Real Estate Crowdfunding

Best Real Estate Crowdfunding Sites in Europe For Investors [2020 Update]

Best real estate crowdfunding sites Europe

Disclaimer: Investing puts your capital at risk. Note that we might be compensated by some of the companies we mention. However, our opinions are our own.

Finding the best real estate crowdfunding site platform in Europe for your investment needs can be a daunting task.

With so many peer-to-peer platforms for real estate investing claiming to be the best, choosing the right company to trust with your hard-earned money has become an almost impossible job for many new lenders.

To help match you with the best real estate crowdfunding site in mainland Europe and the UK for commercial and residential properties, we analysed and compared several top investment sites.

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

Read our full review and comparison below, with pros and cons of each European real estate crowdfunding platform.

📢 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.

Contents show

These Are the Best Real Estate Crowdfunding Platforms in Europe

  1. EstateGuru: Our editor’s 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. BulkEstate: 18% per year. Great for high-end quality projects. Picky due diligence and vetting. Offers group buying of flats below market prices.
  5. Property Partner: 11% per year. High-yielding UK asset platform offering monthly dividend yield (rental income) and potential capital gains. FCA regulated. ÂŁ145m assets under management.
  6. AblRate: Up to 15% per year. Best rates in the UK for property investing. Great track record of completed projects. Easy-to-use platform with secondary market.
  7. Crowdestor: Up to 24% per year. Best rates in Europe. Diverse range of real estate and business deals with industry-leading returns.
  8. BrickStarter: Editor’s Special Mention. Best platform for investing in Spanish holiday rental properties. Unique concept with monthly rental income and equity. 🌟
  9. 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. FCA regulated. Offers lenders access to great loans in niche markets.
  10. NordStreet: 11.5% returns. High-quality residential and commercial property with rock-bottom LTVs. Regulated and licensed by the national bank of Lithuania.
  11. 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.
  12. LandlordInvest: Up to 12% on British bricks & mortar. Broad and diversified selection of loans. Zero capital loss. Focuses on smaller residential and commercial property-backed loans.
  13. EvoEstate. Up to 18%. Collects real estate deals from across Europe into one marketplace. Low minimum investment of €50.
  14. BrickOwner: Up to 17%. Novel UK platform focusing on residential development projects. Low account minimum of €100.
  15. Ifunded: 6% per year. First-rate German investment platform with high-quality, pre-vetted deals. Over 40 years of experience in the market. Fee-free property investing.

More Real Estate Crowdfunding Platforms to Consider

Outside of our top 15 real estate crowdfunding platforms in Europe for 2020, there are 11 other sites we looked into: Kuflink (UK), CrowdLords (UK), Profitus (Lithuania), The House Crowd (UK), Tessin (Sweden), British Pearl (UK), Housers (Spain), Capital Rise (UK), Walliance (Italy), Röntgen (Lithuania), Sourced Capital (UK).

  1. Kuflink: Real estate lending secured against UK property. Up to 7.2% interest per annum.
  2. CrowdLords: Hand-picked UK developments and rental property projects.
  3. Profitus: Flats and houses from the Baltic States. Solid 11% returns.
  4. The House Crowd: Automated UK real estate investments with balanced returns.
  5. Tessin: No. 1. Nordic platform. Great deal flow. Regulated by Sweden’s Financial Supervisory Authority.
  6. British Pearl: Hassle-free property-investing in the UK.
  7. Housers: Leading Spanish lender with over 100,000 registered users.
  8. Capital Rise: Property investment in London. Recommended for self-certified sophisticated investors and high net worth investors.
  9. Walliance: Leading Italian site for residential development projects.
  10. Röntgen: Short-term, high-yielding loans. Supervised by the National Bank of Lithuania.
  11. Sourced Capital: Small-scale UK lender with growing activity.

The State of Real Estate Crowdfunding in Europe

The opportunities of investing in the European property market aren’t just for billionaire investors alone. In fact, you can make money in the European property market even if you don’t have loads of cash.

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.

What is Real Estate Crowdfunding?

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.

Thanks to technology, crowdfunding real estate investment have drastically lowered the barrier to entry into real estate.

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 only thing you have to worry about is paying your part of the capital and enjoying the returns.

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

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.

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 some of the 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.

How Safe is Online Property Investing?

Like every other form of investment, investing in real estate online, through P2P or Crowdfunding platform 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.

Is Real Estate Crowdfunding 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.

Best Real Estate Crowdfunding Platforms in Europe

Now that we’ve learned the basics of property financing, it’s time we delved into this year’s ranking of the best real estate crowdfunding platforms in Europe:

1. EstateGuru: Best Overall

Estateguru - A leading real estate crowdfunding platform in Europe

Founded in 2013, EstateGuru earns our top spot by offering clients a complete package of property investing tools coupled with high levels of security.

As the leading real estate crowdfunding platform in Europe, EstateGuru boasts a user base of over 45,000 and more than 1,300 funded loans. It continues to perform above expectations with zero capital loss of client funds and above-average interest rates while maintaining an unmatched deal throughput.

As such, the platform provides an excellent source of stable income to investors from short-term loans, while giving the borrowers funds to grow and expand.

EstateGuru offers around 12% interest rates on secured property loans. And with a minimum investment amount of only €50 and zero fees charged, the company has joined in the rush to cut account minimums and commissions to rock-bottom.

They also have a lot of loans on their platform, which makes it easier to get all your money invested.

The loans on EstateGuru are mostly issued to borrowers from the Baltic stats. But a small percentage are also enjoyed by borrowers from other countries in Europe.

  • Interest rate: 10 to 12% per annum
  • Security: Mortgage
  • Secondary Market: Yes
  • Auto-invest Function: Yes
  • Minimum Investment Amount: Euro50
  • Currency of Investment: Euro
  • Platform Founding Year: 2013
  • Country of Operation: Estonia, Latvia, Lithuania, Spain, Finland, Germany 
  • Who can invest: European bank account holders and EU-based companies
  • Withholds tax: No

EstateGuru’s platform has an excellent, easy-to-use user interface with detailed information on available loans, which helps you to make an informed decision while choosing a loan.

It also offers a host of great features, which include auto-invest, and recently, secondary market. The platform secures all transactions with a 2-factor authentication.

EstateGuru has a sizeable amount of loans available, which makes it possible for investors to diversify their portfolios and reduce their risks. Also, they provide complete transparency in each business transaction they finance.

This boosts investors’ confidence while they earn considerable returns on their investments. The EstateGuru team also offers ongoing support for both borrowers and investors at every stage to make the process seamless.

CrowdProperty: UK’s Largest Property Crowdfunding Site

Crowdproperty review

Established in 2015, CrowdProperty is a UK P2P lending platform specialized in low-risk property development lending.

In 80 transactions, they have lent ÂŁ155 million to over 50 different borrowers, enabling the build of over 900 homes.

CrowdProperty 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.

CrowdProperty offers up to 8% return on investment, which is higher than the average first charge secured loan.

Though available for most European nationalities, UK citizens can qualify for tax exemptions on your gains if you invest through IFISA or SIPP products.

  • Interest rate: up to 8% per annum
  • Security: Mortgage
  • Secondary Market: No
  • Auto-invest Function: Yes
  • Minimum Investment Amount: GBP 500
  • Currency of Investment: GBP
  • Platform Founding Year: 2014
  • Country of Operation: UK
  • Who can invest: European bank account holders and EU-based companies.
  • Withholds tax: No

Investors anywhere in the EU and UK can put their money in projects available on CrowdProperty. However, you must have a UK Bank account, like Revolut or TransferWise.

The investments are short term, usually 6 to 24 months duration. You’ll get your capital as well as interest 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.

The platform is regulated by the FCA and applies rigorous due diligence to secure investors’ funds.

LandLordInvest (UK)

Landlordinvest Review

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 ÂŁ100, investors can fund commercial and residential property loans on LandlordInvest real estate crowdfunding platform. Borrowers are rigorously selected based on their past performance.

The landlords’ credit scores are not taking into cognizance, which makes it ideal for those that may not qualify for loans from traditional sources.

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. And with the available tax-free ISA wrapper for UK citizens, all the profit will be yours to keep.

  • 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

The LandlordInvest platform is replete with information on the various real estate investments on offer on the platform. You can, at a glance, see the interest rate, the amount available for investing, risk rating, and loan-to-value (LTV). 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.

BulkEstate

Bulkestate Property Review

Bulkestate is a crowdfunding and group buying platform that offers a simple, safe, and transparent way to invest in real estate online. Investing in real estate with little money has never been easier – Investors can start with as low as Euro50 on the Estonia-based crowdfunding platform.

Bulkestate operates all over Estonia under the regulation of the commercial legislation of Estonia and Europe. As an individual investor, the platform allows you to lend to developers and to jointly buy apartments, development projects, and rental properties at less than basic market prices. The typical loan to developers lasts about 12 months.

The platform employs real estate professionals to handle all property-related issues for you, from buying a building or apartment yourself to helping you earn passive income off your investments.

  • Type of Investment: Real estate
  • ROI: 15% annual returns
  • Security: Asset
  • Secondary Market: Yes
  • Auto-invest Function: Yes
  • Minimum Investment Amount: 50 Euro for each property
  • The currency of Investment: Euro
  • Platform Founding Year: 2016
  • Country of Operation: Estonia

Expect to earn an average annual return of about 14.86% on your investment on Bulkestate.

Your investment on Bulkestate is safe. A team of investment and real estate experts assesses every project on the platform. Only projects that they deem to have a future value that allows a safe exit for investors in the case of borrowers’ default are permitted. Again, each loan is secured by a mortgage which Bulkestate can execute if the loan defaults.

British Pearl (UK)

British Pearl UK Real Estate Crowdfunding Platform

British Pearl is a UK based online real estate investment platform. Investors earn primarily by purchasing shares of properties and become a part-owner or by investing in loans availed to develop a property.

The platform pre-funds all properties on offer, which mitigates project completion risks to investors. British Pearl allows individuals, legal entities, trusts, and even overseas investors to invest with them subject to passing regulatory checks. However, US citizens, permanent legal residents /”green card” holders, persons born in the US, and US dual nationals are exempt from investing on the platform.

  • Type of Investment: Real Estate
  • ROI: Varies
  • Security: Asset
  • Secondary Market: No
  • Auto-invest Function: No
  • Minimum Investment Amount: GBP 100
  • Currency of Investment: GBP
  • Platform Founding Year: 2017
  • Country of Operation: UK

Unlike other crowdfunding and P2P sites which enable collective funding of projects and match lenders to borrowers, the platform creates Special Purpose Vehicles (SPVs) where they place the funds and directly manage the projects under the highest regulatory standards imposed by the Financial Conduct Authority. This minimizes risks to investors while ensuring they get a good return on investment. Furthermore, investment properties are secured with a first charge mortgage.

British Pearl uniquely permits investment of equity and debt in the same property. And the returns on investment aren’t too shabby either. Investors can earn up to 9.50% per annum. Yields may vary widely depending on the property since each of them on the site has their particular loan return, and investors may invest in a combination of properties. The yield on each available property is indicated on their website.

Brickowner (UK)

Brickowner - High-interest UK property investment platform

Brickowner is a property crowdfunding platform based in the UK that enables ordinary investors to play in institutional-grade property markets with as little as ÂŁ100.  The bulk of their investments are in residential properties and could be either equity shares or bonds in the loan.

They make use of established UK property asset managers to assess and manage investment properties and development projects. The platform is easy to use and is open to UK and non-UK citizens except for US residents/citizens.

Returns on investment can be high, although it varies greatly depending on the property and market value.  You should expect about 8% on the average

  • Type of Investment: Real Estate
  • ROI: Varies
  • Security: Asset
  • Secondary Market: No
  • Auto-invest Function: No
  • Minimum Investment Amount: GBP 100
  • Currency of Investment: GBP
  • Platform Founding Year: 2017
  • Country of Operation: UK

Brickowner uses a Single Purpose Vehicle for each property it buys to protect investors. In the case that Brickowner goes bankrupt, your investment doesn’t go down with it since it’s in the actual physical property and not tied to the platform or other properties. Even if Brickowner decided to go bankrupt after raising funds and not yet bought a property, your money would still be intact since it doesn’t go straight to Brickowner’s account but rather into a solicitor’ ring-fenced’ account. You’ll be refunded straight away if the platform goes bust.

Rendity: Best in Germany & Austria

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.

iFunded

Ifunded property investment platform review

iFunded is the 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.

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.

  • 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

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.  

Kuflink

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.

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.

Blend Network

BLEND network review

Blend Network is a UK-based P2P 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, their return on investment is attractive 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, their relatively high minimum investment of ÂŁ1,000 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.

Property Partner (UK)

Property Partner - UK real estate investment service

Property Partner is one of the pioneers of real estate crowdfunding in the UK, and possibly the biggest. They mostly take on residential student hostels and commercial projects with potential for high returns.

When you invest with Property Partner, you earn in 2 ways – the rentals from the properties and capital gains as the property value appreciates. The platform also offers some flexibility. You can sell your stake to other investors outside the platform at any time or resell it to the platform at the current market price after 5 years.

Property Partner has properties all over the UK, which makes it easier for you to diversify your investment portfolio on the platform.

  • Type of Investment: Real Estate
  • ROI: Up to 3%
  • Security: Asset
  • Secondary Market: Yes
  • Auto-invest Function: Yes
  • Minimum Investment Amount: GBP250
  • Currency of Investment: GBP
  • Platform Founding Year: 2014
  • Country of Operation: UK

You can sign up for any of the 3 investment packages on the platform:  Income Plan, Balanced Plan, and Growth Plan. Their capital to dividend yield ratio differentiates these plans. The rental income is distributed in the form of dividends. And you can expect to earn dividend yields from 2 to 3% depending on the property. The platform lets you view the projected returns you can make over time.

Property Partner is one of the few property crowdfunding platforms in the UK that accepts investors from all over the world. All you must do is provide acceptable identification documents and a utility bill to open an account.

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 ÂŁ20,000 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.

Crowdestate

Crowdestate - P2P property platform review

Crowdestate is a Property crowdfunding investment firm based in Estonia. Established in 2015, the company has since extended beyond Estonia, operating in Latvia, Italy, and Finland.

The platform allows you to fund project developments like residential, healthcare, retail, and office buildings. 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.

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.

  • Type of Investment: Real Estate
  • ROI: 11.2%
  • Security: Assets
  • Secondary Market: Yes
  • Auto-invest Function: Yes
  • Minimum Investment Amount: EUR100
  • The currency of Investment: Euro
  • Platform Founding Year: 2014
  • Country of Operation: Estonia

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.

CrowdLords

CrowdLords - UK rental income from real estate

CrowdLords is a UK crowdfunding platform that allows you to invest in real estate online. It focuses on providing investment opportunities in buy-to-let and development projects.

They have a wide range of properties available to investors allowing them to diversify their real estate portfolio. You can become part-owner of a project by investing in equities, or you can invest in debts and earn a fixed interest. Most of the properties featured on the CrowdLord’s website are eligible for ISA

  • Type of Investment: Real Estate
  • ROI: Up to 30%
  • Security: Asset
  • Secondary Market: No
  • Auto-invest Function: No
  • Minimum Investment Amount: GBP1,000
  • Currency of Investment: GBP
  • Platform Founding Year: 2014
  • Country of Operation: UK

CrowdLords operate an investment model that makes use of a Special Purpose Vehicle (SPV) – a Limited Company – to hold the property. Funding is done through a combination of equity and debt and is provided from the crowd of investors.

CrowdLords offers some of the highest returns in the real estate crowd investing sector- up to 30% in some cases. The investment duration ranges from 6 to 36 months.

Adult investors from all over the world can invest on CrowdLords excepts for US residents.  Although there is no secondary market, you can transfer your shares if you find a buyer.

Tessin: Best Nordic Property Investment Platform

Tessin Real Estate Crowdfunding Platform From Sweden

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.

Inveslar: Best in Spain

Inveslar is a crowdfunding platform for real estate projects in Spain. They offer investment opportunities in properties all over Spain. With a bulk of their interest in choice properties located in fancy neighborhoods in Barcelona.

You can either invest in ongoing projects or buy shares in properties from the marketplace. They also have residential properties for outright sale.

Inveslar forms a company for each development project, and to invest in the property; you’ll buy shares in that company. The platform collects a 4% commission on the capital you invest in each project. For buy-to-let projects, Inveslar takes a management fee of 10% of the gross rent. For property sales, the platform takes 2% of the price of the property.

  • Type of Investment: Real Estate
  • ROI: Up to 20%
  • Security: No
  • Secondary Market: No
  • Auto-invest Function: No
  • Minimum Investment Amount: EUR100
  • Currency of Investment: Euro
  • Platform Founding Year: 2016
  • Country of Operation: Spain

Inveslar has 3 investment models – flash sale, fixed loans, and equity-saving models. You are better of investing in all 3 to diversify your portfolio and reduce your risk. You also earn varying interest rate from your investments. You can choose short-term or long-term projects as it suits you. But no, there’s no secondary market, so ensure you only use funds you won’t be needing soon for long-term projects. If you invested in rental properties, you’d be paid monthly returns.

Sourced Capital

Sourced capital is a UK-based property crowdfunding platform. They offer investors a transparent and simplified way of getting into real estate investing. The properties are listed on the site with images, location, and other crucial details, so you know where your money is going.

The platform only lists experienced developers in need of funds after a structured project appraisal and a thorough credit risk approval process. The loans are then listed on the platform where people can select their investments, starting from only £250. Investments are secured with a first charge against the property collateral. These ensure that all precautions are taken to protect investor’s funds while maximizing profit.

  • Interest rate: 10 to 12% per annum
  • Security: Mortgage
  • Secondary Market: No
  • Auto-invest Function: Yes
  • Minimum Investment Amount: ÂŁ250
  • Currency of Investment: GBP
  • Platform Founding Year: 2013
  • Country of Operation: UK
  • Who can invest: investors from all over the world
  • Withholds tax: No

Investors can expect to get a return of about 12% on their investments. The average loan duration ranges from 6 to 18 months. And it doesn’t offer a secondary market which means you’ll have to wait till maturity to exit your investments. However, the relatively short-term duration makes early exit a bit redundant.

The House Crowd

The House Crowd - UK property investments

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 ÂŁ1000. 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: ÂŁ1000
  • 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.

EvoEstate

EvoEstate - Aggregator platform for real estate deals in Europe

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

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.

  • 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

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

Profitus

Profitus Platform Review

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.

Röntgen

Rontgen is a Lithuanian real estate crowd investing platform that is known for high-yielding real estate projects. It’s operated by  UAB TreÄŤia Diena a firm that is recognized by the Bank of Lithuania. Project listed on the platform and their initiators are carefully curated to give investors the best quality deals. Once selected, developers can get up to EUR5million in funding. Rontgen is run by a team of professionals with expertise in fintech and real estate.

Rontgen finances only real estate development projects with necessary building permits. Real estate firms can also sell corporate bonds on the platform to finance their projects. Rontgen evaluates the projects critically before opening them for investors to fund.

  • Type of Investment: Real Estate
  • ROI: Up to 12%
  • Security: None
  • Secondary Market: No
  • Auto-invest Function: Yes
  • Minimum Investment Amount: EUR100
  • Currency of Investment: Euro
  • Platform Founding Year: 2017
  • Country of Operation: Lithuania

Rontgen is open to foreigners who are of age, and the minimum investment is EUR100. The return on investment may be as high as 12% with the maturity period in multiples of 6 months, depending on the project. The average duration is 12 months. Payments to investors can be made periodically or at the end of the project.

The platform is regulated by the Bank of Lithuania, just like other alternative investment platforms in the country.

NordStreet

Nordstreet Review

Nordstreet 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.

Housers

Housers is a real estate crowd investing platform based in Spain that offers investment opportunities in the EU. With projects all over Europe; it allows investors to invest in loans backed by assets. Initially launched in Spain in 2016, it has since then expanded into the Italian and Portuguese property market.

Generally, Housers gives a good return for most of its loans, especially when compared with other real estate crowdfunding platforms in the EU. The problem is that Housers hardly offers many loan deals at a time. As at the time of writing, the platform just has 3 projects open for crowdfunding

  • Type of Investment: Real Estate
  • ROI: Up to 11%
  • Security: Asset
  • Secondary Market: Yes
  • Auto-invest Function: No
  • Minimum Investment Amount: Euro 50
  • Currency of Investment: Euro
  • Platform Founding Year: 2016
  • Country of Operation: Spain, Italy, Portugal

With Housers, you can expect a return of between 4.5-11% on your investment. This will depend on the type of loan you invested in. The platform offers 3 types of loans which are all secured by the property. These include buy-to-sell, buy-to-let, and development loans.  Loans typically last for a minimum of 12 months, with some as long as 10 years.

The minimum initial investment of EUR1000 is on the high side and may prove a barrier to many prospective investors. Housers also lack an auto-invest feature as well as a buyback guarantee. But it has a secondary market which means you can sell your investment at any point.

The platform is relatively easy to sign up and use. However, the website is a bit outdated compared to that of other real estate crowdfunding platforms.

BrickStarter: No. 1 Platform for investing in Spanish holiday rental properties.

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%

Walliance: Italian Investment Platform

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

Conclusive Remarks on the Best Property Crowdfunding Sites in Europe

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.

Frequently Asked Questions

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.

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 Involved?

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.

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