How to invest in real estate like a pro
Investing in real estate like a pro—and effortlessly—is an increasingly real possibility for small investors, attracted by a market that has traditionally offered a good balance between low risk and high returns. The ability to generate passive income and the sustained appreciation of real estate in recent years have increased its appeal. Even so, many people perceive certain entry barriers, such as complex management or bureaucratic procedures, which can make them hesitate about whether it’s really worth taking the plunge.
However, the reality is quite different. The number of accessible alternatives that don’t require much effort from the investor is growing; in fact, it’s never been easier to invest in the real estate market. Some new models have torn down the traditional barriers related to time commitment, purchasing power, or the need to be in a specific location. For all these reasons, here at Urbanitae, we analyze several options to dive into (profitable) real estate investment beyond the traditional buy-and-sell model.
The first step in making real estate investments is to define our investor profile, which will lay the groundwork for what we want. Are we willing to take on more or less risk? We need to determine what we’re looking for with this investment—steady income with a set frequency, higher risk in exchange for greater returns…
In this regard, it’s important to note that there are options for investing without needing to directly acquire property, which greatly simplifies both the investment process and the “commitment” involved in these types of operations.
Real estate crowdfunding with Urbanitae: invest in real estate like a pro
Another common myth about real estate investing is that a large amount of capital is required. As a result, many investors choose to put their money into other assets with a lower entry ticket, such as cryptocurrencies. However, the rise of new alternative real estate investment models—such as real estate crowdfunding or crowdlending—has forever changed how people invest in the sector.
This investment model consists of collective contributions that allow multiple investors to fund a real estate project, making it possible to invest with small amounts of money, as the minimum contributions aren’t particularly high. Through this system, developers get the funds needed to carry out their projects, and participants receive a return once the project is sold. The benefits of this model include, for example, lower entry barriers for retail investors, ease of management, and the traceability of transactions, among others.
Urbanitae is a platform specialized in equity crowdfunding, offering quick deal closures and democratizing access to real estate investment projects, while also aiming for higher returns. With 190 projects and a minimum entry ticket of just €500, Urbanitae has achieved an average annual return of over 13%.
Investing in SOCIMIs: earning money from real estate without owning property
SOCIMIs (Spanish REITs—Real Estate Investment Trusts) are investment vehicles that buy residential properties, hotels, or office buildings to rent them out and earn a return. By purchasing shares, investors can access the real estate sector without getting involved in operations or property management, earning returns with very little effort. In Spain, prominent SOCIMIs include Merlin Properties, Aedas Homes, and Colonial.
Delegated management: how to invest in real estate without the hassle
One of the most common real estate investment strategies is to rent out a property to generate long-term monthly income. Rental demand in Spain continues to grow, and it’s estimated that 20.4% of households now live in rented homes—a trend that’s expected to continue, highlighting the potential of this strategy.
However, this approach often requires a lot of attention: dealing with tenant issues, ensuring maintenance, preventing missed payments, resolving incidents… a host of situations that demand extra effort and often discourage landlords.
That said, there are now alternatives on the market that allow you to completely forget about property management. In this system, a specialized company takes over all the administrative and maintenance tasks. The upside: all the hassle is outsourced and worries are avoided. The downside: these companies typically charge significant fees.
Investing in housing in Spain’s depopulated areas
The surge in prices in major cities like Madrid or Barcelona (+18.6% and +7% in 2024, respectively, according to Fotocasa) has made it increasingly difficult to buy property in these areas.
In this context, Spain’s “emptied” or rural regions represent a major investment opportunity. Without a doubt, the biggest draw is the long-term appreciation potential: prices are far more competitive than in overheated urban areas, and the prospect of increased migration to rural zones (according to Fotocasa Research, 63% of Spaniards plan to move to a village) makes rural properties highly attractive. Moreover, for those who prefer short-term returns, rural housing can be used for tourism, a booming practice that offers stable and regular income.
