Investors in Croatia in 2025 face a simple reality: money sitting in the bank is losing value. According to the Croatian National Bank, the average interest rate on long-term household deposits in July 2025 was just 0.75%, while annual inflation stood at 4.3% (HNB, kamatne stope na depozite 2025; HNB, inflacija 2025) .In practice, this means savings accounts shrink in real terms every year
With that in mind, more attention is shifting to alternatives: stocks, cryptocurrencies, REITs, and crowdfunding platforms. Each has its logic, but also serious drawbacks. When you look at the big picture, real estate stands out—especially through the SPV (Special Purpose Vehicle) model, which aligns investor and project owner interests while enabling financial leverage.
Cryptocurrencies: Attractive but Unstable
Over the past decade, cryptocurrencies have become a global phenomenon. Yet research shows most small investors lose money. The Bank for International Settlements reported in December 2022 that about three-quarters of Bitcoin buyers sold at a loss (BIS Quarterly Review, 2022).
This highlights a key fact: crypto can only play the role of a small, speculative slice of a portfolio. There is growth potential, but no stable income and no link to the real economy. Entering crypto is always a high-risk gamble, and it cannot form the basis of a secure long-term strategy.
Stocks: Returns at the Cost of Volatility
Historically, stocks deliver the highest returns among traditional asset classes. The Credit Suisse Global Investment Returns Yearbook 2023 shows global equities returned an average of 6.6% annually (real terms) between 1900 and 2022 (Dimson, Marsh & Staunton, 2023). But this impressive average hides brutal swings. Global stock indices, for example, fell by more than 20% in 2022 when interest rates spiked (World Bank, Global equity indices 2022).
On top of that, small investors have no control over corporate strategy, which often prioritizes management and large funds. Stocks are valuable for long-term growth, but the volatility is not tolerable for everyone.
REITs: Stock Market Products with Limitations
REITs (Real Estate Investment Trusts) make it possible to invest in property via the stock market. They bring liquidity and regular dividends. However, the European Securities and Markets Authority (ESMA) stresses that REITs show high correlation with equity markets, especially during crises (ESMA, Trends, Risks and Vulnerabilities, 2023).
This means REIT prices often behave like stocks, not like direct real estate. Retail investors also have no influence on fund decisions. The entry is easy, but the portfolio benefits are limited compared to direct property ownership.
Crowdfunding: Middlemen with Reputation Issues
Crowdfunding platforms allow people to invest in third-party projects, but that structure is exactly the problem. A PwC 2023 report revealed that many European platforms suffered from a large share of unpaid projects, damaging investor trust (PwC TLS Crowdfunding Report, 2023).
Since platforms act only as intermediaries, investors take on the full risk of projects that often aren’t bank-financed for a reason. Meanwhile, the platform collects its fee regardless of outcome. The result: conflicts of interest and reputational risks that are difficult to overcome.
Stake Estate: SPV Ownership and Leverage
Stake Estate operates on a different principle. Every project is structured as a separate SPV (Special Purpose Vehicle) that directly owns the property. Both investors and founders enter together, and equity shares translate into proportional profit shares. This eliminates the middleman problem and ensures that all interests are fully aligned.
Even more importantly, the model allows the use of financial leverage. According to the Croatian National Bank, in July 2025 interest rates on long-term construction sector loans ranged from 3% to 4.5% (HNB, kamatne stope na kredite poduzećima). With such reasonable borrowing costs, returns on invested equity can be significantly amplified. Leverage is optional, but when used responsibly it creates an edge that stocks, REITs, or crypto simply cannot match.
Conclusion
- Cryptocurrencies may offer upside but remain speculative and unstable.
- Stocks provide productivity and long-term growth, but with major volatility.
- REITs offer easy access but behave more like equities than properties.
- Crowdfunding suffers from conflicts of interest and poor trust.
By contrast, real estate through the Stake Estate SPV model combines tangible ownership, fully aligned interests, and the potential for leveraged returns. For investors in 2025, that means the security of hard assets paired with yields that can outperform most other options.
