Affected by Urbanitae?

The reality of real estate crowdfunding


Surely you have thought at some point: "I'd like to invest, but, given how hard it is for me to save, I don't want to make a false step". In Spain, housing has traditionally been the natural way to invest without too much risk. In fact, the real estate sector is considered a safe haven for investment, given that its performance depends little on what happens in the markets - and it has much less volatility-. The downside is that investing in housing is very expensive. Or it was until the emergence of real estate crowdfunding.

You may already know what I am talking about. In recent years, platforms have emerged in Spain that bring together many savers and allow them, together, to invest in large real estate projects. In other words, there is a reliable alternative to the outlay and paperwork involved in buying a flat, renovating it and renting it out. It's called real estate crowdfunding, and Urbanitae is the leading platform for financing volume in Spain.

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Is Urbanitae trustworthy?

You may well wonder where the trick is. Actually, it's quite simple. On the one hand, there are creditworthy promoters, with a proven track record, who do not get the financing they need through traditional channels. On the other hand, there are investors who see profitable and reasonably secure investment opportunities in the real estate sector. Urbanitae uses technology to become the meeting point between the two.

Like other crowdfunding platforms, Urbanitae is regulated and supervised by the National Securities Market Commission (CNMV). From June 2019 to date, it has financed more than 80 projects and raised more than €115 million through more than 40,000 investments. It has worked with 50 developers and has active developments in 40 cities and nine autonomous communities. In total, it has promoted the development of more than 1,400 homes throughout Spain.

Are there 'affected' by Urbanitae?

In the end, there is no better proof of the strength of Urbanitae's business than its results. Although the company was created in 2017, it began trading with a CNMV licence in June 2019. As a result, many of their first projects were affected to a greater or lesser extent by the pandemic. Even so, Urbanitae has already repaid 19 projects in full. How did they go?

In most cases, the annualised return (IRR) achieved has exceeded expectations. Despite the difficulties caused by the pandemic, the war in Ukraine and inflation, an actual IRR of almost 17% was achieved, compared to a target IRR of 13.3%. More than 5,000 investors have thus received their money with interest: just over 16 million euros..

Take a look of thereviews of Urbanitae in Trustpilot and Google.

And why are the returns so high? Urbanitae is focused on new residential construction and equity projects, in which investors become partners of the developer.The profitability of housing is around 7%, but in real estate development it is common to achieve a return of 15% on the capital contributed. When the company enters into partnership, this return is shared between investors and developer. This is not science fiction.

In 2022, Urbanitae financed 32 projects for an amount close to €65 million - more than double the turnover of 2021. So far in 2023 alone, it has financed 10 projects, raising more than €18 million through more than 6,000 investments. If you still have doubts about how Urbanitae works, write to us at [email protected], or call to 911 23 25 22: will be happy to help you.

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