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Real Estate Crowdfunding Market

Real Estate Crowdfunding Market: Segmented By Investors (Individual and Institutional); By Model (Lending, and Equity); By Real Estate Sector (Residential, and Commercial) and Region - Global Analysis of Market Size, Share & Trends for 2019-2020 and Forecasts to 2030

Published on: May-2021
Report Code: FG ICT 00726
No. of Pages: 170-350
Report Format: PDF

[170+ Pages Research Report] Real Estate Crowdfunding to surpass USD 1362.21 billion by 2030 from USD 150.14 billion in 2020 at a CAGR 24.67% in the coming years, i.e., 2021-30.

Product Overview

Crowdfunding is a means of raising funds for companies as well as a simpler way for investors to gain access to those projects. It reaches out to potential investors through the Internet and social media platforms such as Facebook, Twitter, and LinkedIn. Crowdfunding works on the principle that if enough people are willing to spend a small amount, large amounts of money can be raised rapidly. Crowdfunding allows businesses to obtain money that they otherwise would not be able to obtain. Crowdfunding allows investors to become shareholders of a business or in real estate property.

Market Highlights

Global Real Estate Crowdfunding Market is expected to project a notable CAGR of 24.67% in 2030.

Increasing global industrialization, which is propelling commercial real estate operations, as well as favorable real estate crowdfunding regulations by the governments of several economies around the world, are some of the main factors expected to drive market growth over the forecast period. In addition, growing trends in real estate crowdfunding platform's adoption of bitcoin cryptocurrency are expected to drive market growth in the coming years.

Global Real Estate Crowdfunding Market: Segments

Institutional segment to grow with the highest CAGR during 2020-30

Global Real Estate Crowdfunding Market is segmented by Investors into Individual and Institutional. Institutional is expected to grow with the highest CAGR during the forecast period. Institutional investment comprises life insurance companies and pension funds. which include life insurance companies and pension funds. Institutional investors typically invest in amounts greater than USD 10 million at a time, allowing crowdfunding sites to raise millions of dollars quickly.

Commercial segment to grow with the highest CAGR during 2020-30

Global Real Estate Crowdfunding is divided by Real Estate Sector into Residential and Commercial sectors. Commercial segment is expected to grow with the highest CAGR during the forecast period due to the substantial demand for raising funds for the construction of schools, hospitals, malls, and shopping centers in the emerging economies.

Market Dynamics

Drivers

Booming Construction Activities

The number of commercial real estate operations, such as the construction of commercial structures, homes, and others, such as hospitals, clinics, apartment buildings, duplexes, schools, and others, has increased significantly in recent years. As a result of these trends, there is a growing need for funds to promote these activities, which is expected to boost the growth of crowdfunding platforms in the coming years. Furthermore, construction loans obtained through crowdfunding platforms are emerging as a new source of financing for major construction sectors, such as residential and industrial, allowing investors to avoid purchasing the entire project.

Surge in Adoption of BlockChain Technology to Expand Market Growth

Real estate transactions are now easier and quicker than ever before because of blockchain technology. It is increasingly being used to create smart contracts and tokenization. Real estate crowdfunding on the blockchain includes a controlled, decentralized listing, property financing, and management platform. It uses the blockchain to reorganize rental agreements, properties, property task management, purchase/sale agreements, and related services. By allowing investors and owners to exchange funds and data easily and safely, blockchain technology enables peer-to-peer funding for real estate ventures and reorganizes real estate requirements.

Restraint

Risk Related to Crowdfunding

Rising instances of crowdfunding fraud recorded in several countries around the world, as well as the high risks associated with these investments, are expected to hamper the market growth. Additionally, securities purchased through equity crowdfunding platforms are highly illiquid, exit options are limited or non-existent, similar to those available to traditional venture capital investors.

Global Real Estate Crowdfunding Market: Key Players

  • CrowdStreet, Inc.

Company Overview, Business Strategy, Key Product Offerings, Financial Performance, Key Performance Indicators, Risk Analysis, Recent Development, Regional Presence, SWOT Analysis

  • RM Technologies LLC
  • RealCrowd, Inc.
  • Groundbreaker Technologies, Inc.
  •  Groundfloor Finance Inc.
  • DiversyFund, Inc.
  • EstateGuru OÜ
  • AHP Servicing LLC
  • Crowdestate AS
  • Fundrise, LLC
  • Other Prominent Players

Global Real Estate Crowdfunding Market: Regions

Global Real Estate Crowdfunding Market is segmented based on regional analysis into five major regions. These include North America, Latin America, Europe, Asia Pacific, and the Middle East, and Africa. Global Real Estate Crowdfunding in North America held the largest market share of XX.X% in the year 2020. The growth is attributed to the huge presence of key market players and massive crowdfunding from key financers in the region. The U.S. is likely to make a notable revenue contribution towards the North American market. The real estate crowdfunding market in Canada is anticipated to witness significant growth in the near future on account of the growing development of commercial real estate properties, along with the increasing awareness amongst individuals from crowdfunding platforms.

Global Real Estate Crowdfunding Market is further segmented by region into:

  • North America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United States and Canada
  • Latin America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – Mexico, Argentina, Brazil, and Rest of Latin America
  • Europe Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United Kingdom, France, Germany, Italy, Spain, Belgium, Hungary, Luxembourg, Netherlands, Poland, NORDIC, Russia, Turkey, and Rest of Europe
  • Asia Pacific Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – India, China, South Korea, Japan, Malaysia, Indonesia, New Zealand, Australia, and Rest of APAC
  • Middle East and Africa Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – North Africa, Israel, GCC, South Africa, and Rest of MENA

Global Real Estate Crowdfunding Market report also contains analysis on:

Real Estate Crowdfunding Market Segments:     

  • By Investors
    • Individual Investors
    • Institutional Investors
  • By Model
    • Lending
    • Equity
  • By Application
    • Residential
    • Commercial
  • Real Estate Crowdfunding Market Dynamics
  • Real Estate Crowdfunding Market Size
  • Supply & Demand
  • Current Trends/Issues/Challenges
  • Competition & Companies Involved in the Market
  • Value Chain of the Market
  • Market Drivers and Restraints

Real Estate Crowdfunding Market Report Scope and Segmentation

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