Surely you have thought at some point: “I’d like to invest, but with how hard it is to save, I don’t want to take a wrong step.” In Spain, investing in real estate has traditionally been a safe option with minimal risk. In fact, the real estate sector is considered a safe haven for investment, as its evolution depends little on market fluctuations – and it has much less volatility. The downside is that investing in real estate is very costly. Or at least it was until the advent of real estate crowdfunding. Real estate crowdfunding has revolutionized how investments are made in the sector, allowing people like you to access real estate investment opportunities with a lower initial capital.
Maybe you already know what I’m talking about. In recent years, crowdfunding platforms have emerged in Spain, allowing many savers to pool their resources to collectively invest in large real estate projects. This means there is a reliable alternative to the costs and paperwork involved in buying an apartment, renovating it, and renting it out. It is known as real estate crowdfunding, and Urbanitae stands out as the leading platform by financing volume in Spain and ranks among the Top 5 in Europe.
Is Urbanitae trustworthy?
It’s normal to wonder where the catch is. However, the explanation is quite simple. On one side are solvent developers with a solid track record who, despite this, cannot obtain the necessary funding through traditional channels. On the other side 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. This is the strategy we follow at Urbanitae.
The most notable advantages are:
- Access to exclusive opportunities: Urbanitae provides investors with the opportunity to participate in high-quality real estate projects that might otherwise be inaccessible to individual investors.
- Portfolio diversification: Through the platform, investors can diversify their real estate investments, thus reducing risk by distributing their capital across multiple projects and locations.
- Transparency and control: Urbanitae offers investors detailed information on each project, as well as tools to monitor their investment performance in real time, providing a greater degree of transparency and control over their real estate assets.
Like other crowdfunding platforms, Urbanitae is regulated and supervised by the National Securities Market Commission (CNMV). From June 2019 to today, it has financed over 130 projects and raised more than 240 million euros through over 88,000 investments. It has worked with 65 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 across Spain.
Are there 'affected' by Urbanitae?
In the end, there is no better proof of Urbanitae’s business solidity than the results. Although the company was founded in 2017, it started operating with a CNMV license from June 2019. As a result, many of its first projects were affected to a greater or lesser extent by the pandemic. Even so, Urbanitae has already fully returned 36 projects. How did they fare?
In most cases, the annual return (IRR) obtained has exceeded forecasts. Despite the difficulties caused by the pandemic, the Ukraine war, or inflation, a real IRR of almost 16% has been achieved, compared to a target IRR of 12.9%. Thousands of investors have thus received their money with interest: over 36 million euros. Here you can find all our updated figures.
Check out Urbanitae’s reviews on Trustpilot and Google.
Why are returns so high at Urbanitae? Our Real Estate Investment Platform focuses primarily on new residential construction projects and the equity model, where investors become partners of the developer. While the typical return on housing is around 7%, in real estate development projects it is common to achieve a 15% return on the capital contributed. By becoming partners, that return is shared between investors and the developer. It’s not science fiction.
In 2023 Urbanitae financed 49 projects for nearly 120 million euros – almost double the turnover of 2022. If you still have doubts about how Urbanitae works, write to us at [email protected]. Or call +34 911 23 25 22: they will be happy to assist you.