Best real estate crowdfunding sites in Europe: if you want to invest in p2p lending in the real estate market, this post will guide you through some of the best options in the European market
The crowdfunding and the peer-to-peer economy is booming online. Nowadays, it is possible to invest in almost any kind of project from the comfort of your home. What is even better is that you don’t need a high sum to start. Many real estate crowdfunding platforms allow you to start investing with amounts under 100 euros.
Add the speed of SEPA transactions and other money transfers services. What you get is the possibility of investing in real estate projects all over Europe with very low minimums and also paying low fees.
Best Real Estate Crowdfunding Sites in Europe
When it comes to crowdfunding and real estate, there are a few different types of websites and also different types of investments. You can invest in a company that manages few properties, and you can also invest in independent estates available through a marketplace platform. Finally, you can invest in projects that are being built to be sold, and earn interest on that, or in buy-to-let properties, earning a monthly income on the lease, plus property valuation when it gets sold.
Every platform has its own specific ways to work and functionalities, but below you will find some of the best real estate crowdfunding platforms sites in Europe:
Property Partner is one of the biggest real estate crowdfunding platforms in the UK and, by consequence in Europe. It has a large amount of properties in various parts of the UK to choose from, in one of the most diversified portfolios of real estate crowdfunding sites currently available.
Property Partner Pros
- Excellent platform to invest in the British real estate market.
- Open to international investors.
- Large real estate portfolio with properties all across the UK.
Property Partner Cons
- Currently only offers real estate investments in the UK.
EstateGuru is a company with headquarters in Estonia offering crowdfunding investments in various real estate projects. Most of the real estate projects are in the Baltic States (Estonia, Lithuania, Latvia).
The range of projects is pretty varied, with commercial and residential developments. The company is pretty solid and is one of the pioneer’s in the crowdfunding real estate market in Europe.
- Loans are secured and backed by real estate.
- High interest rates, usually between 10 and 12 %
- LTVs are less than 75%
- No secondary market
- Few loans per month to diversify your portfolio
CrowdProperty is a UK-based real estate peer-to-peer lender that specializes in property bridging and development loans with low loan-to-value ratios. It’s based in Birmingham, UK.
Unlike other P2P lending companies, CrowdProperty issues asset-backed loans. All loans have 1st legal charge on assets that act as collateral. Should the loan default, investors are first to get capital once the underlying asset is sold.
- FCA authorized and regulated since Nov 2017
- Long operating track record and proven experience with over 5 years in the market
- Good yields of about 8% p.a. on secured assets with excellent LTV’s.
- 1st legal charge security on all projects
- The simple registration process and an intuitive easy-to-use website
- Availability of an AutoInvest option
- Availability of an ISA and pension lending for tax-free investing
- A high volume of loans on the platform
- Thorough due diligence ensuring 100% repayment and minimal defaults of capital and interest and zero defaults to date
- Market leading transparency on their statistics page
- Independent verification of lending performance by Brismo
- No repurchase guarantee
- Lack of a secondary market
- Minimum investment requirement of 500 GBP on each loan (unless using AutoInvest to divide capital across up to 10 projects, investing 50 GBP minimum in each)
- AutoInvest only allows a maximum of 20% of the portfolio for lending
CapitalRise is a real estate investment platform out to disrupt the old way of investing. It aims to give all investors access to real estate opportunities previously the preserve of corporations and the uber-wealthy.
Alex Michelin, Andrew Dunn, and Uma Rajah co-founded the company and launched in July 2016. Through the platform, over 46M pounds worth of investment has gone towards prime central London development properties.
- No fees charged to investors for using the platform
- Potential returns of 8-12% pa on investments
- Innovative Finance ISA (IFISA) available providing tax-free returns on investments
- Founders invest personal funds into every project, giving them “skin in the game.”
- Professional founding members with over 75 collective years of experience in the sector
- Transparency with details on investments including location, sales/letting data, developer history, financial appraisal, etc. provided
- Simple application process
- High minimum investment at 1000 pounds
- Risk of investing in prime real estate backed loans
- Investment performance not covered by the Financial Services Compensation Scheme (FSCS)
- Time-consuming to carry out due diligence
Rendity is a real estate investing platform hailing from Austria. They ave excellent real estate opportunities to invest, mostly in Vienna, but also with previously funded projects in Graz and in Berlin. You can earn pretty solid returns with Austrian real estate investment and a lower than average risk when compared to most European property markets
- Interest earnings start from the first day of the investment.
- The access to Austrian real estate markets for investors looking to diversify their portfolio.
- The platform offers a 25 EUR signing bonus.
- The platform has a minimum investment of 1000 EUR per project, which means investors require high capital to diversify on the platform.
- The returns 6% -7% are below the market average.
Reinvest24 is a platform focused exclusively on real estate projects. Based in Estonia, Reinvest24 provides excellent opportunities to invest and earn income from rental yields and property appreciation in a number of different real estate projects. Read more about it on our Reinvest24 review.
- Great real estate crowd investing platform.
- Attractive rental yields (above the average for most European countries).
- Open to investors worldwide.
- Relatively low number of projects.
- No Auto Invest tool as of 2020.
UPDATE: DUE TO COVID-19 CIRCUMSTANCES GRUPEER HAS MADE THE FOLLOWING STATEMENT:
“Regretfully, we are forced to inform you that in the current circumstances it is not possible for us to continue operations as before with an objective cause out of our control. Therefore, we hereby notify you that all payments to investors of Grupeer are currently suspended due to emergency state declared in European Union and worldwide regarding COVID-19 pandemic crises”
We here at Value Nomad will be monitoring these situations closely and will provide updated information as it arises. In the meantime, we cannot recommend investing with Grupeer at this time.
Grupeer is an option for people willing to invest in real estate development projects in Europe. It is actually a p2p lending platform covering not only real estate, but also other types of investments.
They had a nice variety of properties in several countries. By the time this post was updated, it had development projects in Belarus, Norway and Germany.
- Great average return on investment.
- Diversify projects and loans to invest, including real estate.
- Auto invest is available.
- Limited number of real estate projects available.
Housers is a crowdfunding real estate platform with buy-to-let opportunities among other types of real estate investment. The company is from Spain, where most of the properties are as well. At the time this article was written, there were opportunities to invest in the Italian and the Portuguese real estate market too.
iFunded.de is another of the main players in the crowdfunding p2p market in Europe. The company hails from Germany and by the last time I checked their projects, most of them were in the Berlin area, with a few exceptions.
Investing in Germany real estate is one of the safest investments anyone can do, and this platform is a definitely a good choice for that.
Alt.Estate is a revolutionary platform mixing the power of the blockchain with real estate crowdfunding. While the project is due to start its operations in late 2018, you can already buy tokens before that and invest in real estate. They plan to have real estate not only in Europe but also in other markets like Japan.
This post contains affiliate links, registering through some of these links may result in a small commission earned by the site. All kinds of investment involve a certain degree of risk, study well each platform and investment to determine whether the investment and the risks involved are suitable to your investment portfolio.
Other Resources for Crowd Investing and Peer to Peer Lending
If you are considering to invest on real estate crowd investing, or other types of peer to peer investments, we have plenty of resources on that. You may want to check our Grupeer review, or also the best sites for investing in peer to peer lending.
Are you already investing in peer to peer lending or in real estate crowdfunding? Leave your thoughts and comments below.