GLOSSARY · BLOCKCHAIN & WEB3
Real Estate Crowdfunding
What real estate crowdfunding is: how licensed platforms work, what you actually buy, the real risks and how it differs from tokenization.
WHAT IS IT? · FOR DUMMIES
Real estate crowdfunding pools many small investors to fund a specific property project — usually lending to a developer — through a licensed platform. Low ticket, project-by-project choice and agreed returns: the most popular entry to property investing without buying property.
WHAT IS IT? · PRO
In Europe platforms operate under the European Crowdfunding Regulation (ECSPR), with authorisation and supervision: the standard product is development debt (a loan to the developer at an agreed rate), less often equity in the vehicle. The investor picks project by project — unlike a SOCIMI, where you buy a whole portfolio.
Its limits are well known: near-zero liquidity until maturity, concentrated developer risk and funding windows that fill up. Tokenization attacks exactly those limits (modern registry and transferability) and the two are converging — we compare them in depth in crowdfunding vs tokenization platform. If you want to run your own platform, that is the terrain of our tokenized real estate crowdfunding software.
01 / Key points
- Many investors fund one specific project via a licensed platform
- ECSPR: European authorisation, typically development debt
- Project-by-project choice, unlike a SOCIMI
- Limits: liquidity until maturity and developer risk — what tokenization attacks
02 / Advantages
- Low ticket and project choice
- Agreed returns on development debt
- Supervised European framework (ECSPR)
03 / Disadvantages
- Near-zero liquidity until maturity
- Concentrated developer risk per project
- No real secondary market on most platforms