Investment in real estate: how to make a profit and the ways to go about it

Wed Dec 10, 2025

Real estate has long been regarded as a “safe classic” in the financial world. From rental apartments to development projects or real estate crowdfunding, property has earned a reputation for stability and profit potential. However, today’s real estate market looks very different from what it was 20 years ago, and modern investors now have access to far more ways to enter the sector — often without needing hundreds of thousands of euros.

If you want to understand how to earn from real estate, what returns are possible, and what you should know before getting started, you’re in exactly the right place.



Why are real estate investments so popular?



In short: because they combine security with growth potential.



Real estate has weathered every financial crisis, endured inflation, and continues to benefit from consistent demand for both residential and commercial space. In general, people perceive property as a “real asset,” something tangible with intrinsic value.



However, this does not mean that every property investment is automatically profitable. Analysis, strategy, and market understanding are essential. And in 2025, investment methods extend far beyond the traditional “buy an apartment and rent it out.”



How profitable is real estate investing?



Returns vary significantly depending on the type of property, location, demand, and strategy. Generally:



▸ Residential rentals: 47% annually

Higher in major cities or university areas, lower in quieter zones.



▸ Commercial rentals: 712% annually

Higher profit potential but greater risk and possible vacancy periods.



▸ Flipping (buy low, renovate, sell): 10–30% per project

Highly profitable depending on purchase price, renovation quality, and sale speed.



▸ Real estate crowdfunding / crowdlending: 814% annually

Ideal for those wanting exposure to real estate without buying an entire property.



On platforms like Balkanika, real estate projects are accessible from 50 euros, a major advantage compared with traditional property investing.



Explore projects available for small investment amounts:

https://balkanika.finance/en/invest



How to invest in real estate (traditional and modern methods)



In 2025, you have at least six main options, each with advantages and specifics.



1. Buying an apartment for long-term rental



Advantages:




  • monthly passive income;

  • tangible asset;

  • long-term appreciation;

  • stability.



Disadvantages:




  • high initial investment;

  • periods without tenants;

  • maintenance, repairs, taxes;

  • moderate returns.



2. Short-term rentals



Advantages:




  • higher returns than traditional rental;

  • flexibility.



Disadvantages:




  • high time and management effort;

  • in some areas, strict regulations;

  • seasonality.



3. Investing in commercial property



Advantages:




  • higher returns;

  • long-term lease contracts.



Disadvantages:




  • increased risk during economic downturns;

  • large capital requirements;

  • more volatile market.



4. Real estate development



Advantages:




  • highest profit potential;

  • participation in large-scale projects.



Disadvantages:




  • high risk;

  • long-term capital lock-in.



5. Real estate crowdfunding and crowdlending



The most accessible and modern method. You invest small amounts in real property projects.

Platforms like Balkanika allow investments starting from 50 euros, without purchasing a full property.



Advantages:




  • low entry threshold;

  • access to major projects;

  • attractive returns;

  • risk distributed among many investors;

  • easy diversification (5–10 projects at once).



Disadvantages:




  • returns are not guaranteed;

  • depend on the developer’s repayment capability.



Crowdlending is preferred by investors seeking a balance between good returns, moderate risk, and accessibility.



Create a free account to explore projects:

https://balkanika.finance/en/signup



6. REITs (Real Estate Investment Trusts)



Advantages:




  • instant diversification;

  • accessibility;

  • high liquidity.



Disadvantages:




  • price fluctuations similar to stocks;

  • no direct asset control.



Essential considerations before investing in real estate



Capital requirements differ dramatically

Buying an apartment: tens of thousands of euros.

Real estate crowdlending: 50 euros.

A major difference.



Real estate is harder to liquidate

An apartment can’t be sold in two days.

Crowdlending is far more flexible.



Profitability depends on location

Not every property generates returns.

Professionally evaluated projects provide a clear advantage.



Diversification is essential

One property = high risk.

10 small projects = controlled risk.



Real estate can be active or passive

— traditional apartments = work

— crowdlending = fully passive, online



Who is real estate investing suitable for?



Ideal for those who want:




  • stability;

  • passive income;

  • a tangible asset;

  • a balanced risk-return profile;

  • investments with real, physical value.



For investors seeking real estate exposure without operational burdens, crowdfunding and crowdlending are the best fit.



Conclusion



Real estate remains one of the most solid and attractive investment options — but the way we invest has changed fundamentally. You no longer need to buy a full apartment, search for tenants, or handle repairs.

Today, you can invest in real estate projects from as little as 50 euros through modern platforms like Balkanika, building a diversified, efficient, and accessible portfolio.



Create a free account:

https://balkanika.finance/en/signup



Invest in real estate projects from 50 euros:

(https://balkanika.finance/en/invest