Algarve University accommodation crisis – private sector steps in
The crowdfunding platform, Housers, is offering Portuguese investors the opportunity to fund the development of a new Algarve University residence.
A two-story building in the centre of Faro is to be converted to house 59 students.
With the objective of raising €550,000 through crowdfunding, the deal is to grant a loan to a real estate developer for the purchase of a 521m2 building to be converted into accommodation for 23 single and shared rooms as well as study rooms, a lounge, a library, a pool and a gym.
This is a “Fixed Rate Lease” opportunity, and investors will receive a monthly interest rate from month one. The total expected profitability is 25% in 60 months, corresponding to an annual rate of 5%.
According to João Távora, responsible for the international markets of the Spanish company, “this project represents a double debut for Housers in Portugal: it is not only the first time we have financed a student residence as it is the first time we have launched a project in the Algarve Since our launch in October 2017. The loan has had a very positive acceptance and within 48 hours after the project was launched, more than €56,000 had been raised, corresponding to 10% of the required financing.”
Housers is a real estate crowdfunding platform that offers the possibility for anyone to invest in real estate projects from €50.
In Portugal since October 2017, Housers already has raised about €4 million from more than 9,000 Portuguese investors.