Best European Real Estate Crowdfunding Sites in 2022
We created an overview so that you can make the best and safest investment possible. We might get a fee from referring when someone clicks through our website to one of the platforms we compare. In any case, this does not affect our recommendations or comparisons.
Real estate crowdfunding is becoming more popular and is one of the easiest ways of investing. One of the reasons demand for property-backed lending is so high, is that it uses real estate as collateral: the property can be sold when a borrower is incapable of paying back the loan. This is an advantage compared to other forms of lending, and definitely suits the needs of the more conservative investor.
Multiple platforms have emerged in various countries, although the quality of the platforms as well as the available offers can differ significantly. You can invest in, amongst others, development projects, business loans and bridge loans. You can start investing with as little as EUR 50 and returns for investors average around 6 to 15% on a yearly basis. Listed below is a selection of the best investment opportunities available in Europe:
| Area of operation | Germany, Spain, Finland, the Baltics, others |
|---|---|
| Average annual return | 11.72% | Currency | EUR |
| Secondary market | Available |
| Minimum investment amount | 50 EUR |
EstateGuru is a marketplace for short-term, real estate backed loans. You can invest in development, bridge, or business loans in countries such as Spain, Germany, Finland, Sweden or the Baltics – amongst others. It is one of the best P2P platforms available this moment. You can read more about EstateGuru in our full review here. Summarized, the main characteristics are as follows:
- EstateGuru is a major player with over 87.000 investors and has funded over EUR 388 million in loans (July 2021);
- Impressive track record with no loss of money for investors;
- Almost all loans backed by first rank mortgage;
- Yearly interest rates up to 12%;
- Transparency is an example for other P2P lending sites.
Therefore, when considering investing in loans backed by real estate, EstateGuru would be our top pick.
| Area of operation | United Kingdom |
|---|---|
| Average annual return | 10.8% | Currency | GBP |
| Secondary market | Available |
| Minimum investment amount | 5.000 GBP |
Bridgecrowd, who recently changed it name to SoMO, is a platform where you can invest in loans backed by property, almost all of which is residential. It is the leading platform in the UK and only offers deals from within Britain. Starting in 2014 it has disbursed over GBP 140 million in loans as of today (July 2021). Borrowers using SoMo/Bridgecrowd vary and range from:
- Those requiring funds for business purposes;
- Investors who need funds to acquire an additional property purchase;
- To buy a property, flip and/or refurbish and sell it.
SoMo/Bridgecrowd distinguishes itself clearly:
- Impeccable track record with no loss of money for investors;
- All loans are secured;
- Yearly interest rates up to 11%;
- Amount of available loans is high;
- Large amounts of money can be invested.
If you are a UK resident, and you want to invest in Great Britain, SoMo/Bridgecrowd is problably the best place to start.
| Area of operation | Latvia, Bulgaria, Finland |
|---|---|
| Average annual return | 14.72% | Currency | EUR |
| Secondary market | Not available |
| Minimum investment amount | 50 EUR |
Bulkestate is a crowdfunding platform aimed at funding new development or re-development projects. You can either invest in properties with a group (so-called Group Buying) or invest in a loan secured by real estate.
A loan secured by real estate is a well known way of financing. A Group Buying Deal on the other hand is less well known, and takes place when the owner of an apartment building wants to sell the entire building (all the apartments) at once. You can buy one or more apartments in that particular building. The Group Buying Deal is finalized once all the apartments in the building are sold.
Bulkestate mainly focuses on the Baltics. In this region, it is one of the best P2P platforms. Shortly, the main characteristics are as follows:
- Being a relatively small P2P platform, the quality of the available loans is very high;
- The loan to value (LTV) is on average 54%, which is a solid number when things turn sour;
- Fairly high annual interest rates up to 15%.
Due to the fact that Bulkestate has a limited offer on its platform, diversification options are limited. Nevertheless, the loans Bulkestate is offering are of high quality with high returns and are definitely an addition to an investor’s portfolio.
| Area of operation | United Kingdom |
|---|---|
| Average annual return | 10.24% | Currency | GBP |
| Secondary market | Available |
| Minimum investment amount | 1.000 GBP |
Blend Network offers real estate deals primarily originating from the UK market. Its popularity is increasing due to its stable performance and loans tend to be financed quickly. Summed up, Blend Network can be described as follows:
- Blend Network is a relatively young player and has disbursed over GBP 20 million in loans over the last few years;
- No loss for investors and very low number (<2%) of late loans which is a noteworthy result;
- Almost all loans are backed by a mortgage and a personal guarantee of the borrower;
- Annual interest rates up to 10%.
Blend Network is a very solid platform with decent returns and is therefore an excellent addition to an investor’s portfolio. If you want to start investing with them, use the link below.
| Area of operation | Austria, Germany |
|---|---|
| Average annual return | 6.1% | Currency | EUR |
| Secondary market | Not available |
| Minimum investment amount | 500 EUR |
Austrian based platform Rendity started its operations in 2015, is an established player and has funded over 100 projects worth EUR 65 million (July 2021). With Rendity you usually invest in high end real estate, like development projects or real estate that will be rented out in cities such as Vienna or Hamburg. There are actually two forms of investment you can choose from:
Rendity Income
- You invest in real estate that is already being rented out;
- Returns are paid every 3 months.
Rendity Growth
- You invest in development loans. The funds will be used to either finance renovation projects or to develop whole new projects;
- Interest payments are usually on a yearly basis.
Therefore, if investing in real estate in Austria and Germany suits your needs, Rendity definitely offers a fair deal. In addition, when you sign up with Rendity via this link, you will get a bonus of EUR 25.
Other Platforms Worth Considering When Investing In Loans Backed By Real Estate
There are other solid P2P platforms available when you want to invest in loans backed by real estate.
- Max Crowdfund;
- EvoEstate;
- LendSecured;
- Profitus;
- Heavy Finance. Heavy Finance offers loans, but instead backed by real estate, these loans are secured over vehicles or other heavy machinery.
Although it is not their core business, Twino and PeerBerry also offer investment opportunities in real estate. Volumes tend to be lower on these platforms, but some good deals can be found here as well.
Conclusion: Worth Investing In Loans Secured By Real Estate?
EstateGuru, SoMo/Bridgecrowd, Bulkestate, Blend Network and Rendity are strong platforms to invest with and they still have plenty of growth potential:
- Loans backed by real estate are a solid and well proven method to provide collateral. For instance, EstateGuru has an excellent trackrecord in lending as well as in recovering the small amount of loans that have defaulted so far;
- Although the number of loans to invest in varies per platform, overall the amount available should serve the needs of the investors;
- The platforms are still expanding their markets; investors can gain even more from this by diversifying;
- The annual interest rates of 6-15% are decent and guarantees a stable cashflow once you start investing.
Summarizing, these 5 platforms are some of the best P2P platforms we’ve come across. Once you’re acquainted with them, the actual investing doesn’t take up much of your time. Therefore, if you want to start investing you can hardly get around these platforms and they should definitely be included in your investment portfolio.
What do you think? Let us know in the comments section below!