The Best Real Estate Crowdfunding Sites in Europe

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Real Estate Crowdfunding is a great new way to invest in commercial and residential real estate. It requires much less capital than buying a rental property, at the same time offering better diversification and less fuss with property management. It also brings competitive returns with less volatility and higher investment control compared to popular REITs. Amidst this ongoing crowdfunding boom, more and more platforms have been popping up to meet the investment appetites of the growing crowd.

With this proliferation of crowdfunding sites, choosing the right one for you might be a daunting task, yet an important one.

Best Real Estate Crowdfunding Sites in Europe

Bergfuerst

  • Launch date: 2012
  • Total capital invested: €113m+
  • Average annual interest rate: 5-7%
  • Investment option(s): Individual deals (construction of new property or renovation or modernisation of existing property) and a savings plan, which automatically invests your capital in a well-diversified portfolio
  • Minimum investment: €10
  • Investment fees: None for individual deals; administration fee of 0.5% on the savings plan
  • Secondary market: Yes
  • Auto-invest function: Yes
  • Collateral: German office buildings, supermarkets, land, hotels, residential buildings and vacation homes; Austrian apartments, residential buildings, office buildings and vacation homes; Spanish vacation homes (mainly on Mallorca)

Bergfuerst (Bergfürst) is one of the leading German real estate crowdfunding platforms. Since 2014, Bergfuerst has operated as a bank, having been granted a full bank license from German regulator Bafin (which is quite unusual for a start-up crowdfunding platform in Germany). This recognition and oversight from Bafin ensure that the platform is well run, as it is checked thoroughly by an independent authority.

The platform offers senior or mezzanine debt options which means if a project fails, Bergfuerst investors are one of the first to recoup the investment (which is not the case for most platforms). Most projects are located in Germany, but there are some deals in Spain as well (Mallorca – beloved by the Germans, in particular). The projects are funded fast, but you can check upfront what will be open soon not to miss any opportunity. The average project duration is between 2 and 3 years, but the platform says 75% of all deals are repaid on average 12 months earlier. You can also sell your investments before the end of the term via the vibrant secondary market – roughly 90% of sales offers find a buyer within a week, which means you can free your capital in normal market conditions relatively fast if you’re in need.

The platform also offers an auto-invest option/a savings plan (“Sparkplan”). You can dedicate a single payment or monthly contributions, which will be automatically (re-)invested in a diversified portfolio. The expected target return for the savings plan is 5.3% and the recommended term is up to 6.5 years.

Pros

Cons

Bulkestate

  • Launch date: 2016
  • Total capital invested: €16m+
  • Average annual interest rate: 14.72%
  • Investment option(s): Individual deals (loans for real estate development projects) and group buying deals
  • Minimum investment: €50
  • Investment fees: None
  • Secondary market: No
  • Auto-invest function: Yes
  • Collateral: Latvian residential buildings, apartments, cottage houses and land

Bulkestate is a platform focused on the Baltic real estate market. The platform issues loans to corporate borrowers (only real estate companies) and then offers these loans to investors in the marketplace. Bulkestate is best known for a very strict due diligence process in selecting which deals end up on the platform. This results in high-quality, although not a lot of deals.

Bulkestate also has a unique feature of “group buying deals” or “bulk deals”. The idea is that owners of apartment buildings are willing to offer a discount if they sell all apartments in the building at once. In this case, you buy the entire apartment and receive the full legal owner title.

One concern is liquidity and cash flow. Bulkestate does not offer a secondary market or any other option to withdraw funds before the end of the investment period. Both the principal and the interest rate are paid after the project has been finalized, meaning you’ll receive no monthly payments whatsoever. However, the average initial loan term is only 12 months.

Pros

Cons

Crowdestate

  • Launch date: 2014
  • Total capital invested: €97m+
  • Average annual interest rate: 13.72%
  • Investment option(s): Variety of equity- and debt-based real estate investments (incl. rental, development and speculative projects), business loans and personal loans
  • Minimum investment: €100
  • Investment fees: None in principle; a 2% fee for sales on the secondary market; a “success fee” charged if the investment performance exceeds the agreed hurdle rate
  • Secondary market: Yes
  • Auto-invest function: Yes
  • Collateral: Estonian private houses, apartments, residential buildings, commercial properties, supermarkets and land; Italian private houses, apartments and residential buildings, Romanian private houses, villas, apartments and residential buildings

Crowdestate is one of the most popular platforms for investing in European real estate. The projects are spread geographically throughout Europe (Italy, Romania, Estonia, Latvia, and Finland), include various property types (e.g. residential, retail, office and healthcare buildings) and even reach beyond real estate (business and personal lending). Therefore, the platform offers really great diversification opportunities.

Crowdestate has everything you would expect from a real estate crowdfunding investment platform – a large number of deals, high interest rates, auto-invest feature and a secondary market, and a long track record. It can be a good place for those who just started investing in crowdfunding and for those who like to keep it simple only using a single platform for their investments.

Pros

Cons

EstateGuru

  • Launch date: 2013
  • Total capital invested: €260m+
  • Average annual interest rate: 11.58%
  • Investment option(s): Individual deals (development, bridge and business loans)
  • Minimum investment: €50
  • Investment fees: None for investing; a 2% fee for sales on the secondary market
  • Secondary market: Yes
  • Auto-invest function: Yes
  • Collateral: Residential, commercial and agricultural land, industrial buildings, apartments and apartment buildings in Estonia, Latvia, Lithuania, Sweden and Portugal

EstateGuru is a traditional, all-around platform for property investments with solid interest rates and a large variety of pre-vetted deals. With over 63,000 investors and more than 1,800 funded loans, it is also by far the largest real estate crowdfunding platform in Europe. 

Additionally, EstateGuru’s user-friendly interfaces are something to like and appreciate. You can track your investments on any device, using clear, nice-looking dashboards. But it’s not only the face of it – the platform also offers useful analytical tools, such as the diversification score, which shows how well diversified your portfolio is across five key aspects (location, property value, loan purpose, loan type and loan amount).

Pros

Cons

EvoEstate

  • Launch date: 2019
  • Total capital invested: Not disclosed
  • Average annual interest rate: Up to 18%
  • Investment option(s): A variety of debt and equity options, depending on the loan originators’ offer. The three main deal categories are: rent (buy-to-let), fixed-interest (loans) and equity
  • Minimum investment: €50
  • Investment fees: None
  • Secondary market: Yes
  • Auto-invest function: Yes
  • Collateral: A wide variety of commercial and residential real estate in multiple countries, e.g. residential buildings in Estonia, apartments in Spain, apartment complex in Moldova

EvoEstate is an innovation in the real estate crowdfunding world. It is a first real estate crowdfunding aggregator, i.e. a website, which curates the best deals from many platforms (loan originators). Via a single account, you can invest in projects from, so far, 19 platforms and 15 countries, which allows for easy diversification. And it gets better – on EvoEstate you can find all investment types, from safe buy-to-let projects (3-6% of expected return plus capital appreciation) through fixed-interest loans (8-13% interest) to high-risk, high-reward investments – equity (potentially 14-30% annually).

Although the company is very young, it shows great potential for the future and is run by two young, but exceptionally bright guys, who already proved themselves in the FinTech start-up world. Also, they have their “skin in the game” – that means they invest private funds in many of the deals they put up on the platform  (they have a total of €173,000+ capital invested).

Three outstanding features of EvoEstate are worth pointing out:

  • All deals are available in English, which is not always the case for all platforms – for example, this is the place for non-German speakers to invest in Bergfuerst deals!
  • Their auto-invest function is very sophisticated as it enables you to create multiple auto investment strategies (e.g. you can set up dedicated strategies for each country, originator or type of deal individually).
  • It offers a (very active) secondary market. The key perk here is that you can buy or sell investments originating from platforms that don’t offer their own secondary markets.

Pros

Cons

Rendity

  • Launch date: 2015
  • Total capital invested: €43m+
  • Average annual interest rate: Up to 7%
  • Investment option(s): Rental deals and secured development loans; two investment products: Rendity Income (low risk, low return) and Rendity Growth (moderate risk and return)
  • Minimum investment: €500
  • Investment fees: None
  • Secondary market: No
  • Auto-invest function: No
  • Collateral: Austrian and German residential complexes, apartment buildings and family houses, including many (to-be) renovated historical buildings (in Vienna and Berlin in particular); co-working space and hotel in Vienna

Rendity is a Vienna-based platform, which offers a safe haven for your real estate crowdfunding investments. It offers two kinds of deals: “Rendity Income” focuses on rental projects, where you receive steady income (with quarterly income distributions). These are long-term projects up to 7 years, although you can exit your investment after 24 months. “Rendity Growth” includes development loans, which tend to be short-term deals (although not very short-term – typically between 18 and 30 months). They offer slightly higher interest rates (4-7% vs. 3-4% for Rendity Income) but you must be comfortable having the funds locked up for the entire period, as the principal is repaid at the end of the term.

Rendity offers a very straightforward and honest five-scale risk rating of each deal, although it lacks a secondary market as well as an auto-invest function. Overall, it is a good choice if you prefer safe investment options and exposure to established Austrian and German property companies.

Pros

Cons

Which Real Estate Crowdfunding Investment Platform in Europe is the Best?

At the end of the day, the choices you make should always come down to your personal preferences. If you’re a more risk-averse investor, safe options offered by Bergfuerst or Rendity should be definitely included in your portfolio. If you are hunting high returns, you can pick some more risky deals on Crowdestate of EstateGuru. If you’re considering buying an apartment, head straight to Bulkestate for some exceptional discounts. If you like to keep your options open and have broad diversification opportunities, EVOEstate will allow you to access deals from almost 20 European platforms through a single account. The recipe for success is simply to avoid guesswork and make an informed choice based on your preferences and a good knowledge of the, quite broad by now, market offer.

Bottom Line

The real estate crowdfunding investment sites in Europe connect investors with investment opportunities. Even though it allows investors to participate in investment deals that offer a competitive return, remember that you can lose your entire investment. Carefully research the real estate crowdfunding platform and individual projects before investing any money.

Methodology

When choosing the top real estate crowdfunding sites in Europe, we considered a variety of factors such as:

  • Number of investors
  • Minimum investment requirement
  • Historical annual returns
  • Diversification opportunities
  • Reinvestment opportunities
  • Educational and informational offerings
  • Platform fees
  • Total capital invested
  • Features (such as secondary market and automatic investing)
  • General transparency (the difficulty of finding who the owners are, how they make money on the platform(fees), terms & conditions and more)
  • Management team

We also make sure that the platform is legitimate and well respected by looking into the company’s online reputation (for example customer reviews, news, complaints, average monthly searches and social media).