Published on and written by Cyril Jarnias
In Switzerland, while the real estate market continues to demonstrate remarkable stability, crowdfunding is emerging as an innovative and accessible solution for diversifying investment options. Through this method, investors—whether experienced or novice—can now participate in large-scale real estate projects with relatively modest starting capital.
In this context, understanding how to leverage this rapidly expanding phenomenon becomes crucial for anyone looking to maximize returns while mitigating risks associated with the traditional market. Dive into this article and discover how crowdfunding can transform your approach to Swiss real estate, through proven strategies and expert advice.
Understanding the Use of Crowdfunding in Swiss Real Estate
Real estate crowdfunding, or participatory real estate financing, involves pooling funds from multiple investors through online platforms to finance various types of real estate projects: new construction, building renovations, or acquisition of existing properties. This method provides access to the Swiss real estate market with a much lower entry threshold than traditional investment, sometimes starting as low as CHF 25,000.
Specific Operation in Switzerland
- Investors select a project on a platform and invest collectively.
- Two main existing models:
- Crowdlending: lending to developers to finance construction; repayment after unit sales (average duration: 24 months).
- Equity crowdfunding: direct participation in the project’s capital.
- Monitoring and management are entirely online.
Commonly Used Platforms
| Platform | Specific Features |
|---|---|
| Foxstone | Residential/mixed projects |
| Imvesters | Geographic diversification |
| myBrick | Accessibility from CHF 25,000 |
Benefits for Investors
- Easier access to real estate with limited funds
- Portfolio diversification
- Potentially attractive returns
- Democratization of real estate investment
- Transparency and digitalized tracking
Drawbacks for Investors
- Risk of partial or total loss of invested capital
- Often limited liquidity (investment locked for several years)
- Dependence on project/developer success
- Non-guaranteed returns
Benefits for Swiss Real Estate Developers
- Quick access to additional equity without relying solely on banks
- Increased visibility among a community of private investors
- Administrative simplification through specialized platforms
Drawbacks for Swiss Real Estate Developers
- Process sometimes longer than direct bank financing
- Obligation to make the project attractive and transparent
- Increased communication pressure toward multiple investors
Specific Regulatory Aspects in Switzerland
FINMA (Swiss Financial Market Supervisory Authority) regulates the sector. Main requirements:
- Requirement for certain platforms to obtain authorization if they temporarily hold collected funds.
- Legal limits related to the maximum number of investors per project (in some cases).
- Strict compliance with anti-money laundering laws.
- Transparent communication about inherent risks.
Concrete Examples and Recent Statistics
Some emblematic projects funded through crowdfunding:
| Project | Location | Type |
|---|---|---|
| “Les Jardins” Residence | Geneva | Residential development |
| Rental Building Renovation | Lausanne | Renovation |
Statistics illustrating growth:
- In French-speaking Switzerland, several tens of millions CHF were raised via crowdfunding between 2022 and 2024.
- The average annual number of funded projects has doubled over the past two years according to various leading platforms.
Current Trends & Potential Future
Key forecast points:
- Continued growth expected due to digital financial democratization.
- Gradual expansion toward commercial or sustainable/green energy real estate via crowdfunding.
- Likely strengthening of Swiss legal framework to further guarantee investor protection while supporting innovation in this dynamic sector.
The Swiss market is moving toward increasing professionalization with particular interest in participatory financing as a complementary alternative to traditional banking channels.
Good to Know:
Real estate crowdfunding in Switzerland allows investors to collectively fund real estate projects through platforms like Crowdhouse and Foxstone, which are the most used in the country. This method offers investors the opportunity to diversify their portfolio with relatively low entry thresholds, while developers access funds without going through traditional financial institutions. However, risks include Swiss regulatory complexity and the thorough due diligence required to evaluate projects. For example, the redevelopment project of the former Hotel Eden in Lugano was successfully funded through crowdfunding. In 2022, the volume of real estate crowdfunding in Switzerland experienced 37% growth, indicating increasing popularity. Nevertheless, the future of this method will largely depend on regulatory evolution and platform adaptation to technological innovations promising even more transparency and efficiency, according to fintech experts.
The Benefits of Participatory Investment for the Swiss Real Estate Market
Participatory investment in the Swiss real estate market offers several major advantages:
- Increased Accessibility for Individual Investors
Crowdfunding allows individuals to invest in real estate with amounts significantly lower than traditionally required. It’s now possible to become co-owner of a Swiss property with an investment of CHF 20,000 to CHF 25,000, compared to substantially higher amounts for a classic purchase. This democratization opens the market to more investors who wouldn’t otherwise have access to property ownership or rental yields. - Diversification and Risk Reduction
Through participatory financing, it’s possible to spread investments across multiple real estate projects rather than concentrating all capital on a single acquisition. This diversification decreases exposure to risk related to market fluctuations or specific building issues.
| Advantage | Explanation |
|---|---|
| Accessibility | Investment from CHF 20,000–25,000 |
| Diversification | Distribution across multiple properties |
| Risk Reduction | Risk pooling and dilution across projects |
- Accelerated Real Estate Project Implementation
Crowdfunding facilitates rapid collection of funds needed to launch or complete real estate projects, enabling faster realization than traditional financing. Project initiators can gather capital from a broad and engaged community, reducing their dependence on banks. - Enhanced Transparency
Specialized platforms regularly disseminate detailed information about each project: financial situation, expected returns, construction progress… This offers better visibility for investors who can precisely track where their money goes and how their investment evolves.
Crowdinvesting offers a simple and transparent model: acquisition through co-ownership with possible land registry registration, permanent access to financial data, and regular monitoring through specialized platforms.
- Stimulation of Innovation in the Real Estate Sector
By multiplying funding sources and methods, crowdfunding encourages the creation of new business models (co-living, themed residences…) as well as experimentation around sustainable development or new technologies applied to building. - Strengthened Local Community Involvement
The collective dimension often fosters direct or indirect involvement of local residents: some projects explicitly solicit local financial participation so those living in the area also directly benefit from real estate success. This can generate greater social acceptance around the concerned project.
Summary Checklist:
- Facilitated market entry
- Fractional investment possibilities
- Effective risk distribution
- Simplified access through digital platforms
- Enhanced transparency via frequent reporting
- Accelerated collection favoring rapid execution
- Active promotion of innovative solutions (ecology, shared housing…)
- Local citizen engagement
Thus, participatory financing not only helps democratize investment but also sustainably energizes the Swiss real estate sector while promoting transparency and innovation.
Good to Know:
Participatory investment is revolutionizing the Swiss real estate market by making this sector more accessible to individual investors, allowing them to enter the real estate market without requiring substantial capital. Through risk diversification, investors can spread their funds across multiple projects, thereby reducing the potential impact of a single project’s failure. Furthermore, this financing mode accelerates real estate project implementation by facilitating access to necessary funds. Crowdfunding also strengthens project transparency by requiring publication of detailed investment information, establishing a climate of trust. It stimulates innovation by attracting capital toward novel projects, potentially with a focus on sustainable development. Local communities, often participating in these financings, feel more involved in projects affecting their daily environment, thus fostering more coherent and socially integrated development.
Choosing Reliable Crowdfunding Platforms in Switzerland
Main criteria for choosing a reliable crowdfunding platform in Switzerland:
- User reviews and reputation: Consult feedback, evaluations, and testimonials about reliability, customer service, and ease of use.
- Financial transparency: Verify if the platform publishes its key figures (amounts raised, success/default rates, fees), its banking partners, and its fund management policy.
- Number of successful projects: Consider the total volume of successfully funded projects as well as their sector diversity.
- Longevity and experience: Platforms established for several years generally inspire more confidence.
- Applied fees: Examine commissions charged on collected or invested amounts.
- Regulatory framework: Ensure the platform complies with applicable local or European standards.
Comparison of Main Swiss Platforms (Real Estate)
| Platform | Type | Strengths | Success/Default Rate | Distinctive Features |
| Raizers | Real Estate & SME Crowdfunding | European presence, rigorous selection | Low default rate | Investment from CHF 1,000; thorough dossier analysis; European PSP approval |
| SwissLending | Real Estate Crowdlending | Swiss specialist; transparency on each project | Data not public | Primarily Swiss residential financing; tickets from CHF 1,000 |
| Crowdhouse | Direct Real Estate Co-investment | Access to Swiss rental real estate | Not disclosed | Direct participation in Swiss buildings from approx. CHF 25,000 |
Tips for Verifying Platform Credibility
- Search for registration with a local or European regulator (PSP approval…).
- Check the website’s age, total funded volume, and public portfolio details (completed projects/returns).
- Carefully read general terms especially regarding risk/default/delay management.
- Prefer platforms regularly publishing detailed statistics (rates by segment, potential losses).
- Request direct contact with an advisor before any significant commitment.
Precautions to Avoid Potential Risks
- Never invest more than a reasonable portion of personal wealth;
- Diversify across multiple projects/platforms;
- Personally analyze each proposed project (especially location in real estate);
- Be wary of unrealistic promises or abnormally high returns;
- Stay regularly informed about legal developments in the sector.
Local Regulation Governing Real Estate Crowdfunding in Switzerland
Switzerland doesn’t yet have a regulatory framework as strict as that established by the European Union with its PSP Regulation. Therefore, there’s no mandatory dedicated approval for Swiss platforms. However:
Serious actors ensure general compliance with Swiss banking/financial law as well as increased transparency toward investors.
Swiss investors are recommended:
- To prefer either a platform domiciled in a country with official approval,
- Or those voluntarily implementing strict internal governance
- And that publish their main financial indicators.
Thus, choosing your platform well involves both technical analysis and constant vigilance regarding the still evolving legal context.
Good to Know:
To choose a reliable real estate crowdfunding platform in Switzerland, it’s crucial to examine satisfied user reviews and verify the platform’s financial transparency. Raizers is renowned for its due diligence rigor and transparency, while SwissLending stands out for its high project success rate, and Crowdhouse is appreciated for its user-friendliness and co-investment model. Compare these platforms’ reputations, their history of successful projects, and user feedback to assess their credibility. Also verify registration and regulation by Swiss authorities such as FINMA, ensuring legal oversight of practices. To minimize potential risks, diversify your investments and carefully read platform general terms. Actively seeking information and exercising due diligence ensures wise participation in Swiss real estate crowdfunding.
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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.
