For decades, participating in a real estate development project was an opportunity reserved for investment funds, family offices and high-net-worth individuals capable of committing hundreds of thousands of euros to a single transaction. However, the emergence of crowdfunding and alternative finance platforms is transforming the market, enabling retail investors to access opportunities that were traditionally beyond their reach.
With this objective, Fellow Funders, the Spanish alternative finance and investment platform, has launched a new investment round to finance Sant Joan Despí Phase II, a residential development comprising 23 new-build homes and parking spaces in one of the most sought-after areas of the Barcelona metropolitan region.
New-build property prices in the area currently range between €4,200 and €4,800 per square meter, supported by limited supply and sustained demand. The development also benefits from a prime location just seven minutes from central Barcelona.
The project represents a total investment of €5.4 million, of which €4.32 million will be contributed by investors through the platform. The remaining 20%, equivalent to €1.08 million, will be invested by the developer itself, SHEVAT, a company with more than 75 completed projects in the area and the developer behind Phase I of the same residential scheme.
“One of the most significant changes taking place in the market is that investors no longer need substantial wealth to access professional real estate investments,” explains Gonzalo Albero, CEO of Fellow Funders.
“Technology and regulation have democratized access to this type of asset while maintaining governance, control and oversight structures adapted to investor protection,” he adds.
An Alternative to Traditional Investment Products
At a time when many savers are looking for alternatives to bank deposits and the volatility of equity markets, real estate crowdfunding is increasingly being viewed as a way to diversify portfolios through investments linked to the real economy.
The Sant Joan Despí Phase II project offers an estimated annualized IRR of 15.02% and an estimated ROE of 34.29% over an investment horizon of approximately 24 months, positioning it as an attractive alternative to more traditional financial products with lower expected returns.
The projected return significantly exceeds current returns typically associated with bank deposits (around 2–3%), conservative investment funds (4–6%) and listed REITs (5–8%).
A Co-Investment Model That Aligns Interests
One of the key differentiators of the project is its co-investment structure. SHEVAT is investing its own capital in the development and participates under the same economic conditions as all other investors.
This approach is designed to align the interests of all parties involved, as the developer’s return is directly linked to the success of the project.
The model differs from structures where managers or intermediaries receive compensation regardless of project performance.
“The developer invests on exactly the same terms as the investors. If the project succeeds, everyone benefits. If it underperforms, everyone shares the downside. That fundamentally changes the dynamics compared with traditional participatory loans or investment funds where the manager earns fees and performance commissions regardless,” explains Albero.
“The alignment of incentives is complete: the developer has exactly the same interest as investors in ensuring the project is delivered on time and within budget.”
Access to a Market Once Reserved for Professionals
The development is located in Sant Joan Despí, just minutes from Barcelona, in an area where the supply of new housing remains limited despite strong residential demand.
Historically, participating in projects of this type required substantial capital commitments and direct access to developers or specialized investment vehicles.
Through platforms such as Fellow Funders, investors can participate with significantly lower investment tickets than those traditionally required, opening access to an asset class that until recently was largely restricted to institutional investors.
“In Spain, we are one of the leading platforms in a segment that combines rigorous project selection, genuine co-investment between platform and developer, and democratized access for retail investors,” says Albero.
“Our objective is not simply to close funding rounds. We aim to build a professional and sustainable alternative investment category in Spain.”
Regulation and Investor Protection
Fellow Funders operates as a Crowdfunding Service Provider authorized by the Spanish National Securities Market Commission (CNMV) under European Regulation EU 2020/1503.
The structure of the project includes a dedicated special-purpose vehicle (SPV), segregated custody of investor funds and oversight and auditing procedures designed to enhance transparency and investor protection.
With more than seven years of experience in the Spanish market, the company forms part of the Orbyn financial and real estate ecosystem and has channeled tens of millions of euros into business and real estate projects.
A New Investment Paradigm
The rise of platforms such as Fellow Funders reflects the profound transformation taking place in the real estate investment market.
A decade ago, participating in a residential development in the Barcelona area typically required an investment of around half a million euros, personal access to the developer and active involvement in managing the investment.
Today, regulated platforms allow private investors to access the same type of opportunity with investment amounts starting from just a few hundred euros, without needing direct relationships with developers or active asset management responsibilities.
“This is not only about democratizing access; it is about democratizing quality,” says Albero.
“Retail investors can now participate in transactions supported by the same level of due diligence, legal structuring and reporting standards as institutional funds. The real question is no longer whether this model is possible, but how many investors will realize that it exists and that it is fully regulated. The challenge ahead is investor education and trust-building. The platforms that are professionalizing the sector with rigor today will define this asset class in the years to come.”
The return figures mentioned are project estimates only and do not constitute a guarantee of future performance. As with any investment, there is a risk of partial or total loss of capital.
About Fellow Funders
Fellow Funders is a Spanish crowdfunding and alternative finance platform authorized and supervised by the CNMV under European Regulation EU 2020/1503. With more than seven years of experience, it connects individual investors with investment opportunities in businesses and real estate projects and forms part of the Orbyn ecosystem.
Its co-investment model and rigorous project selection process aim to democratize access to investment opportunities traditionally reserved for institutional investors and high-net-worth individuals.
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