European P2P real estate to compete with the rental market
Average yields in the continental European P2P real estate market reached 10% by 2024. The sector keeps pace with rental yields while offering easier access to income from a minimal investment.
The analysts from the Robocash platform have compared the returns from P2P Real Estate investments and direct real estate ownership. The research included 68 European continental platforms, with data gathered manually and provided by the author of the Spanish blog Todocrowdlending.
According to the results of the study, in the last four years (2021-2024) the average rate on the P2P real estate market has changed very little. “The main reasons for this should be considered the relative slowness of the construction and development processes and the general “conservativeness” of the European real estate market as such”. – the experts comment on the statistics.
At the same time, the return shows a tendency to slow growth, amounting to 9.33% in 2021 and 10.17% in 2024. Geographically, Switzerland, Germany and Austria are characterized by minimum profitability of 5-7%. In Southern and Eastern Europe, yields are on the rise, reaching 20% and even higher. “Apparently, additional drivers here are the higher level of volatility in the overall economic situation and the regional tourism & business potential.”
As in the P2P real estate sector, the yields on the rental housing market are also very “conservative”. Over the past four years, it has averaged 10.65%. “P2P is symbolically behind in this respect, but in the last two years this gap has leveled off”. – the analysts add.
The sector’s appeal is further enhanced by additional benefits. “The opportunity to generate income from minimal amounts, the absence of extra expenses (such as renovations), and no direct investment limitations – all this makes P2P real estate investments a compelling alternative to traditional rental housing.”
