Published on and written by Cyril Jarnias
In a context where real estate investment in Luxembourg is often perceived as a domain reserved for experts and large investors, real estate crowdfunding is emerging as an innovative and accessible solution for everyone. This trend, which is transforming how real estate projects are funded, allows individuals to invest small amounts of money in promising projects while potentially benefiting from attractive returns.
By combining the power of crowdfunding with the traditional advantages of real estate, real estate crowdfunding democratizes access to a sector previously considered inaccessible for many, while stimulating innovation and diversity in supported projects.
In this article, we will explore how this new approach is disrupting Luxembourg’s real estate norms, offering unique opportunities for both investors and developers.
Understanding Real Estate Crowdfunding in Luxembourg
Real estate crowdfunding is a participatory funding method that allows individuals to collectively invest in real estate projects without having to purchase property themselves or mobilize significant capital. Through this mechanism, each investor contributes a modest amount via a specialized online platform and thus becomes a stakeholder in the selected project.
Operating Principles:
- Real estate developers or property traders present their projects (new construction, renovation, change of use, etc.) on platforms.
- Individuals choose the projects they wish to participate in and typically invest through interest-bearing loans (crowdlending) or bonds.
- Upon project completion (resale, delivery, etc.), investors recover their capital plus agreed interest.
Types of Funded Projects:
- New housing construction
- Major or minor renovation of existing buildings
- Building transformation/extension
- Commercial development (offices, retail)
- Unit sales
| Project Type | Specific Examples |
|---|---|
| New construction | Student residences |
| Renovation | Transformation of an old building |
| Development | Creation of commercial spaces |
Main Platforms in Luxembourg:
BeeForDeal
Licensed platform allowing Luxembourg residents and cross-border workers to access local operations. Primarily offers real estate crowdlending for residential and commercial development.
Other recognized European platforms may also offer certain projects in Luxembourg through partnerships with local operators.
Local Regulations:
Activities are supervised by the CSSF (Commission de Surveillance du Secteur Financier) to ensure transparency and protect investors. Platforms must be licensed, subject to the AMF or equivalent regulator depending on their country of origin if operating in Luxembourg. Obligations exist regarding:
- Detailed pre-contractual information for each project
- Separate management of collected funds
- Prior risk assessment
Opportunities for Investors:
- Facilitated access to the real estate market without high entry barriers
- Possible diversification across multiple geographically varied operations/projects
- Attractive returns compared to traditional investments (often 7%–12% annual gross for short-term crowdlending)
Associated Risks:
- Main risk = partial or total loss of invested capital if the project fails (construction delays, developer default, etc.)
- Potential lack of liquidity: it’s not always possible to sell one’s claim before maturity
- Dependence on the seriousness and competence of the project sponsor/project
Key takeaway: High returns reflect a real level of risk; novice real estate investors are advised to diversify their contributions across multiple projects.
Recent Concrete Examples in Luxembourg:
| Project | Amount Raised | Duration | Nature |
|---|---|---|---|
| L’ICÔNE | €450,000 | 12 months | Residential development |
| CAMPUS SINEA | €500,000 | 24 months | Student residence |
| RESIDENCE DU CHATEAU | €400,000 | 12 months | Renovated apartment building |
Dozens of similar operations have been carried out in recent years, notably via BeeForDeal; they concretely illustrate how crowdfunding now enables Luxembourg individuals – starting from just a few hundred or thousand euros – to collectively invest in local real estate.
Good to know:
Real estate crowdfunding in Luxembourg is a participatory funding method that allows individuals to collectively invest in real estate projects, such as new building construction or property renovations. The main local platforms, such as PropCrowd and MyCapital, facilitate these investments while complying with regulations aimed at protecting investors, like CSSF supervision. Although this approach offers attractive potential returns, it also carries risks, including real estate market volatility. Successful projects often include condominium buildings or historical building rehabilitations, with returns potentially reaching 8 to 12% per year.
Reliable Crowdfunding Platforms in Luxembourg
Most Reliable and Popular Crowdfunding Platforms in Luxembourg
| Platform | Types of Supported Projects | Min. Investment | Average Return | Regulation/Reliability | Reviews & Reputation |
|---|---|---|---|---|---|
| Raizers | Development, renovation, life annuity, energy improvement, rental (all types of professional real estate) | €1,000 | 11% | AMF license (France), present in Europe including Luxembourg; high transparency; no fees for investors | Platform recognized for its rigor in project selection and quality monitoring. Very positive user feedback on ergonomics and clarity. |
| Homunity | New residential or rehabilitation, property trader operations | €1,000 | ~9% | Regulated supervision (France), strong European experience | Excellent reputation for strict project selection. Leading platform in France with growing Luxembourg presence. |
| La Première Brique | Small-scale accessible residential projects | From €1 | ~11% | Complies with French regulatory framework; active community | Appreciated for its accessibility to small budgets and transparency about risks. |
| Citesia | Property trader/developer operations up to €2M | €1,000 | ~10% | FPF monitoring (France), very low reported default rate | Detailed descriptions, rigorous delay management but few recent offers. |
Main Platform Characteristics
- Types of Real Estate Projects Offered:
- New construction
- Major renovation
- Energy improvement
- Life annuity real estate
- Furnished or unfurnished rental
- Investment Models:
- Simple bonds (loan bonds to project holding company)
- Unlisted shares in some cases (crowdequity)
- Observed Average Returns:
- Between 8% and 11% gross/year, depending on project risk
Major Advantages for Real Estate Investors
- Possible diversification starting from just a few hundred or thousand euros
- Access to returns higher than traditional investments (classic physical real estate, REITs, etc.)
- Fast digitalized process (registration, project selection, online payment)
- Regular monitoring via interactive dashboards
- Increased transparency through documents provided prior to funding
Functional Comparison Between Main Platforms
- Financial Accessibility
- La Première Brique: accessible from just a few euros.
- Raizers/Homunity/Citesia: minimum amount generally set around €1,000.
- Geographical Diversity
- Raizers offers broad European coverage including Luxembourg.
- Homunity & Citesia also occasionally offer projects outside France.
- Ease of Use
- Modern & educational interfaces among all cited leaders.
- Personalized dashboard summarizing return/performance/tax information.
Costs & Fees for Investors
No fees charged by Raizers or Homunity on the initial investment for investors.
Platforms earn revenue from the funded real estate developer.
However, be aware: local taxation applies to realized gains according to your tax residence!
User/Expert Reviews – Reputation & Regulation
- All cited platforms benefit from:
- Official license issued by a recognized European financial supervisor,
- Regular controls regarding their financial stability,
- Positive reviews highlighting their professionalism and proactive communication during potential issues or delays,
- User feedback emphasizing simplicity/peace of mind/intuitive use.
Regularly mentioned weaknesses:
- Some frequent repayment delays related to the tight real estate context since late 2023;
- Necessary strict selection—do not invest without prior personal analysis even through reputable platforms.
Quick visual summary:
> Players such as Raizers, Homunity, or Citesia stand out as reliable references for investing in real estate crowdfunding from Luxembourg—thanks to their proven track record, attractive returns (~8–11%), a solid regulatory framework, and a user experience praised by both beginners and experienced investors!
Good to know:
Three real estate crowdfunding platforms stand out in Luxembourg for their reliability: Crowdlending.lu, Anaxago, and Immovesting. Crowdlending.lu, regulated by the Commission de Surveillance Budgétaire, offers the possibility to fund residential projects with a low entry ticket, attracting beginner investors through an intuitive interface and competitive fees. Anaxago, well-established with a solid reputation in France and Luxembourg, offers a diversity of residential and commercial projects, appreciated for its responsive customer service and high-return projects. Immovesting is recognized for its transparency in the investment process and support for sustainable projects in the country, which reassures its users. Experts emphasize the importance of verifying the CMF regulation of these platforms to confirm their credibility. User reviews often praise the ease of use and quick investment returns, although they recommend prior risk analysis for each project to optimize success chances.
How to Effectively Invest in Luxembourg Real Estate Through Crowdfunding
Real estate crowdfunding involves collectively funding real estate projects via online platforms, enabling numerous investors to each contribute a modest amount to support the construction, renovation, or development of real estate properties. In Luxembourg, this model appeals through its accessibility and ability to mobilize local savings to energize the real estate market, previously dominated by traditional bank financing.
Advantages of Real Estate Crowdfunding in Luxembourg:
- Facilitated access to real estate investment starting from €1,000, or even less depending on platforms.
- High potential returns: between 8% and 12% gross per year on average.
- Possible portfolio diversification thanks to low entry ticket.
- No rental management or administrative constraints for individual investors.
- Increased transparency on projects through detailed information provided by platforms.
Associated Risks:
- Risk of capital loss if the project fails (example: developer bankruptcy).
- Illiquidity: funds blocked for the entire project duration (typically 6 to 36 months).
- Frequent delays in delivery or project repayment.
- Strong dependence on local and European regulatory developments.
| Advantages | Risks |
|---|---|
| Financial accessibility | Partial/total capital loss |
| Attractive return | Illiquidity |
| Simplified diversification | Delay/operational problem |
| Increased transparency | Regulatory dependence |
Current trends include rapid growth in amounts raised through Luxembourg real estate crowdfunding and the rising prominence of licensed local players. Investors today prefer diversification across multiple projects to limit their exposure to risks specific to each operation.
Main Active Platforms in Luxembourg:
- BeeForDeal: AMF-licensed platform specialized in Luxembourg and cross-border operations;
- BeeBonds: offers various residential and commercial projects with emphasis on transparency;
Other French or European platforms also accept Luxembourg residents.
Criteria for Choosing a Platform:
- Verify license with a recognized authority (CSSF, AMF, etc.)
- Analyze transparency on each project (accessible legal documents)
- Consult performance history/default rate
- Examine fees applied to investors
- Ensure responsive customer service
Steps to Properly Diversify Your Portfolio via Real Estate Crowdfunding:
- Select several reliable platforms (minimum 3 to 5)
- Invest in different types of real estate projects (residential/commercial/new/renovation)
- Split investments across at least 20–30 different operations
- Distribute investments according to different maturities/durations
Luxembourg regulations require that certain platforms be registered with local financial authorities like the CSSF or benefit from a European passport from another recognized regulator to ensure a protective framework for private investors.
Concrete example: Several investors who used BeeForDeal report having received their interest according to the initial schedule after collectively investing in a new residence near Kirchberg; they particularly appreciate the complete absence of fees as well as the regular monitoring provided throughout the construction.
To maximize success chances, it is recommended:
- To carefully read all contractual documents before each subscription,
- To use only non-essential amounts,
- To systematically use multiple channels/platforms,
to mitigate any unforeseen risk related either to markets or to the operators themselves.
Good to know:
Real estate crowdfunding in Luxembourg allows investing in local projects with relatively modest amounts while accessing a potentially lucrative market. Through platforms like Anaxago or Raizers, investors can participate in funding diversified real estate properties. However, it’s crucial to consider associated risks, such as total loss of invested capital or project delays. To choose the right platform, examine its track record, transparency of proposed projects, and fee structure. Diversification is key—ensure you spread your investments across multiple projects to minimize risks. The Luxembourg regulatory framework, although welcoming, imposes due diligence duties toward investors, adding a layer of security. Success examples include urban hotels rehabilitated through this funding mode that have generated attractive returns.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
