Real estate crowdfunding has emerged as one of the major investment trends for 2025, becoming an alternative that allows investors to access the real estate market without the need to invest large amounts of capital. Alongside this model, and in response to the boom in real estate investment in Spain, the investment club has also positioned itself as an attractive option, offering the opportunity to participate in high-yield real estate projects. In this article, we explain what each of these models involves and their key differences.
What is real estate crowdfunding?
Real estate crowdfunding is a collective financing model that connects real estate project developers with retail investors. Through a real estate investment platform, they allow participation with low-ticket contributions in exchange for a share of the profits generated by the project. These platforms act as intermediaries between the developer and the investors but do not directly manage the project or its execution.
In the first months of 2025, the use of this type of real estate investment platform in Spain experienced strong growth, reaching over €70 million—more than double compared to the same period in 2024.
How does real estate crowdfunding work?
In this model, platforms manage a high volume of transactions, with fast turnover and moderate returns. The focus is on diversifying the offering, prioritizing the availability of multiple opportunities over more thorough supervision of the projects.
What is an investment club?
An investment club is an exclusive community of investors who join forces to participate in strategic real estate projects. This model is designed for more sophisticated investors, with a higher minimum ticket, which allows them to access more qualified and higher-yield opportunities.
How does an investment club work?
To join, investors must apply for access and be accepted, meeting the club’s requirements. Once inside, they benefit from close monitoring, regular reporting, and personalized service, allowing for greater control over their investments. Additionally, they enjoy networking opportunities, fostering valuable connections within the community.
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Differences between real estate crowdfunding and balize investment club
Real estate crowdfunding |
balize investment club |
|
Accessibility and investor profile |
It is accessible to investors with limited capital. Participation is possible with contributions starting from €50, although the most common minimum contributions range from €100 to €500. |
It is aimed at more sophisticated investors, with a minimum ticket of €10,000, as these are more select projects that require a larger investment. |
Product and returns |
The projects are large in scale but standard in type, which offers moderate returns, generally between 8% and 12% annually. |
The offering is more limited due to a highly selective screening process. |
Project involvement |
It functions as a loan to the developer, they are not involved in the development and have no active role in project management. They are also not liable for any issues that may arise with the developer. |
Each project is fully managed in-house, without intermediaries, covering everything from acquisition and renovation to sales and dividend distribution. |
Control over the investment |
Investors do not receive direct follow-up or have a dedicated point of contact. The platforms act as intermediaries, facilitating the loan but are not involved in project management. |
Investors receive monthly updates on their investments, including project progress and status. They also benefit from personalized service and a single point of contact throughout the entire process. |
Legal framework and regulation |
They must be regulated by the Spanish National Securities Market Commission (CNMV) due to the fact that they provide loans to developers. However, it is important to note that the CNMV does not supervise the specific real estate projects or their financial projections, nor does it guarantee project profitability or proper execution. |
Since it does not operate as a lending platform, balize is not subject to CNMV authorization. However, all investor protection requirements are met. This includes transparent information about the projects and a suitability check process, ensuring that investors receive all necessary details to make informed decisions. |
Similarities betweem real estate crowdfunding and balize investment club
Despite differences in their structure and operation, these models share several key elements that make them attractive to investors:
- Access to collective real estate projects: They allow investors to participate in larger-scale real estate projects, helping to democratize real estate investment in Spain. In addition, they offer the possibility of diversifying capital by participating in multiple real estate projects.
- Financing model: In both cases, the financing models are based on equity or debt.
- Digitalization: The investment process is simplified through a real estate investment platform, modernizing and streamlining the stages of the traditional process.
Conclusion
Both models are valuable tools to diversify capital and engage in real estate investment in Spain. However, they present key differences in structure, type of product, returns, and level of control over the investment. Real estate crowdfunding is an accessible option for those seeking diversification through low investment amounts, while balize investment club is defined by exclusive projects, higher returns, personalized service, and networking opportunities.
