6 Best Real Estate Crowdfunding Platforms in Europe
Want to invest in real estate? Here are the best European real estate crowdfunding platforms to invest with:
| Return | 14.50% |
| Investors | 4,600 |
| Minimum | €50 |
| Launched | 2023 |
About Maclear
Maclear is the best real estate crowdfunding platform in Europe as it has the highest rating on Trustpilot. The platform focuses on providing investors with high returns of up to 15% on business loans, backed by collateral and a Provision Fund for added security. Maclear’s Swiss regulation and user-friendly interface have garnered positive reviews, making it a promising choice for those seeking to diversify their investment portfolios in the European market.
Pros:
- A secondary market is available for making an early exit.
- New investors can receive a 1.5% cashback bonus for 90 days.
- The platform is highly rated on Trustpilot.
- The platform is regulated.
Cons:
- Not possible to use auto-invest.
| Return | 11.75% |
| Investors | 4,400 |
| Minimum | €1 |
| Launched | 2022 |
About Fintown
Fintown is one of the best real estate crowdfunding platforms in Europe as it offers investors the opportunity to earn attractive returns of up to 15% from rental properties and development projects. The platform is backed by the experienced Vihorev Group, ensuring a strong foundation and reliable management. With a low minimum investment of just €1, Fintown makes real estate investing accessible to a wide range of investors. Additionally, the platform’s focus on transparency and regular updates provides investors with confidence in their investment decisions.
Pros:
- The platform is highly rated on Trustpilot.
Cons:
- A secondary market is not available.
| Return | 15.10% |
| Investors | 6,100 |
| Minimum | €10 |
| Launched | 2023 |
About Indemo
Indemo is one of the best real estate crowdfunding platforms in Europe. The platform is regulated by the Central Bank of Latvia, ensuring legitimacy and reliability. It focuses on real estate-backed loans in Spain, offering investors attractive average annual returns of up to 15.1%. Despite the absence of a secondary market, which limits liquidity, Indemo’s auto-invest feature and solid returns make it an appealing choice for long-term investors. With a low minimum investment requirement of €10, it provides an accessible entry point for investors looking to diversify their investment portfolios.
Pros:
- The platform is highly rated on Trustpilot.
- Auto-invest tool is available.
- The platform is regulated.
Cons:
- A secondary market is not available.
| Return | 10.11% |
| Investors | 43,000 |
| Minimum | €100 |
| Launched | 2018 |
About PROFITUS
PROFITUS is one of the best European real estate crowdfunding platforms as it offers investors the opportunity to earn competitive returns through mortgage-backed loans while being regulated by the Central Bank of Lithuania, ensuring a secure and transparent investment environment. The platform boasts a strong track record with a low default rate and a high-performing loan portfolio. Investors benefit from a user-friendly interface, a straightforward registration process, and the option to use auto-invest for convenience. Despite its smaller size, Profitus provides a reliable investment option for those seeking exposure to real estate projects in Lithuania and beyond, with an average return of around 10%.
Pros:
- The platform is highly rated on Trustpilot.
- A secondary market is available.
Cons:
- Small platform.
| Return | 11.04% |
| Investors | 7,500 |
| Minimum | €100 |
| Launched | 2023 |
About Crowdpear
Crowdpear is one of the best real estate crowdfunding platforms in Europe due to its competitive returns, robust regulatory framework, and backing by a professional team. With an average annual yield of up to 14%, investors benefit from secured mortgage-backed loans primarily in Lithuania. The platform’s regulation by the Central Bank of Lithuania and the European Crowdfunding Licence ensures a high level of security and transparency. Additionally, Crowdpear’s connection with PeerBerry provides further credibility and expertise in managing real estate investments. Despite some limitations in diversification and liquidity, Crowdpear’s strong loan performance and attractive interest rates make it a standout choice for investors seeking stable returns in the European real estate market.
Pros:
- The platform is highly rated on Trustpilot.
- A secondary market is available.
- The platform is regulated.
Cons:
- Auto-invest tool is not available.
| Return | 10.19% |
| Investors | 162,000 |
| Minimum | €50 |
| Launched | 2014 |
About EstateGuru
EstateGuru is the largest real estate crowdfunding platform in Europe with over 162,000 investors. The platform offers property-backed loans, allowing investors to earn returns by financing real estate projects. Despite its initial success, EstateGuru has faced challenges due to aggressive expansion, resulting in a high default rate of over 50% in its loan portfolio. This has impacted investor confidence and highlighted the platform’s risk management issues. While it remains a major player in the market, potential investors should carefully consider these factors and explore alternatives for better diversification and risk mitigation.
Pros:
- A secondary market is available for making an early exit.
Cons:
- High default rate.
What is a real estate crowdfunding platform?
A real estate crowdfunding platform is an online service that allows investors to directly invest in a range of real estate properties. These platforms work by pooling together funds from multiple investors to purchase properties, which can range from residential to commercial real estate. This allows individual investors to own a share of a property and earn returns from its income or sale, without the need to buy the entire property outright. Real estate crowdfunding platforms are a popular way for investors to diversify their portfolios and gain exposure to the real estate market with a relatively small initial investment.
What are the best real estate crowdfunding platforms in Europe?
To find the best real estate crowdfunding platform, investors should consider factors like the minimum investment required, types of properties available for investment, the platform’s track record, transparency, user experience, customer service, fees, and regulation. The best real estate crowdfunding platforms in Europe often offer a diverse range of properties, detailed information about each investment, and a proven history of returns.
Overview of the 5 best real estate crowdfunding platforms in Europe:
| Platform | TrustScore | Yield |
|---|---|---|
| Maclear | 4.6/5 | 14.50% |
| Fintown | 4.6/5 | 11.75% |
| Indemo | 4.4/5 | 15.10% |
| PROFITUS | 4.0/5 | 10.11% |
| Crowdpear | 3.9/5 | 11.04% |
| EstateGuru | 1.4/5 | 10.19% |
Pros and cons of real estate crowdfunding platforms
Here are the pros and cons of using real estate crowdfunding platforms:
Pros:
- Historical high returns
- No management of properties
- Requires little capital to get started
- Easy to diversify
Cons:
- Platform risk
- Highly correlated with real estate markets
- Uncertainty about how the investments will perform in a real estate crash
Is real estate crowdfunding a good investment?
Real estate crowdfunding first really started to gain traction in the early 2010s. Before this investors could only invest in properties directly, through REITs or other exchange-listed products.
In the first 10 years of real estate crowdfunding, most investors have gained massive returns and it has not been unusual to see returns of over 10% annually. However, as the type of crowdfunding is highly dependent on property values, it also involves some risks that are worth considering.
How much money can you make with real estate crowdfunding?
Over the past few years, it has not been unusual for investors to be able to achieve annual returns of +10% by investing in some of the highest returning and best European real estate crowdfunding platforms.
If you invest €10,000, the amount of money you would be able to make with a 10% annual return would be €1,000.
Is real estate crowdfunding safe?
No investment is without any risk, and even if you only invest your money on the best real estate crowdfunding platforms, your capital is still at risk.
