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.
In Latin America each country regulates it differently, with investor caps that Europe does not have: we compare them in real estate crowdfunding in Latin America.
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