Real estate investing used to be a game for the rich. If someone wanted to own a hotel, a big office building, or a shopping mall, it required substantial capital. Individuals could only grow their savings by buying a garage space or a family home, and even then the upfront costs were steep. Mortgages helped, but sums of 10,000, 20,000 euros and more stood as a barrier for many would-be investors.
In recent years, real estate investment has become more accessible, just like stock markets have democratized investing for everyday people. Today there are options starting from a few hundred euros, sometimes even below 100 euros, making real estate participation possible for a wider audience.
Socimis paved the way
Socimis, or listed real estate investment companies, focus on buying properties and collecting regular rents from tenants. Their tax structure is straightforward: they are listed on the stock exchange, they generally do not pay corporate tax, and profits are distributed to shareholders as dividends. This creates a mechanism where investors gain exposure to real estate markets through a familiar financial instrument.
In Spain, the two largest Socimis are Colonial and Merlin Properties. Colonial owns office spaces in prime city centers including Paris, Madrid, and Barcelona, while Merlin Properties diversified into offices, shopping centers, logistics warehouses, and even data centers. Both are traded on the Ibex-35, providing liquidity for individual investors who can participate with modest share purchases—often just a few euros per share. Investors may receive annual dividends around five percent of the stock price, depending on market conditions. Lar España ranks third in size and liquidity, with a focus on malls and retail parks and a dividend yield that has historically been higher than many peers.
The biggest drawback of investing in Socimis is that their share prices move with broader financial markets. This means the value of the investment is linked to stock market performance, not only the underlying property values. A downturn in markets can press share prices down, even if the real estate portfolio remains sound. The pandemic illustrated this dynamic. However, some analysts see opportunities when shares trade at a discount to the value of the assets they own. For example, Colonial’s real estate assets were valued much higher than its share price at certain times, creating potential value for patient investors.
Crowdfunding goes hand in hand with digitization
Crowdfunding arrived as a digital-first approach to real estate investing. Early platforms connected entrepreneurs with investors to fund specific projects such as land purchases or residential developments. Returns on these projects were variable and tied to the final profitability of the venture, often exceeding ten to fifteen percent on annualized investments that began at low thresholds of 250, 500, or 1,000 euros.
As platforms matured, lending models emerged. Investors could fund loans to developers to construct or acquire land, receiving fixed interest payments and the return of principal at maturity. Returns typically ranged from eight to twelve percent per year, depending on risk and structure.
Another evolution centered on rental assets. Groups of investors acquire commercial properties—stores, warehouses, or other facilities—and lease them to established brands. Revenue comes as regular income, usually every quarter, with a typical term of three to five years, after which the asset is expected to be sold and the invested capital returned. This model blends steady cash flow with capital recycling as the asset changes hands.
Housers led the way by introducing crowdfunding to Spain, followed by Urbanitae, which grew rapidly with support from venture capital funds and banking partners. As momentum built, other platforms joined the market, each offering unique projects and portfolios under varying risk and return profiles. Market participants include platforms backed by seasoned managers and advisory teams, expanding access to real estate investing for everyday investors and creating more diverse options beyond traditional ownership. [Citation: Market trend analyses, housing and crowdfunding reports]