Real Estate Crowdfunding Market 2023 – Market Size & Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Forecast 2030

The global market value of the real estate crowdfunding market was USD 15.1 billion in 2022, and a CAGR of 51.1% is expected during the forecast period. Increasing demand by the people for stable investment opportunities, the advantage of diversification, and the potential for high returns are the factors growing the market significantly during the forecast period. Lower barriers to entry and technological advancements facilitating easier investment and a good return process have propelled growth in the market. Regulatory changes supporting this market have also contributed to the significant growth during the forecast period. India and China, due to their large populations and good available land, are the key markets in this endeavor. FundRise is the best real estate crowdfunding platform due to its high level of transparency and low costs.

Impact of Covid-19

COVID-19 has badly hampered the real estate market. Due to economic uncertainty during that time, people were completely reluctant to invest money in any such sector. They were only bothered about the essential goods. It also led to an increase in interest in online investment platforms as traditional methods faced limitations. Investors sought more diversified portfolios, and certain sectors, like residential properties or essential commercial spaces, gained traction due to changing market demands. Overall, it was a temporary dip, and the market keeps on growing in the long run during the forecast period. COVID-19 brought a dip in the real estate crowdfunding market. The remote work culture had also affected the growth of the real estate crowdfunding market.

Growth Drivers

Increasing access for smaller investors and the potential for high returns are driving the growth in this market. The real estate market was on boom before the pandemic, and now, after the pandemic, this market is witnessing significant growth due to the increasing interest of people in residential properties. Residential properties have remained the most lucrative option for people to invest in. Residential real estate crowdfunding platforms have witnessed 84% growth during the forecast period. In comparison to traditional investments, high returns are possible. Regulatory changes allowing for easier crowdfunding participation have also driven its growth. Due to the improvement of user-friendly online platforms, investors now have pretty easy access to suitable residential or commercial properties.

Increasing technological advancements and the increasing popularity of real estate as a big business opportunity for investors are driving the growth in this market. The adoption of many beneficial government policies in many countries is also propelling the growth of the market. Increasing disposable income in all developed countries and in developing nations like India and China is witnessing substantial growth in the market. Real estate’s market future is complex and depends on numerous factors. Factors like interest rates, employment rates, and GDP growth impact housing demand and affordability. Changes in population size, age, and household formation affect housing needs and preferences. Innovations in construction, smart homes, and remote work reshape housing demand and design. Regulations, tax laws, and housing initiatives do impact buying, selling, and renting patterns. Climate change and sustainability concerns influence location preferences and construction methods.

Segmentation

Investors Type

·         Individual Investors

·         Group of Investors

Property Type

·         Residential Property

·         Commercial Property

Regional Outlook

·         Asia Pacific

·         North America

·         Europe

·         Middle East and Africa

·         Latin America

Real Estate Crowdfunding Market Property Type Segmentation

On the basis of property type, the real estate crowdfunding market is segmented into residential property and commercial property. Residential properties are a leading segment, offering lucrative opportunities for investors in North America, Europe, and the Asia-Pacific region. It provides an opportunity for investors to invest in property without buying it. Investors pool funds to buy, manage, and profit from residential real estate, often through online platforms. It offers diversification and lowers entry barriers.

Commercial properties are also known as commercial real estate and are intended to generate a profit either from capital gains or rental income. In many U.S. states, residential property containing more than a certain number of units qualifies as commercial property for borrowing and tax purposes. Increasing technological advancements in the real estate crowdfunding market are inclining the market towards growth. Increasing access and scope for small investors is even driving the growth in the market. Singapore and Malaysia are hubs for real estate in the Asia-Pacific region.

Regional Outlook

On the basis of the regions, the real estate crowdfunding market is segmented into 5 regions: Asia Pacific, North America, Europe, Latin America, and the Middle East and Africa. North America is leading the market, followed by Europe due to technological advancements and better infrastructure in comparison to the rest of the world. Countries like the U.S.A., Canada, Germany, England, Spain, Italy, and France are the leading markets. Increasing investor awareness in countries like China and India is growing the market significantly during the forecast period. Expanding the market’s platform, investor confidence, and market maturity are driving the growth in the market.

In the Asia-Pacific region, real estate crowdfunding businesses have been gaining traction in countries like Australia, China, and Singapore. The rising middle-class population and increasing disposable income in this region have increased the scope of the market in Japan and India as well. European real estate crowd-funding has experienced substantial growth in recent years. Factors contributing to the growth include favorable regulatory changes, low interest rates, tech innovation, and a desire for diversification among investors. Differences in regulations and market maturity are driving growth in countries like France, Germany, Spain, Italy, and England.

Singapore and India in the Asia Pacific region are the big markets, witnessing growth in the market. The key factors driving growth in the market are the presence of key players. Europe in particular is a region of immense popularity. Europe, especially western Europe, including countries like Germany, France, Spain, Italy, and England, is providing an opportunity for investors to invest and earn in an efficient manner.

Key Players

·         AHP Servicing LLC

·         Crowdestate AS

·         Crowdstreet Inc

·         Diversyfund INC

·         Estateguru OU

·         Fundrise LLC

·         Groundbreakers Technology INC

·         GroundFloor Finance INC

·         Realcrowd INC

·         RM technologies INC

·         Other Players