deals for developments like residential, healthcare, retail, and office buildings into its platform. Although the bulk of the investment opportunities on Crowdestate are in real estate, you can also put your money in corporate finance or mortgage loans.

Special offer: Join 50,000 investors, 17% historical returns, property-secured loans

on Crowdestate’s secure website

The Crowdestate site gives you useful and accurate information about the property market. In-house real estate expert analysis each project weighing the risks, expected yield, and timeline. This helps you to figure out the best projects to put your money according to your risk appetite.

Crowdestate features

Interest rate16%
Minimum investment€100
Auto-investYes
Security1st & 2nd second rank mortgage
Projects inMultiple countries
RequirementBank account in the EEA
Deposit methodsBank transfer
Capital loss0%
FeesLow
Operational since2014

You can expect to earn from 10 to 19% on your investment. You can start on Crowdestate with as little as EUR100 and maintain a stable growth rate over time. The platform features an auto-invest function that can propose a bespoke program for you for a secure and profitable investment portfolio. You can also exit early using the secondary market feature, which allows you to sell your investments without paying any fee.

Any adult and corporate entity, from most countries, can invest in Crowdestate. US residents are restricted from the platform due to tight regulations. You can find out if your country is eligible on their website.

4. Raizers

#4 Best real estate crowdfunding site in Europe

Best Real Estate Crowdfunding Sites in Europe for 2020 1

Best for: French and Swiss real estate

Raizers is our number one recommendation for investors that want to invest in French Swiss, and Benelux real estate on a finely regulated platform. Raizers was launched in 2014 and is today licensed by tier-one authorities in France and Belgium, including the French Financial Markets Authority (AMF) and the Belgian Financial Markets Authority (FSMA).

Seeing that France’s urban housing prices rose by 3% in 2019, and Paris alone showed a massive upswing of 6.5%, this could be a great time to dip your toes in the French property market.

Special offer: Up to 10% annual returns and easy access to French & Swiss real estate through a tier-one licensed platform with 100% payback track record

on Raizers website

Offering 10% returns from medium-sized secured property loans, extensive documentation, and direct access to borrowers, Raizers has done an excellent job making Western European real estate more accessible to everyday investors. Raizers charges no fees and accepts international investors regardless of their nationality (with few exceptions).

Raizers review & features

Interest rate10%
Minimum investment€1000
Auto-investNo
Security1st-rank mortgage
Projects inFrance, Switzerland, Benelux countries
RequirementBank account in the UK (see free options)
Deposit methodsBank transfer
Capital loss0%
FeesNone
Operational since2014
RegulationAMF (France), FSMA (Belgium)

Apart from real estate development loans, Raizers also facilities loans for buy-to-let properties, green crowdfunding projects for financing renewable energy production, and offers mortgage-backed loans from small and medium-sized businesses.

All in all, with a solid combination of regulatory licenses, years in business, experienced management team, secured property deals, and access to Western European real estate, Raizers provides a great all-around investment experience.

5. BulkEstate

#5 Best real estate crowdfunding site in Europe

Best Real Estate Crowdfunding Sites in Europe for 2020 3

Best for: High-quality projects

Thanks to its unique focus and local anchoring in Riga, Latvia, Bulkestate has created an excellent all-around platform for investing in the Baltic real estate market. Key highlights include low minimum investment of €50, industry-leading returns, attractive loan-to-value ratings, and segregated escrow accounts for investors’ funds. Finally, most projects have a quick turn-around time of only 12 months and are secured by way of a legal charge over the borrower’s assets.

on Bulkestate’s website

Special offer: Up to 1% cashback for investments above €5,000, 14% annual returns, high-quality projects, great loan-to-value evaluations

Bulkestate features

Interest rate15%
Minimum investment€50
Auto-investYes
Security1st & 2nd second rank mortgage
Projects inBaltic states
RequirementBank account in the EEA
Deposit methodsBank transfer
Capital loss0%
FeesNone
Operational since2016

Besides in-house experts, Bulkestate partners with local real estate professionals to handle all property-related issues. Better yet, Bulkestate charges no fees to investors, and large accounts can enjoy up to 1% bonus on their investments.

6. Property Partner (UK)

#6 Best real estate crowdfunding site in Europe

Property Partner - UK real estate investment service

Best for: UK rental properties

Started in 2015, Property Partner is one of the pioneers of property crowdfunding in the UK. While initially launched to serve everyday investors, the platform now focuses on attracting high-net-worth individuals through its Premium Services program. The company is headed by Robert Weaver, who previously managed a £500m investment fund and is member of the British Property Federation.

Open to international investors, Property Partners offers a gateway to the booming UK real estate market. Investors can select between equity products or development loans, the former paying rental income as monthly dividend, while the latter returns your initial deposit plus interest at the end of the loan term.

Key highlights: Long track record, open to European investors, invest in UK real estate from abroad

Property Partner features

Interest rateUp to 12%
Minimum investment€50
Auto-investYes
SecurityMortgage
Projects inUK
Who can investInternational investors, except US persons
Deposit methodsBank transfer
Capital loss0%
FeesMedium
Operational since2015
RegulationFCA (UK)

Besides rental income from tenants, investors have the chance to benefit from capital gains as the property value may appreciate over time. Most importantly, Property Partner offers flexibility, as you can resell your stake to other investors on the platform.

7. Blend Network

#7 Best real estate crowdfunding site in Europe

BLEND network review

Blend Network is a UK-based peer-to-peer real estate investing marketplace that connects lenders directly with borrowers. Managed by a small team of former investment bankers, the company focuses on properties in locations and segments that are underserved by the UK banks. These geographical areas include Northern Ireland and certain parts of Scotland and England.

These loans are usually for property development and building renovations. All loans a secured with the first charge on real estate, and they have a sensibly low loan to value rates.  

Because of the focus on identifying niche lending opportunities, the returns are fairly high, ranging from 8 to 15%. However, their loans are few and sell out rather quickly. And just about 2 to 3 loans are available on Blend in any given month.

  • Type of Investment: Loan
  • ROI: 8 – 15% pa 
  • Security: Asset
  • Secondary Market: Yes
  • Auto-invest Function: Yes
  • Minimum Investment Amount: GBP1,000
  • Currency of Investment: GBP
  • Platform Founding Year: 2016
  • Country of Operation: UK

While anyone above 18 with a UK bank account can invest in Blend, the minimum investment of £1,000 per loan ensures that their investor base comprises of high net worth and professional investors.

The Blend website provides comprehensive information about each project, including independent property collateral valuation reports. They have had a good lending track record so far with no history of defaults nor arrears.

8. Rendity

#8 Best real estate crowdfunding site in Europe

Rendity Real Estate Crowdfunding Platform in Austria

Rendity is a real estate crowdfunding platform based in Vienna, Austria that allows investors access into quality real estate projects in Austria & Germany. They offer two classes of deal on the platform – development projects (known as Rendity growth) and the conventional buy-to-rent opportunities (called Rendity Income).

The returns can be as high as 7%, but on average, investors can get about 6.1%. Rendity income is low risk with the return on investment in the range of 3%-5% while Rendity Growth offers a higher return – 4% to 7%, but higher risk. You’ll get an incentive of EUR25 once you register on the platform.

With Rendity, you can invest in properties with a relatively small capital, track your investments, track the returns, and monitor your real estate projects. The platform is straightforward to use, and you’ll get excellent customer support.

  • Type of Investment: Real estate
  • ROI: up to 7% per annum
  • Security: Asset
  • Secondary Market: Yes
  • Auto-invest Function: No
  • Minimum Investment Amount: EUR1,000 for each property
  • Currency of Investment: Euro
  • Platform Founding Year: 2015
  • Country of Operation: Austria, Germany

Anyone who is 18 and above can invest on Rendity so long as you have a European bank account. Companies, too can invest on the platform if they have a bank account. The minimum investment amount is EUR1,000.

Rendity will pay you instant interest whenever you invest in a new project that is still being funded. This cool feature ensures your money won’t be idle while waiting for the project to meet its funding goals.

9. Kuflink

#9 Best real estate crowdfunding site in Europe

Kuflink property platform

Kuflink is a peer-to-peer real estate lending company based in the UK that offers investment opportunities in short-term bridging loans and real estate. The obligors’ property secures loans on this platform in the event of default.

You can invest in a variety of ways on Kuflink: Select-invest, Auto-Invest, and IFISA. These accounts offer varying rates of returns up to 7.2%. They also provide different tenors – 3 to 12-month loan terms for manual invest and 12 to 60 months term for Auto-Invest.

Special offer: Up to 4% (£4,000) cashback on your investments on Kuflink when investing £1,000 or more.

Kuflink invests its own money- up to 50% in some cases, alongside investors on projects. This ensures they have skin in the game, thereby providing additional comfort to investors.

  • Type of Investment: Loan
  • ROI: 7.2% pa 
  • Security: Asset
  • Secondary Market: Yes
  • Auto-invest Function: Yes
  • Minimum Investment Amount: GBP100
  • Currency of Investment: GBP
  • Platform Founding Year: 2016
  • Country of Operation: UK

Kuflink is a family business run by a team that has many years of financial and real estate experiences behind them. Their rate of loan default is below 7%, which is encouraging.

Anyone above 18 and with a UK account can invest on Kuflink, starting with a minimum balance of GBP100. The account opening process is straightforward, and the platform is easy to use. Kuflink gives you full control of your investments. You can sell your stake on the secondary market if you want to opt-out earlier.

10. NordStreet

#10 Best real estate crowdfunding site in Europe

Nordstreet Review

Nordstreet (read full review) is a real estate online crowdfunding platform based in Lithuania that specializes in lending to property developers. Developers use these loans to build apartment blocks, office blocks, shopping complexes, or any other commercial building. To raise funds for these loans, Nordstreet operates a P2P model – accepting cash investments from its members and aggregating them and channeling them directly to the project developer.

For the investors, these real estate investments can be lucrative, offering up to 11.35% returns on average, which is excellent for investing in small real estate with a minimum investment of EUR100. The investments are secured by the properties being funded. Projects are categorized by risk classes.

  • Type of Investment: Real Estate
  • ROI: Up to 12%
  • Security: Asset
  • Secondary Market: No
  • Auto-invest Function: No
  • Minimum Investment Amount: EUR100
  • Currency of Investment: Euro
  • Platform Founding Year: 2018
  • Country of Operation: Lithuania

Project duration may be up to 36 months. And investors get a fixed monthly interest proportional to their investment, and their principal returned at the end of the project. Interest starts counting from the day the developer has received full funding for the project.

Investors from all over the world can invest on Nordstreet. This makes it possible for non-EU residents to access the European property market. However, you must verify your identity before you can invest.

Nordstreet does not offer a secondary market, which means you can’t exit your investment prematurely. As such, investments in NordStreet are not liquid, and you should only invest money that you won’t need for the period.

More real estate investments in Europe to consider

Outside our top 10 real estate crowdfunding platforms in Europe for 2020, there are several other sites you can look into.

11. LandLordInvest (UK)

LandlordInvest is a direct peer-to-peer lending platform in the UK that provides opportunities for real estate investing. Founded in 2014, the platform secures every loan with the investment property, which mitigates the risk for investors, and as such, they’ve had an excellent track record thus far. With as little as £100, investors can fund commercial and residential property loans on LandlordInvest real estate crowdfunding platform. Borrowers are rigorously selected based on their past performance.

  • Type of Investment: Real Estate
  • ROI: Up to 12%
  • Security: Asset
  • Secondary Market: Yes
  • Auto-invest Function: No
  • Minimum Investment Amount: GBP 100
  • Currency of Investment: GBP
  • Platform Founding Year: 2014
  • Country of Operation: UK

LandlordInvest offers one of the highest returns on investment for crowdfunding platforms in the UK and Europe. You can earn up to 12% on your investments. The LandlordInvest platform is replete with information on the various real estate investments on offer on the platform. Interest rate, the amount available for investing, risk rating, and loan-to-value (LTV) are available at a glance. You can also access other information like the collateral details and valuation reports.

You can sell your loan share via the secondary market feature. The platform doesn’t have an auto-invest feature, which is understandable since it favors quality over quantity. Also, manual investing allows more time to carry out due diligence.

12. EvoEstate

EVOEstate is one of the newest entrants in the P2P Real Estate Investing market. Based in Estonia, the platform was launched in February 2019 by experienced P2P property investment experts. Since then, the crowdfunding platform has extended its reach beyond the Baltics with plenty of deals from several countries. Therefore, investors have a diverse pool of investments to choose from. These include buy-to-let, development loans, buy-to-flip, equity projects among others

  • Interest rate: up to 18% per annum
  • Security: Mortgage
  • Secondary Market: Yes
  • Auto-invest Function: Yes
  • Minimum Investment Amount: EUR50
  • Currency of Investment: Euro
  • Platform Founding Year: 2019
  • Country of Operation: Germany, UK, Spain, Estonia, Netherlands, Ireland, Italy, Lithuania, and Austria
  • Who can invest: investors from all over the world
  • Withholds tax: No

The EVOEstate website is intuitive to use and offers lots of real estate investing opportunities for investors. With deals that have been thoroughly screened before being uploaded to the platform. EvoEstate is unique among the real estate P2P crowdfunding crowd in the sense that they are more of an aggregator for crowdfunding real estate deals. Investors on their platform can have access to more than 15 real estate investing platforms without the stress of having to sign up for each one.

Additionally, they claim an extra layer of due diligence on curated deals. Projects listed are backed by the company’s trust so much so that they invest their capital in each one of them. This greatly boosts investor’s confidence.

13. The House Crowd

The House Crowd (THC) is an online crowdfunding website – one of the earliest out of the UK – that provides property investment opportunities to the masses. The platform pools money together from a group of people (investors) and invests these funds in commercial and residential properties. Investors through THC can own properties with a minimum investment of £1000. THC buys the houses outrightly with funds collected from the crowd of investors who then become part-owners of the property.

  • Interest rate: Up to 10% per annum
  • Security: Mortgage
  • Secondary Market: No
  • Auto-invest Function: Yes
  • Minimum Investment Amount: £1000
  • Currency of Investment: GBP
  • Platform Founding Year: 2011
  • Country of Operation: UK
  • Who can invest: investors from all over the world except US residents
  • Withholds tax: No

The house crowd runs two basic investment models- the Joint-venture profit share model (Equity based model) and the fixed income model. In the Joint-venture profit share model, you own a share in the property. You’ll get a percentage of the rent and a share of the profits when the house is eventually sold. The fixed income model is very much like a loan. THC will pay you a fixed amount- currently at the rate of 7% pa – periodically throughout the term of the investment. Fluctuations in the property market won’t affect your profit, and your investment is secured with the property in question.

14. iFunded

iFunded is a leading online real-estate investment platform in Germany. The platform is primarily for those interested in investing in real estate with little money. Here, you can invest in residential and commercial real estate that has been vetted by real estate professionals. Thus, investors can make good returns while minimizing their risks. Financing on the platform is provided through subordinated loans.

  • Type of Investment: Real Estate
  • ROI: 5-10%
  • Security: Asset
  • Secondary Market: No
  • Auto-invest Function: No
  • Minimum Investment Amount: EUR 500
  • Currency of Investment: Euro
  • Platform Founding Year: 2012
  • Country of Operation: Germany

Investors all over Europe can invest with iFunded. The platform is easy to use and well rendered in English and Germany. All necessary information about current projects are listed on the site to help you form a decision. The rate of returns on iFunded ranges for 5% to 10%, which is higher than most other traditional forms of investment. As a private investor, your minimum investment on iFunded is EUR500, and the maximum is EUR10,000. Commercial investors can invest more, of course.

The investments on iFunded are typically short term with most of them running for 12 months. Interest may be paid monthly or at the end of the project, depending on the nature of the project. To minimize risks, and with the low barrier to entry, you should invest in multiple real estate loans.  

15. Profitus

Profitus is a relatively new real estate crowdfunding platform from Lithuania. Founded in 2017, the platform mainly connects developers who seek funds for their real estate development projects and investors who seek to make their money work for them.

As an investor, this platform allows you into the real estate market with as little as EUR100.  This minimum amount, however, varies depending on the project. The firm is under regulation from the bank of Lithuania.

An investment over EUR50,000 earns you a position as a Profitus nominal investor. You can then receive more and have your voice heard at the investors’ meeting.

  • Interest rate: 9 to 13% per annum
  • Security: Mortgage
  • Secondary Market: Yes
  • Auto-invest Function: Yes
  • Minimum Investment Amount: Euros100
  • Currency of Investment: Euro
  • Platform Founding Year: 2017
  • Country of Operation: Lithuania
  • Who can invest: investors from all over the world
  • Withholds tax: Yes

You can earn from 9 to 13% investing on Profitus. The gains are a function of your risk appetite with projects rated in order of ascending risk from A to D.

Any adult from any part of the world can invest with Profitus subject to proper identification. Substantial investments may require the investor to justify the source of income.

16. CapitalRise

CapitalRise is a UK-based online real estate investment platform that sets out to democratize real estate investing. Anyone can access real estate opportunities, which were previously the exclusive preserve of corporations or wealthy individuals.

The platform’s founding team has rich experience in financial technology, real estate, and risk management, which they leverage to identify lucrative investment opportunities in industrial, commercial, hospitality, and residential properties.

Additionally, CapitalRise invests their own money together with other investors. This gives considerable comfort to investors as it shows they have confidence in their investment selections.

  • Type of Investment: Real Estate
  • Interest rate: 8 -12% per annum
  • Security: Mortgage
  • Secondary Market: No
  • Auto-invest Function: No
  • Minimum Investment Amount: GBP1,000
  • Currency of Investment: GBP
  • Platform Founding Year: 2016
  • Country of Operation: UK
  • Who can invest: European bank account holders and EU-based companies. Selected non-European countries
  • Withholds tax: No

The platform splits investors into 4 classes: Restricted Investor, Sophisticated Investor, high Net worth Investor, and Corporate/Professional Investors. The rate of returns ranges from 8 to 12% pa, and this can be tax-free up to £20,000 if you use your IFISA allowance. The minimum investment on CapitalRise is GBP1000

CapitalRise primarily invests in property loans to fund development projects in prime areas in London and some home counties. Some of these include Eaton Square, the Strand, Grosvenor Square, among others. There are two types of investments – senior loans that are low risk and have first legal charge and the mezzanine loans, which are higher risks and subordinated under a senior lender.

Although CapitalRise accepts international investors, not all countries’ citizen are allowed as eligible investors.

18. Tessin: Best Nordic Property Investment Platform

Tessin is an online real estate platform from Sweden that allows you either invest in development projects or buy shares in rental properties. Launched in 2014, the platform accepts investors from all parts of the world.

They have a decent number of current projects. However, their projects are limited to the Swedish real estate market, which has proven over time to be stable with predictable returns.

  • Interest rate: 7 to 12% per annum
  • Security: Mortgage
  • Secondary Market: No
  • Auto-invest Function: Yes
  • Minimum Investment Amount: SEK20,000~EUR2,000
  • Currency of Investment: SEK
  • Platform Founding Year: 2014
  • Country of Operation: Sweden 
  • Who can invest: investors from all over the world
  • Withholds tax: No

You can get started investing on the platform with a minimum of SEK20.000 (about EUR2,000), which is somewhat high. The return on investment typically range from 7 to 12%

The website has an English version, unlike other Scandinavian property crowdfunding sites.

17. Walliance

Walliance in one of the first real estate crowdfunding platforms in Italy. They provide investment opportunities in real estate to the general public, which otherwise would not have been accessible to most. At the same time, they offer developers an alternative way of raising capital transparently.

Investments in each real estate project start from EUR500. And to get started, you must upload the required documentation and complete a risk analysis questionnaire. Upon approval, you can start investing right away to enjoy the high return – up to 15% offered on the platform.

  • Type of Investment: Real Estate
  • ROI: Up to 15%
  • Security: Equity
  • Secondary Market: No
  • Auto-invest Function: No
  • Minimum Investment Amount: EUR500
  • Currency of Investment: Euro
  • Platform Founding Year: 2017
  • Country of Operation: Italy

Walliance partners with Ernst & Young to evaluate the feasibility of real estate deals before listing them on the platform. The Walliance website is intuitive and has detailed information on ongoing projects to assist you in making decisions. You are provided with a comprehensive guide to answer any questions you may have. You can also request more information from the property developers.

Investors get paid by either distributed profit at the end of the deal or periodic returns with the balance paid after the transaction.

Walliance is regulated by CONSOB and has projects all over Italy- Trentino, Lombardy, Tuscany, Veneto. Recently, they’ve started seeking for investments abroad with a few deals in the United States

18. BrickStarter

Brickstarter is a real estate crowd investment platform based in Spain that specializes in investment opportunities in holiday rental properties. In-house experts select properties after a thorough profitability study using data from sources like HomeAway, Airbnb, and Booking.com.

They have properties all over Spain, which is one of the most visited countries in the EU. This ensures the return on investment on the platform is substantial.

Brickstarter buys tourist rental properties, makes them over and put them up for sale at a higher value – basically flipping. But before the actual sale, the platform rents out the property and collects rentals.

  • Type of Investment: Real Estate
  • ROI: 9%
  • Security: Asset
  • Secondary Market: Yes
  • Auto-invest Function: No
  • Minimum Investment Amount: EUR50
  • Currency of Investment: Euro
  • Platform Founding Year: 2017
  • Country of Operation: Spain

Investors start earning immediately they invest in a property. They’ll earn 5% interest while the property is still in the funding stage. When the property renovation has been completed and the property rented out, investors will receive a monthly rental dividend accordingly. Investors earn again when the vacation property is finally sold, and the capital gains distributed to investors in proportion to their investments.

Even the most casual investors can invest with BrickStarter with minimum investment starting as EUR50. The platform is open to only EU residents and Spanish Companies. Annual returns average about 9%.

Final remarks

There you have it: the best property crowdfunding sites in Europe. If you’ve ever wanted to invest in real estate from the comfort of your own computer, you’ll find amongst them, one or two that meets your risk acceptance criteria.

Investing in any of the platforms profiled in this list best real estate crowdfunding sites in Europe makes it possible for you to earn big with little money potentially.

However, don’t forget that real estate investment, just like any other investment, is innately risky. More so, real estate crowdfunding and peer to peer real estate lending are all relatively new, so you must proceed with caution.

Real estate investing: Fundamentals

According to Ernst & Young, the European market for real estate crowdfunding saw an incredible growth rate of 90% last year. A similar report concluded that property prices in the EU went up 5% in the last three years, due to the increasing demand for housing.

Most interestingly, many of the world’s millionaires made their fortune by investing in real estate. While prices might go up and down, holding real estate in one of the world’s capitals remains a pillar of security to building long-term wealth.

However, the opportunities of investing in the European property market aren’t just for billionaire investors alone. Small-time investors now have access in the European property market on equal footing although they don’t have the same amount of capital to flex. Thanks to technology, crowdfunding real estate investment have drastically lowered the barrier to entry into real estate.

You can get a slice of the lucrative real estate deals through the increasingly popular crowdfunding model. This is the time to learn about the best property crowdfunding sites in Europe.

If you’ve always dreamed of becoming a landlord, but either lacked the time, money, or knowledge to get started, you’ll find a solution to these hurdles with real estate crowdfunding. This new model of co-financing breaks the barriers to investing and gives anyone a chance to take part in high-yielding projects that are shooting up across the continent. It requires very little money to get involved, and you’ll be participating side-by-side with thousands of other small investors or big financial institutions.

But before you put down cash on this relatively new investment vehicle, you should learn how crowdfunding real estate works.

Real estate crowdfunding 101

Crowdfunding, a way of pooling funds together for a common cause, has recently found application in real estate investing. Real estate crowdfunding is a system of raising capital by assembling a large pool of investors who each contribute a relatively small amount of money for real estate investments.

This way, the pool of investors can put their money in a diverse range of properties without the associated headaches of dealing with mortgage brokers, contractors, or real estate agents.

Traditionally, investment in property was only for select professionals and involved tons of paperwork, cryptic legislation, and plenty of money. Now, crowdfunding platforms will handle all these for you.

The Five Different Types of Property Financing

Investing in the property market requires substantial capital. Real estate crowdfunding is a relatively new and alternative way to raise money for investments in the property market. Traditionally, investors in real estate often seek funding from financial institutions like banks. These loans may be sought to enable the investor to take their first steps or to help them expand their portfolios.

Here are the five major real estate loan types available on real estate crowdfunding sites:

Bridge Loans

A bridge loan is a short-term, high-interest loan that enables a property developer to meet current financial obligations until a permanent financing solution has been put in place. A bridge loan enables a property owner to buy another property pending the sale of their existing property. The existing property acts as collateral in this case. This loan is usually more expensive than a home equity loan but makes buying another property much easier. A bridge loan can be obtained for residential as well as commercial properties.

Property Development Loans

Property development loans are for funding larger new building projects or total renovations. This could include new housing projects office converted to blocks of apartment buildings, luxury homes, and more. Developers can use property development finance for residential and commercial buildings alike.

Buy to Let

A buy-to-let loan or mortgage is for investors who buy property for rent as an investment. Properties for rent cannot be financed with a regular residential mortgage. And unlike most residential mortgages, buy-to-let loans are available on an interest-only basis. You’ll only pay interest monthly, leaving the principal untouched. You’ll pay this principal amount in full at the end of the loan tenor.

Buy to Sell (Property Flipping)

A buy to sell mortgage is used to purchase property to sell. This loan type is popular with investors who intend to make money flipping properties since traditional mortgages won’t cut it. This is because lenders will charge an early redemption fee and may not allow you to sell within 6 months of purchasing the property.

Residential Mortgage 

A residential mortgage is a long-term loan, usually substantial, taken out by one or more individuals to buy a home to live in. The house thus purchased must be used as a place of residence by the borrowers. It’s not meant to be rented or used for other commercial purposes.

Is real estate crowdfunding in Europe a good investment?

Real Estate Crowdfunding investment can be a source of steady cash flow and typically delivers a high return on investment – up to 14% in some cases. This is higher than investments in stocks, which are more volatile. Property investment, especially residential, are usually stable and trend up in the long run. Housing is one basic human need, and the demand is always on the rise.

An even better reason to invest in real estate crowdfunding is the ease of access. Everyday investors can have access to commercial and residential projects that were available to only wealthy accredited investors. Some platforms offer pre-vetted deals with a minimum investment amount as low as €50.

And you don’t have to muddle through extensive paperwork. You simply log in to the website, research, and place your investments, all from the comfort of your home. This low minimum investment also makes it possible for you to properly diversify your investment across property types and locations thereby hedging your risks.

How safe is it to invest in real estate online?

Like every other form of investment, investing in real estate online, through peer-to-peer models or crowdfunding platforms, comes with some level of risks. However, the best property crowdfunding sites in Europe put measures in place to mitigate these risks.

If your investment takes the form of equity, an SPV is created specifically for each project with the SPV holding a charge over the property. This ensures that your investments are safe even if the crowdfunding platform goes belly-up.

Debt investments are considered even safer. Actual physical properties directly secure your investment. Crowdfunding real estate platforms deals are typically secured against a first or second rank mortgage.

Having a first rank mortgage on a property is the highest level of security possible to safeguard investors. This means that if a borrower defaults in repaying its loan, the crowdfunding platform can and will take ownership of the property having the same level of security as a mortgage company.

Investors will have the first right to the proceeds when the property peer-to-peer company sells the repossessed property to recover the debt.

Secondary rank charge holders will only be considered after settling those with first-rank charge.

FAQ

What is real estate crowdfunding?

Property crowdfunding is a way for property developers to raise capital for financing their projects. It leverages modern technology to pool funds from multiple individuals and companies. Investors, on the other hand, have the opportunity to invest in multiple, unrelated projects for small amounts of money, without having to bother with the loads of paperwork and responsibility usually associated with this kind of security.

Why is property crowdfunding so popular?

Most of the world’s millionaires made their fortune by investing in real estate. While prices might go up and down, holding real estate in one of Europe’s capitals remains a pillar of security to building long-term wealth. Thanks to technology, crowdfunding real estate investment have drastically lowered the barrier to entry into real estate.

If you’ve always dreamed of becoming a landlord, but either lacked the time, money, or knowledge to get started, you’ll find a solution to these hurdles with real estate crowdfunding. This new model of co-financing breaks the barriers to investing and gives anyone a chance to take part in high-yielding projects that are shooting up across the continent. It requires very little money to get involved, and you’ll be participating side-by-side with thousands of other small investors or big financial institutions.

How does real estate crowdfunding work?

Real estate crowdfunding is a deal between a sponsor who sources, develops, and manages a real estate project and a group of investors who provides the funds.

Individual investors leverage the power of crowdfunding to partake in massive real estate projects that otherwise they couldn’t afford on their own.

The sponsor of the deal scouts the property, raises funds, buys, and manages the day-to-day operations while investors provide the bulk of the financial equity.

These syndication deals are usually set up as Limited Liability Companies or Limited Partnership with built-in protections for all parties.

The sponsor acts as the manager or general partner, with investors playing as limited partners or passive members.

Sponsors and investors share profits from either rental income and property sales, or both. The rental income can be distributed periodically as agreed.

With time, property values tend to increase, and so does rental income. And if the property is finally sold, investors can earn a hefty profit.

Is Real Estate a Safe Investment?

In general, most experts consider real estate a safe option for first-time investors, as the price Buildings and lands are tangible items and will always be worth something. In contrast to the volatile stock market, investors have historically speaking benefited from the price appreciation of their property holdings, even in turbulent times.

What are the risks?

All investments come with an element of risk, and real estate crowdfunding is no exception. Some of the risks include: (1) Lack of understanding: Make sure you understand the debt structure, diversification, tax implications etc. (2) High loan-to-value evaluations: Is the borrower able to pay back? (3) Unforeseen regulation that affects the market. (4) Platform risk: What happens if the company shuts down?

How is my investment secured?

Most platforms secure your investment by a first or second lien. This means, in case the borrower goes bankrupt or fails on repayments, his pledged assets would be handed over to the lender as repayment of his debt.

About the author: Lucas Peterson is an investor and expert finance writer with over 10 years of industry experience. Lucas has previously served as editor for a major financial news outlet in his European home country but now spends his time dealing with investments, managing his real estate portfolio, and learning about blockchain technology. To learn more about Lucas, visit his profile page.