Crowdfunding: an Innovation that Has Come to Stay

11 December 2017

The Housers platform allows people to invest in the real estate market with just 50 euros.

Crowdfunding has come to the Portuguese real estate market. Housers recently debuted in Portugal with a project in Campo de Ourique, which was funded in just 20 days.

With less than two years of existence, Housers, a Spanish fintech platform, has more than 70,000 registered users worldwide and plans to reach 11,000 in the Portuguese market by the end of 2018. The company has used its crowdfunding model to finance 200 properties valued at more than 33 million euros, and some 2.5 million euros in benefits and returns on equity have been distributed already.

João Távora, Housers’ CEO, states that the Portuguese crowdfunding market is still in its infancy, but believes it has enormous potential as an alternative to traditional forms of investment. “Simultaneously, we are witnessing growth in the real estate sector on the order of 20% per year (according to recent research by the Portuguese Association of Real Estate Developers and Investors – APPII), and a great part of the investments in the sector are being carried out by foreign investors. As such, I think the market is eminently prepared for a crowdfunding platform since it facilitates the entry of foreign investment, but also gives the Portuguese the opportunity to participate in the market, which will no longer be limited to wealthy investors,” Mr Távora explained.

The executive also believes that Portugal is experiencing one of the best moments of the last few years and that investing in the Portuguese real estate sector is undoubtedly an excellent opportunity. João Távora reveals that through Housers it is possible to save and invest in a fast-growing industry that offers more attractive returns and less risk compared to other financial instruments. “As for the risk issue, Housers’ team of experts deals with the whole bureaucratic process, selects and carefully studies the profitability of various investments and gives the investor the possibility to choose precisely the real estate where they would like to invest their savings, also allowing them to diversify their risk,” he says.

Regarding Housers’ first project in Portugal, the CEO stated that the operation was highly successful. The deal included a total investment of 193,000 euros and was financed by 453 investors, with investments ranging from a low of 50 euros to a high of 5,447 euros, with the total reached in just 20 days. “We are talking about small investors, mostly Spaniards and Italians, which shows that the Portuguese real estate market is very attractive to foreigners. We have also had some Portuguese investors who are starting to discover the platform,” he says.

Regarding the Portuguese real estate market, he believes that the attractiveness of the country to foreigners will continue to “heat up” the sector. Concerning crowdfunding, he believes that the model that has come to stay, because it is proliferating internationally, especially in markets as close as Spain or France. In the case of Portugal, it is already becoming a trend. “The emergence of Housers and other fintechs in the market demonstrates the potential of crowdfunding. And I believe it will continue to grow, offering investors an alternative investment that has very attractive returns,” he explained.

Housers gives small investors the possibility of investing in real estate in Spain, Italy, and now in Portugal, with a minimum of 50 euros.

Original Story: Jornal Econômico – Fernanda Pedro

Translation: Richard Turner