At Afranga, we continuously work on expanding and improving our product offering to better serve different investor preferences. Today, we are introducing Real Estate Loans a new investment opportunity that gives investors access to property-backed projects with fixed returns.
Below, you will find what Real Estate Loans are, how they work, and what our first project looks like.
What Are Real Estate Loans?
Real Estate Loans on Afranga are fixed-term loans where multiple investors collectively fund a real estate development project. Each investor contributes a portion of the total loan amount and earns a fixed interest rate over the loan term, with interest paid monthly.
As with all investments on Afranga, Real Estate Loans are governed by legally binding agreements and remain fully aligned with Afranga’s regulatory framework under ECSP.
Our First Project is Here
The first Real Estate Loan available on Afranga is Modern Housing – Ovcha Kupel, a purpose-built rental housing development in one of Sofia’s fastest-growing neighborhoods, designed for students and young professionals. The project
The project will deliver 315 fully furnished single-bed studios with integrated kitchenettes and en-suite bathrooms. Standardized layouts across both buildings reduce construction complexity, improve procurement efficiency, and support long-term rental operations. Located next to New Bulgarian University, the site offers excellent connectivity with 3 metro stations within walking distance, placing Sofia’s city center just 15 minutes away by metro.
The loan offers a fixed return of 9% p.a. over a 12-month term, with interest paid monthly to your Afranga wallet.
The loan is backed by the residential land being acquired (8,072 m²). The land has been independently valued, and the loan-to-value ratio stands at 66% — meaning the land’s market value covers the loan amount by more than 1.5 times.
Feasibility studies, legal due diligence, and conceptual design have all been completed. Land acquisition is planned for August 2026, followed by a 36-month construction and development timeline.
Discover more about the project here.
Quick Liquidity is Coming Soon
Quick Liquidity will initially be introduced for Real Estate investments through SaveSmart, providing investors with greater flexibility. The feature is expected to be extended to other loan investments at a later stage as well.
How to Invest
Investing in a Real Estate Loan is straightforward:
- Log in to your Afranga account
2. Open SaveSmart and choose Real Estate
3. Invest and start earning monthly returns
Regulatory Protection and Transparency
Before investing, you can review the project documentation, including the Key Investment Information Sheet (KIIS) and the loan agreement. If you are classified as a non-sophisticated investor, a mandatory 4-day reflection period applies. During this time, you may revoke your investment without penalty.
Real Estate Loans are not bank deposits and are not covered by deposit guarantee schemes. As with any investment, there is a risk of partial or full loss of capital.
A New Step Forward
Real Estate Loans represent another step in Afranga’s ongoing effort to provide flexible, transparent investment solutions tailored to different investor needs.
Whether you prefer actively building your portfolio loan by loan or choosing a simplified fixed-term approach, Afranga continues to expand the tools available to you.
If you have questions about Real Estate Loans, our support team is always happy to help.