How to Invest in Real Estate Crowdfunding Platforms

22-year-old Nobita always dreamed of investing in real estate, but thought it was only for the wealthy. Then, he discovered crowdfunding. With just ₹50,000 saved, he invested in a Bangalore commercial project through a platform. Three years later, his investment grew by 12% annually, earning him ₹18,000 profit, without ever visiting the property!

Now, he is diversifying across 3 more projects. His secret? Starting small, researching platforms, and trusting the process. Like Nobita, you can also begin your real estate journey – no massive capital is needed.

Let’s learn more about crowdfunding in this blog.

What Is Crowdfunding?

Crowdfunding is a process where people raise money for their ideas, projects, or business ventures by collecting small amounts of funds from a large number of people online. This process uses social media and crowdfunding websites to find supporters instead of relying on traditional sources of funding.

Main Types of Crowdfunding:

• Donation-Based Crowdfunding: In this type, supporters donate money without expecting anything in return. This is mostly used for social or religious causes.
  
  
• Rewards-Based Crowdfunding: Here, supporters receive a product or service in return for their contribution. This is mostly used for creative projects or product launches.
  
  
• Equity-Based Crowdfunding: In this type, investors get shares or ownership in the company and become a part of the profits in the future.
  
  
• Debt-Based Crowdfunding (Peer-to-Peer Lending): In this, individuals lend money, which is returned over time with interest.

Example: Madhav’s Crowdfunding Campaign

Madhav, a young entrepreneur, wants to develop an eco-friendly water bottle. To do this, he started a rewards-based crowdfunding campaign to raise ₹5,00,000. He offers the following rewards to his supporters:

Through this campaign, Madhav successfully raised ₹6,00,000, which is more than his original target. With this money, he can produce and distribute the eco-friendly water bottles and deliver the promised rewards to his supporters.

What Is Real Estate Crowdfunding?

Real estate crowdfunding is a subtype of crowdfunding specifically focused on real estate projects. Real Estate Crowdfunding is a method where many small investors come together to invest their money in a real estate project. 

In this process, developers or property owners raise funds for their projects by taking small investments through online platforms. This allows investors to take part in the real estate market without needing a large amount of capital, and developers get the funding they need to complete their projects.

Let’s take an example:

Shailesh is a guy who wants to invest in real estate, but he does not have a large capital. He plans to invest ₹1,00,000. On a crowdfunding platform, he finds a commercial property project that needs a total of ₹1,00,00,000 in funding. In this project, 100 people invest ₹1,00,000 each — Shailesh is one of them. When the property earns rental income or is sold for a profit, all investors receive their share of the profit in proportion to their investment.

Here’s a simple table to explain:

How to Invest in Real Estate Crowdfunding Platforms in 2025

1. Understand Real Estate Crowdfunding

Real estate crowdfunding is a modern and accessible way to invest in real estate, especially for investors who want to start with a small amount. In this model, multiple investors pool their money together to invest in a single real estate project. This investment can be in residential, commercial, or mixed-use properties. Through this method, you can be part of the real estate world without actually buying or managing any property.

In India, platforms like PropertyShare and AssetMonk have made this model popular, where you can start investing with as little as ₹10,000.

Other platforms like WEALTHWISE by Indiassetz and AssetMonk also support this model.

Here’s an example to show how crowdfunding works:

With this model, you can start small, earn passive income, and diversify your portfolio without having to manage any property directly.

2. Choose the Right Platform

Without choosing the right platform in real estate crowdfunding, it can be difficult to reach your investment goals. In 2025, there are some leading platforms in India that offer transparency, low entry costs, and good returns.

Top Real Estate Crowdfunding Platforms – 2025

The best platform for you will depend on your budget, risk level, and investment goals.

Assetmonk and PropertyShare are good options for Indian investors – they are reliable and more accessible. On the other hand, global platforms like Fundrise are better for beginners because they allow you to start with a small amount.

3. Assess Investment Criteria

Before investing in real estate crowdfunding, it is important to understand some key criteria to make sure your investment is safe and profitable.

Understanding Investment Criteria

• Minimum Investment: In India, platforms like Assetmonk and Property Share start at ₹10,00,000, while some global platforms allow investments from as low as ₹5,000.
  
  
• Investor Accreditation: Some platforms are open to all investors, while others allow only accredited investors.
  
  
• Investment Focus: Different platforms specialise in different property types—residential, commercial, or mixed-use.
  
  
• Fees and Returns: Each platform has a different fee structure and projected returns. Some charge between 1%–4% fees, and annual returns can range from 8%–24%.

Comparative Table

To choose the right platform, always consider your budget, risk tolerance, and investment goals. Never forget to compare the fee structure and expected returns of each platform.

4. Diversify Your Portfolio

Diversification in real estate crowdfunding is a smart strategy that helps reduce your investment risk. It means spreading your money across different property types (like residential, commercial, industrial) and different cities. So, if returns are low in one sector or location, the other investments can balance out the loss.

In India, platforms like Assetmonk, Property Share, and SmartOwner offer investment options between ₹10,00,000 to ₹25,00,000. You can invest in multiple projects and diversify your portfolio.

Diversified Portfolio Example (₹10,00,000 Investment)

With this diversification, your total annual return can be ₹1,15,000, which is around 11.5%. By investing in different sectors and cities, you can protect your returns from market ups and downs.

Diversification helps you get stable income and long-term growth without depending on just one project or location.

5. Understand Risks and Liquidity

When investing in real estate crowdfunding, it is very important to understand the risks and liquidity involved.

Understanding Risks and Liquidity

• Illiquidity: Usually, your money is locked in for 3–7 years, which means you cannot easily withdraw your investment in between.
  
  
• Return Uncertainty: Projected returns are not guaranteed. Due to market conditions, project delays, or problems with the developer, actual returns may be lower.
  
  
• Platform Risk: In India, real estate crowdfunding is still new, and SEBI’s regulatory framework is still developing. So, it is very important to check the credibility of the platform before investing.
  
  
• Developer Risk: If the developer has a poor financial or legal background, the risk of project delays or failure increases.

Risk Profile Example (₹10,00,000 Investment)

You should choose your investment based on your financial goals and risk appetite.

Always check the platform’s track record, the developer’s credibility, and the project details carefully.

If you need liquidity (easy access to money), then options like REITs may be more suitable.

Before investing in real estate crowdfunding, doing thorough research and due diligence is very important.

7. Begin with a Small Investment

Starting with a small amount in real estate crowdfunding is a smart move, especially for new investors. It helps you understand how the platform works, how project updates are shared, and how the return system functions, without making a big financial commitment. In India, some platforms allow minimum investments between ₹50,000 to ₹1,00,000, which makes it more accessible for beginners.

Benefits of Starting with a Small Amount

• Risk Management: You limit your financial risk until you fully understand the platform and the market.
  
  
• Learning Curve: With a small investment, you get hands-on experience of how real estate crowdfunding works.
  
  
• Portfolio Diversification: You can spread your small investments across different projects and reduce your overall risk.

₹1,00,000 Investment Diversification Example

With this diversification, your overall annual return can be around ₹10,500, which is approximately 10.5%.

By starting with a small amount, you can keep your investment journey safe, smart, and well-informed.

Real Estate Crowdfunding Platforms in India

Real estate crowdfunding platforms in India offer investors the opportunity to invest in high-value properties through small investments. Below is the description of five major platforms:

1. Assetmonk

Assetmonk is a wealth-tech platform that provides investment opportunities in real estate through crowdfunding and fractional ownership. This platform mainly focuses on properties in Hyderabad, Bangalore, and Chennai. 

The minimum investment for investors starts from ₹10,00,000, and it offers an Internal Rate of Return (IRR) ranging from 14% to 21%. Assetmonk also provides investors with an interactive dashboard and complete investment management support.

2. Property Share

Property Share is India’s first and largest tech-enabled commercial property listing platform. This platform allows investors to invest in high-quality properties in major cities like Mumbai, Bangalore, and Delhi NCR. Property Share aims to democratise real estate investment, enabling regular investors to access institutional-grade analysis, property management, and liquidity.

3. Strata

Strata is a real estate wealth creation platform that uses data-driven insights and deep experience to offer safe and well-thought-out investment options to investors. Its goal is to help investors build a stable, long-term investment portfolio. Strata’s Assets Under Management (AUM) is ₹920 crores, and it offers an average IRR of 12% to 15%.

4. HBits

HBits is a fractional ownership platform whose aim is to make real estate a global market, making this profitable asset class accessible to common investors. HBits has an Asset Under Management of ₹3,000 crores and offers an average IRR of 13% to 18%.

5. RealX

RealX is a digital platform that facilitates fractional ownership and trading of properties by connecting property owners, developers, and investors. This platform provides investors with liquidity through secondary market transactions. RealX serves both individual investors and institutional players, thereby offering a transparent and efficient market for real estate transactions.

Through these platforms, Indian investors can now participate in high-value properties by making small investments, which adds diversity and stability to their investment portfolios.

Conclusion

Real estate crowdfunding has become a smart and accessible investment option in 2025, where small investors can also be part of big property projects. Platforms like Assetmonk, PropertyShare, and Fundrise have kept the minimum investment flexible between ₹10,000–₹10,00,000, giving everyone a chance. 

With diversification, the risk becomes lower, and by investing in commercial, residential, or industrial properties, stable returns can be earned. But there are risks too – like illiquidity (money getting locked), developer defaults, or market fluctuations. 

Real estate crowdfunding is a good way to create long-term wealth, but it needs both research and patience. If you want diversification and higher returns, this option can be better than traditional real estate. Invest wisely, make a plan according to your goals, and grow your portfolio with real estate crowdfunding in 2025!

FAQs

1. What is real estate crowdfunding?

Real estate crowdfunding allows multiple investors to pool small amounts of money to invest in large property projects. It provides access to real estate without requiring huge capital or direct ownership.

2. How much do I need to start investing?

In India, platforms like Assetmonk require ₹10,00,000+, while others like Fundrise allow investments as low as ₹5,000. Choose based on your budget and goals.

3. What returns can I expect?

Returns vary by project but typically range from 8%–15% annually. Commercial properties often offer higher returns than residential ones.

4. Is real estate crowdfunding safe?

It carries risks like project delays or market downturns. Always research the platform, developer, and project details before investing.

5. Can I withdraw my money anytime?

No, most crowdfunding investments have a lock-in period (3–7 years). REITs offer better liquidity, but traditional crowdfunding is illiquid.

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