How to Invest in Real Estate Crowdfunding in France?
Updated on 30 July 2026
Investing in real estate crowdfunding in France means choosing a platform authorised as a PSFP (Prestataire de Services de Financement Participatif, France's licensed crowdfunding-platform status under EU Regulation 2020/1503), selecting a project (property development, renovation or property-trading deals), then lending a sum from a few hundred euros in exchange for interest paid over a term of 12 to 36 months.
- The average gross return reached 11.0% in 2025, but around one project in two is now facing delays or formal insolvency proceedings.
- Interest is taxed under the flat tax (PFU) of 31.4% (including 18.6% in prélèvements sociaux, France's social-security contributions), or, by election, under the progressive income-tax scale.
- Unlike SCPI (sociétés civiles de placement immobilier, France's non-traded real-estate investment vehicles; average return of 4.92% in 2025), real estate crowdfunding finances short-term deals, typically between 12 and 36 months.
- Two long-standing platforms, Koregraf and WeShareBonds, stopped operating in 2025, a sign of the due diligence needed before investing.
How does real estate crowdfunding work?
Crowdfunding is a financing solution that connects project owners with investors, mostly individuals, to raise funds from a broad public.
Real estate crowdfunding is therefore a participative investment solution focused on property. Through an online platform, investors lend small amounts to different real-estate projects in exchange for returns paid as interest, against a risk of capital loss. This financing often takes the form of a bond loan or a subscription of securities.
Real estate crowdfunding lets you invest in several types of property projects:
- The property development model, where lenders finance property-development companies that build real-estate assets (housing, offices, retail units, etc.) by acquiring the land first, then sell it on at a profit.
- The renovation of existing buildings or properties.
- The property-trading deals, which involve buying and reselling properties.
What are the risks of real estate crowdfunding?
The main risk of real estate crowdfunding is the total or partial loss of the capital invested, plus a liquidity risk if the funded project runs late. This risk is not theoretical: according to the Forvis Mazars x France FinTech 2025 barometer, around one property project in two currently faces significant difficulties (delays or formal insolvency proceedings).
The risk of total or partial capital loss can stem from a project being abandoned, for example if the project sponsor goes bankrupt. Since 2023, the sector has been going through a structural crisis: between 8% and 10% of funded projects are running less than six months late, 25% to 30% are running more than six months late, and 20% to 25% are subject to formal insolvency proceedings (Forvis Mazars x France FinTech 2025 barometer, March 2026). Always check the default statistics published by each platform before investing.
The second major risk is that of illiquidity: your investment horizon can be extended, more or less significantly, if the project runs late, with no guarantee of recovering the capital or the interest. Always build a safety margin into your investment horizon.
What are the advantages of real estate crowdfunding?
Very popular in recent years, real estate crowdfunding indeed offers many advantages:
- One of the main ones is the potential return. The average gross return stood at 11.0% in 2025 (versus 10.6% in 2024), driven by a higher risk premium in a tight market (Forvis Mazars x France FinTech barometer). This return remains gross, not guaranteed, and comes with a significant risk of capital loss (see "What are the risks of real estate crowdfunding?").
- This type of investment is also often associated with a short commitment period (2 to 3 years maximum).
- Crowdfunding also lets you invest in property with a low entry ticket and delegated management. Unlike buying a property to let, funding a participative property loan is very accessible and requires no involvement in managing the asset (renovation work, tenant management, etc.), which is entirely delegated.
SCPI vs real estate crowdfunding
Although similar in many respects (entry ticket, tax treatment, etc.), investments in real estate crowdfunding differ from those in SCPI on several points. Here is an overview of the main differences between these two pierre-papier solutions (France's term for indirect real-estate investments such as SCPI), alongside listed real-estate companies (SIIC), France's listed real-estate investment company status.
- The nature of the investment: investing in SCPI means buying units in a company that owns properties for rent (offices, retail, etc.), where the income comes from rents paid. Real estate crowdfunding, on the other hand, consists of financing short-term property projects in exchange for interest payments.
- Returns: in 2025, the average SCPI distribution rate stood at 4.92% (ASPIM), while real estate crowdfunding posted an average gross return of 11.0% the same year, rising steadily since 2022 (Forvis Mazars x France FinTech barometer).
- Investment horizon: real estate crowdfunding is a short-term investment (12 to 36 months on average), while investing in SCPI is designed for the long term (the recommended holding period is at least several years).
Know the platforms for investing in crowdfunding
As real estate crowdfunding has become a fashionable investment, many platforms have gradually emerged in recent years. Among them are several operators authorised as PSFP under EU Regulation 2020/1503, whose list is available on the AMF website. The sector has seen several platform closures in recent years; Koregraf and WeShareBonds, for example, stopped operating in 2025, which underlines the importance of choosing your platform carefully (Forvis Mazars x France FinTech barometer).
Given the diversity of offers on the market, it is essential to do your research in detail on the different platforms and their track record (shareholders, past performance, financial strength, interest rates offered, project types, default rates, project duration, etc.) and to compare offers. Beware the yield trap, though. Keep in mind that not every strategy suits every profile.
What is the tax treatment of real estate crowdfunding?
Income from real estate crowdfunding is subject to specific tax rules. It can be taxed in two ways:
- Under the flat tax (PFU) of 31.4% (12.8% income tax and 18.6% prélèvements sociaux since 1 January 2026, service-public.gouv.fr);
- Under the progressive income-tax scale, if you consider that more advantageous.
Note also that losses can be offset against future gains, which further reduces the tax due.
Rates and terms of real estate crowdfunding investments
On average, real estate crowdfunding investments are commitments of 12 to 36 months, for an average gross return of 11.0% in 2025 (Forvis Mazars x France FinTech barometer). The average time it takes projects to reach their funding target has also lengthened, from 6 days in 2024 to 20 days in 2025, a sign of increased investor selectivity amid the sector's difficulties.
Goals
A diversification tool to use with caution
Real estate crowdfunding can be a diversification tool for your portfolio, with an accessible entry ticket. However, it comes with a risk of capital loss and illiquidity that should be weighed against your personal financial situation, especially as the sector is going through a period of increased selectivity. To make a success of your investment, be careful about the platforms you use, spread your money across several projects, and make sure your strategy matches your long-term horizon. For an overview of property investment solutions that do not require a direct purchase, see our guide to investing in real estate. Once invested, tools like Finary let you track this type of investment alongside the rest of your wealth.
Sources
Forvis Mazars x France FinTech, Barometer of Crowdfunding in France 2025, March 2026
ASPIM, Fundraising and Performance of Retail Property Funds, Key SCPI Indicators 2025, 15 May 2026
AMF, White List of Crowdfunding Service Providers (PSFP)
Service-public.gouv.fr, The Flat Tax (PFU) in 2026
Regulatory disclaimers: Marketing communication. Investing carries a risk of partial or total capital loss. Past performance is not a reliable indicator of future performance. This article is provided for information and educational purposes only; it does not constitute personalised investment advice, a buy or sell recommendation, or tax advice. This investment carries a liquidity risk (resale not guaranteed, long horizon) and a risk of capital loss. Income and valuations are not guaranteed. Before investing, read the Key Information Document (KID) and, where relevant, consult an authorised adviser. Finary SAS, an investment firm authorised by the ACPR (no. 19283), member of AMAFI. Insurance broker registered with ORIAS (no. 21001279), member of the CNCGP (association approved by the AMF). Crypto-Asset Service Provider (CASP) authorised by the AMF under the MiCA regime, references no. A2026-026 and no. N2026-008.
