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.elementor-element.elementor-element-79a3185{width:50%;}}</style>{"id":29567,"date":"2023-09-24T12:39:02","date_gmt":"2023-09-24T10:39:02","guid":{"rendered":"https:\/\/blog.urbanitae.com\/?p=29567"},"modified":"2026-09-24T13:58:44","modified_gmt":"2026-09-24T11:58:44","slug":"real-estate-crowdfunding-what-it-is-and-why-to-invest","status":"publish","type":"post","link":"https:\/\/blog.urbanitae.com\/en\/2023\/09\/24\/real-estate-crowdfunding-what-it-is-and-why-to-invest\/","title":{"rendered":"8. Real estate crowdfunding: what it is and why to invest"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"29567\" class=\"elementor elementor-29567 elementor-27390\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section data-particle_enable=\"false\" data-particle-mobile-disabled=\"false\" class=\"elementor-section elementor-top-section elementor-element elementor-element-1806af2 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"1806af2\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-2ce0333\" data-id=\"2ce0333\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-6ce0ae0 elementor-widget elementor-widget-video\" data-id=\"6ce0ae0\" data-element_type=\"widget\" data-e-type=\"widget\" data-settings=\"{&quot;youtube_url&quot;:&quot;https:\\\/\\\/youtu.be\\\/KAs3RAr-VnY&quot;,&quot;video_type&quot;:&quot;youtube&quot;,&quot;controls&quot;:&quot;yes&quot;}\" data-widget_type=\"video.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-wrapper elementor-open-inline\">\n\t\t\t<div class=\"elementor-video\"><\/div>\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section data-particle_enable=\"false\" data-particle-mobile-disabled=\"false\" class=\"elementor-section elementor-top-section elementor-element elementor-element-b8be46f elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"b8be46f\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-61efd02\" data-id=\"61efd02\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-7a715389 elementor-widget elementor-widget-text-editor\" data-id=\"7a715389\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Real estate crowdfunding has become established as an investment alternative within the real estate sector in recent years.<\/p><h2>What is real estate crowdfunding?<\/h2><p>The basic idea behind crowdfunding could not be simpler: many people collaborating to bring a project forward. The concept is based on collective financing, where multiple investors contribute capital to the same project.<\/p><p>Real estate crowdfunding can therefore be defined as a collective financing model that allows a diverse group of people \u2014 investors \u2014 to finance real estate projects through digital platforms, such as <a href=\"https:\/\/urbanitae.com?utm_source=blog+en&amp;utm_medium=referral&amp;utm_campaign=urbanitae_1023&amp;utm_term=web+urbanitae&amp;utm_content=aprende+que+es+crowdfunding+inmobiliario\" target=\"_blank\" rel=\"noopener\" data-wplink-url-error=\"true\">Urbanitae<\/a>. These platforms connect real estate developers seeking financing for their projects with investors looking to diversify their portfolio without committing large sums of money.<\/p><h2>How it works<\/h2><p>It is increasingly common for real estate developers to turn to alternative sources of financing outside banks. There are several reasons for this. Since the 2008 crisis, <strong>banks have limited their exposure to the real estate sector<\/strong>, and land financing has become almost off limits for them. In addition, due to the new mortgage law of 2019, financing new-build housing is no longer as profitable for them, as they do not automatically retain the buyers\u2019 mortgages.<\/p><p>As a result, real estate crowdfunding platforms are an efficient and reliable alternative for financing projects of up to five million euros \u2014 the maximum amount authorised by law. <strong>In the case of <a href=\"https:\/\/urbanitae.com?utm_source=blog+en&amp;utm_medium=referral&amp;utm_campaign=urbanitae_1023&amp;utm_term=web+urbanitae&amp;utm_content=aprende+que+es+crowdfunding+inmobiliario\" target=\"_blank\" rel=\"noopener\" data-wplink-url-error=\"true\">Urbanitae<\/a>, the capital we raise is usually used to finance the purchase of the land on which the project will be developed or the start of construction work<\/strong> until the developer loan is obtained. We also offer our own <a href=\"https:\/\/blog.urbanitae.com\/2022\/10\/27\/lanzamos-nuestro-prestamo-promotor-con-respuesta-en-7-dias\/\" target=\"_blank\" rel=\"noopener\">developer loan<\/a> model.<\/p><p>On many real estate crowdfunding platforms, most projects are residential in scope \u2014 although we are open to any segment with good opportunities. <a href=\"https:\/\/blog.urbanitae.com\/en\/2023\/07\/09\/how-urbanitae-chooses-its-projects\/\" target=\"_blank\" rel=\"noopener\">We select projects<\/a> based on several criteria, but above all we look at the developer\u2019s capacity and track record, the project\u2019s commercial progress and the status of the building permit. In addition, we submit the decision to an investment committee with external experts.<\/p><p><strong>There are two main types of <a href=\"https:\/\/blog.urbanitae.com\/en\/2023\/01\/20\/8-what-are-the-debt-projects-like-crowdlending\/\" target=\"_blank\" rel=\"noopener\">projects: loan or debt projects \u2014 real estate crowdlending<\/a> \u2014 and capital gains projects \u2014 equity crowdfunding.<\/strong> In the first case, investors group together to lend money to the developer, generally in the form of a fixed-rate loan. Once the term has ended, the developer repays the money and investors recover their investment with the corresponding return.<\/p><p>In equity projects, investors enter into partnership with the developer, sharing both the project\u2019s risks and the return generated, usually around 15% per year. Here there is no fixed term, but rather an estimate, as delays may occur in commercialisation, the granting of the permit or increases in construction costs. At Urbanitae, the majority of <a href=\"https:\/\/urbanitae.com\/en\/projects\/\" target=\"_blank\" rel=\"noopener\">projects<\/a> are capital gains projects.<\/p><h2>Who regulates real estate crowdfunding?<\/h2><p>Real estate crowdfunding platforms in Spain had been regulated since 2015 by Title V of <a href=\"https:\/\/www.boe.es\/eli\/es\/l\/2015\/04\/27\/5\/con\" target=\"_blank\" rel=\"noopener\"><strong>Law 5\/2015<\/strong><\/a>. In October 2020, the European Union approved a regulation to unify, at European level, the rules applicable to crowdfunding platforms: <a href=\"https:\/\/www.boe.es\/buscar\/doc.php?id=DOUE-L-2020-81532\" target=\"_blank\" rel=\"noopener\"><strong>Regulation (EU) 2020\/1503<\/strong><\/a>. This regulation has applied in Spain since 10 November 2021, although platforms had until 10 November 2023 to adapt to it. In Spain, <a href=\"https:\/\/www.boe.es\/eli\/es\/l\/2022\/09\/28\/18\" target=\"_blank\" rel=\"noopener\"><strong>Law 18\/2022<\/strong><\/a> adapts Spanish legislation to the legal framework established at European level.<\/p><p>In addition, crowdfunding platforms are supervised by the Spanish National Securities Market Commission and, at European level, by the European Securities and Markets Authority \u2014 ESMA.<\/p><h2>Why invest: advantages and disadvantages<\/h2><p>We have already discussed the <a href=\"https:\/\/blog.urbanitae.com\/en\/2023\/08\/15\/advantages-of-investing-in-real-estate-crowdfunding\/\" target=\"_blank\" rel=\"noopener\">advantages of investing in real estate crowdfunding<\/a> on the blog. The first is that it allows access to very attractive investment opportunities from small amounts of money, such as 500 euros. For that same reason, it helps many investors diversify their portfolio by incorporating a stable sector that is resilient to inflation, such as real estate, without having to worry about management tasks or buying properties. In some cases, it can offer higher returns than other alternatives, although these depend on the type of project and the market context. <strong>In the case of Urbanitae, this may vary depending on the project, the term and the risk.<\/strong><\/p><p>Among the main disadvantages, it should be noted that it is an illiquid investment, meaning that we cannot exit it until the project ends. Another possible disadvantage is the term, which usually averages 24 months. It should also be mentioned that, like any investment, <strong>real estate crowdfunding is not risk-free:<\/strong> despite all precautions, the investor could lose capital. It is therefore important to analyse each project and not assume that all of them offer the same level of return or risk.<\/p><h2>Who is real estate crowdfunding for?<\/h2><p>This type of investment is usually a good fit for investors looking to diversify their portfolio and access the real estate sector without having to buy an entire asset, and who are willing to accept lower liquidity in exchange for potential returns.<\/p><h2>Conclusion<\/h2><p>In short, real estate crowdfunding has revolutionised the way people invest in real estate, democratising access to quality investment opportunities. Although it has advantages and disadvantages, its continued growth shows that it is a trend that is here to stay \u2014 and is growing. Before investing, it is worth analysing each opportunity, understanding the risks and assessing whether it fits within a diversified investment strategy.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section data-particle_enable=\"false\" data-particle-mobile-disabled=\"false\" class=\"elementor-section elementor-top-section elementor-element elementor-element-86c4dcd elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"86c4dcd\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-top-column elementor-element elementor-element-c4e53ef\" data-id=\"c4e53ef\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-92f8b07 elementor-widget elementor-widget-eael-creative-button\" data-id=\"92f8b07\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"eael-creative-button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t        <div class=\"eael-creative-button-wrapper\">\n\n            <a class=\"eael-creative-button eael-creative-button--rayen eael-cb-icon-position-left\" href=\"https:\/\/blog.urbanitae.com\/en\/2023\/09\/10\/14-how-to-invest-in-real-estate-in-spain\/\" data-text=\"Go!\">\n            \t    \n                <div class=\"creative-button-inner\">\n\n                                            <span class=\"eael-creative-button-icon-left\"><i aria-hidden=\"true\" class=\"far fa-arrow-alt-circle-left\"><\/i><\/span>                    \n                    <span class=\"cretive-button-text\">Previous episode<\/span>\n\n                                    <\/div>\n\t                        <\/a>\n        <\/div>\n        \t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-top-column elementor-element elementor-element-79a3185\" data-id=\"79a3185\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>You can invest in properties starting from 500 euros and enjoy double-digit returns. We&#8217;ll show you how.<\/p>\n","protected":false},"author":1,"featured_media":68735,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[832,1664],"tags":[1354,1953,879,2104,895],"class_list":["post-29567","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-apprendre-a-investir","category-guide-de-linvestisseur-debutant","tag-crowdfunding-en","tag-real-estate-crowdlending","tag-real-estate-investment","tag-real-estate-investment-2","tag-urbanitae-en"],"blocksy_meta":{"styles_descriptor":{"styles":{"desktop":"","tablet":"","mobile":""},"google_fonts":[],"version":8}},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>8. 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