Historically, the real estate sector is known as one of the most stable sectors to invest in. In addition to being stable, it is profitable, as investing in housing today is more profitable than it was 10 years ago. For all these reasons, this sector is becoming one of the most attractive for the investment public, and not only that, but more and more people have the opportunity to invest in it. But what factors explain this boom?
Its stability in the face of economic fluctuations and its profitability explain the attractiveness of real estate. Now, thanks to crowdfunding, this sector has become even more popular as it is accessible to a wide audience.
Real estate crowdfunding has allowed small investors to become part of this sector without the need to deposit large amounts of money. Let’s remember that until not too many years ago, acquiring a property and managing the entire process from scratch was one of the few options available to generate a return on real estate investment. This meant that those without enough capital for a down payment – with their subsequent payments – could not access it. And not only that, but the lack of knowledge and time was also a barrier to entering this sector.
Advantages of investing in real estate crowdfunding
In this context, real estate crowdfunding emerges as an alternative that was unthinkable for investors but has been of great help to all types of assets, both small and large.
Real estate crowdfunding is an investment system through which a group of people contributes small amounts of money to a real estate project with the aim of obtaining a return. But what are the advantages of investing through real estate crowdfunding?
Affordable tickets for all budgets
Real estate crowdfunding provides a place in this sector for all types of investors. From more moderate tickets – 500 euros, in the case of Urbanitae – you can access large projects by experienced developers. This makes it not a product reserved for large fortunes but within reach of almost any budget.
Portfolio diversification
The variety of investment opportunities offered by real estate crowdfunding allows investors to have the possibility of having a diversified portfolio with projects of different types in different cities and with different execution periods, risk, and return.
Risk Minimization
Portfolio diversification reduces the risks assumed. By investing in various projects independently of each other, the risk is spread. It also improves expected profitability since losses in one project can be offset by gains in another.
Peace of mind
Once an investment is made, the investor leaves the project in the hands of the developer and a professional team of managers who oversee its progress. Investors have the opportunity to monitor the progress of the project through the platform through which they invest.
For all these reasons, these advantages of investing in real estate crowdfunding have helped it become a great option for investors’ portfolios, further popularizing real estate investment. At Urbanitae, we have established ourselves as leaders in crowdfunding in Spain, with more than 160 million euros financed in hundreds of projects.
