Real Estate Equity Crowdfunding Is Growing by 28% in Italy

In Italy, annual collections through equity crowdfunding for real estate projects reached 56.42 million euros between July 2022 and June 2023 (+28%): this is the data that emerges from the Observatory that compiled the report on Crowdinvesting 2023, according to which the Real Estate crowdfunding sector continued to be particularly lively in Italy.

In the real estate crowdfunding sector, which allows private individuals to invest in real estate development projects usually reserved for professionals, our country stands out, in terms of profitability , for a gross profitability of 8%, up compared to 2022.

In this context, the Spanish real estate crowdfunding platform Urbanitae , which recently entered the Italian market, has identified four reasons why one should consider starting to invest in real estate.

Real estate equity crowdfunding: Stability and tangibility

Real estate is a tangible asset, physical goods to support one’s investment. Unlike other types of financial assets, which can fluctuate rapidly in value, real estate tends to be stable over time. Additionally, the demand for housing will always be there, providing a solid foundation for long-term growth and stability.

Generate Passive Income

One of the key benefits of investing in real estate is the ability to generate passive rental income. When you own a rental property, you can receive a steady stream of monthly income that can help cover the expenses of the property and provide additional income. This cash flow can be especially beneficial during times of economic uncertainty, as it provides a stable source of income regardless of what is happening in the financial markets.

Potential for Appreciation in Value

While real estate tends to be less volatile than other asset classes, it can increase in value over time. This means that your investment could be worth more in the future than you paid for it initially. This appreciation in value can positively impact your long-term earnings and provide an additional source of income should you decide to sell the property in the future.

Diversification of Portfolio

Investing in real estate offers the opportunity to diversify your investment portfolio. By adding real estate assets to your portfolio, you can reduce risk by not being solely dependent on one type of investment. This approach is especially important during times of market volatility, as having a diversified portfolio can help protect against losses.

“Real estate crowdfunding, in particular equity crowdfunding, which represents over 60% of Urbanitae’s activity, allows any saver to invest in real estate development, an activity that normally offers average annual returns of around 15%”, comments Carlo Magnoni, Head of Urbanitae in Italy.

“To date, Urbanitae has achieved an average annual return of more than 15% net of investor fees and expenses on more than 30 returned projects. Furthermore, thanks to our limited entry level, investors can diversify investments across different real estate projects, thus reducing the risk of concentrating their savings in a single property.”

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First published in LA STAMPA. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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