Real Estate Crowdfunding Market Overview

The global Real Estate Crowdfunding market is estimated to reach USD 1723.17 billion by 2030, growing at a CAGR of 58.4% during the forecast period 2022-2030, and it was calculated at USD 45.63 billion in 2022.

Growing globalization and industrialization worldwide, which is boosting residential and commercial real estate activities, with auspicious regulations for real estate crowdfunding by governments of several economies around the world, are the significant factors to drive the growth of the real estate crowdfunding market throughout the forecast period. Moreover, the rising adoption of IT technologies, such as artificial intelligence, blockchain and others, the increasing adoption of Bitcoin cryptocurrencies by real estate crowdfunding platforms are also expected to drive market growth over the forecast period.

What is Real Estate Crowdfunding?

Real estate crowdfunding is a new and innovative way for business owners to raise money. This process requires reaching a large pool of small investors who invest small amounts of money in real estate projects rather than asking investors to make large investments. Real Estate Crowdfunding is a digital tool for raising funds to fund mortgages raised by the real estate industry. As a result, large funds are being spent on real estate construction assets such as apartments and shopping malls. Real estate crowdfunding business uses social networks such as Twitter, Facebook, LinkedIn, etc.

Growth Driver

Growing construction activities in the real estate sector

Growing construction activities are the factor that drives the real estate crowdfunding market. The numeral of commercial real estate activities, including the expansion of commercial structures, buildings, and others, such as clinics, hospitals, apartment buildings, schools, duplexes, and others, with such development, there is an increasing need to allocate capital for the promotion of these events, which is expected to fuel the growth of crowdfunding platforms in the forecast period. Furthermore, construction loans through crowdfunding platforms are emerging as a new source of financing for construction sectors, including commercial and residential, through which investors do not need to buy the entire property.

Opportunity:

The emergence of e-commerce industries and growing blockchain technology

Crowdfunding in real estate helps select particular properties to help achieve specific investment plans. Online real estate crowdfunding has become a lucrative platform for investors to finance real estate properties. Furthermore, With the emergence of the e-commerce industry and the increase in demand for online real estate crowdfunding businesses, the real estate crowdfunding market is expected to gain momentum in the future. Blockchain technology is restructuring real estate needs by facilitating peer-to-peer finance for real estate projects and enabling investors and owners to share funds and data efficiently and securely. Technology helps eliminate intermediaries, reduce fraud and better manage information.

Restraints

Low liquidity and crowdfunding frauds

The low liquidity of an investment is expected to impact the development of the real estate crowdfunding market. In addition, the high risks associated with these investments, along with the increasing number of cases of crowdfunding fraud reported in several countries around the globe, are some of the factors that are expected to hinder the market growth.

Pre-Covid-19 impact on global Real Estate Crowdfunding market

Before the covid-19 pandemic, the increasing number of real estate activities are the growth of the global real estate crowdfunding market. Real estate crowdfunding reduces fees and allows investors to select specific assets that help them carry out specific investment plans, and real estate crowdfunding activities have advanced into cost-effective tools for people to fund high-quality real estate assets. Increasing demand for the residential and commercial sectors is driving the market before the covid era.

Covid-19 impact on global Real Estate Crowdfunding market

During the pandemic, the real estate sector has impacted the corona crisis has shifted the focal point of the buyers to make investments extra in essential goods and much less in non-essential goods. The flow of the investment did not impact the Covid crises. As a result, they are slow growth of the real estate crowdfunding market. Investment in real estate was further supported by changing preferences for businesses to operate online. Due to the social distance, it was almost unmanageable for real estate professionals to physically show real estate. Nevertheless, the covid-19 pandemic has led to an extensive decline in the transaction volume of crowdfunding platforms.

Post Covid-19 impact on global Real Estate Crowdfunding market

Demand for Real Estate Crowdfunding is gaining momentum due to the investments in the real estate crowdfunding platforms starting after the covid-19 period. The rising adoption of IT technologies, such as artificial intelligence, blockchain, machine learning and others in the real estate sector for obtaining funds, growing globalization and industrialization. The increasing adoption of real estate crowdfunding in commercial and residential sectors is the factor to enhance the market’s growth across the world.

Investors Segmental Analysis

Based on investor segmental analysis, the global real estate crowdfunding market is categorized into individual and institutional investors. The institutional investor segment will have the largest market share in the global Real Estate Crowd Funding market. The growth is primarily due to the Institutional investors typically investing huge amounts, which helps real estate crowdfunding platforms raise millions of dollars.

Type Segmental Analysis

Based on the segmental type analysis, the global real estate crowdfunding market is categorized into equity crowdfunding and lending crowdfunding. The lending crowdfunding segment will hold the highest market share in 2021. However, lending crowdfunding is anticipated to grow and gain the largest market revenue by 2030. With lending crowdfunding, the investment is lending directly to the owner of the real estate asset. According to the investment, this gives the individual no shares but a fixed income on the project’s interest rate.

Property Type Segmental Analysis

Based on property type segmental analysis, the global real estate crowdfunding market is residential and commercial. The residential segment will have a major market share in the global real estate crowdfunding market. The growth is primarily due to the residential sector focusing on the buying and selling properties and properties for residential or non-commercial purposes. The residential assets include a single-family home, apartment, and others.

Region Segmental Analysis

Based on the regional segmental analysis, the global real estate crowdfunding market is categorized into North America, Asia Pacific, Europe, South America, and The Middle East & Africa. The Asia Pacific accounts for the highest market share during the forecast period. The segmental growth in the region is due to growing industrialization and increasing construction activities in the real estate in the region, increasing the residential and commercial real estate activities and therefore the requirement for funding of various real estate projects.

Competitor Analysis

Companies include M2crowd, Realcrowd Inc., Ground Breaker Technologies Inc., RM Technologies LLC, CrowdStreet Inc., Crowdstate AS, Diversy Fund, Inc., Bulkestate, Square Meter SAPI de CV, Fundrise LLC, Ground Floor Finance Inc., Brick Funding, AHP Servicing LLC, American Homeowner Preservation LLC, Others Prominent Players in the global real estate crowdfunding market.

Key Stakeholders

• Market research and consulting firms
• Industry associations
• Global Real Estate Crowd Funding firm
• Local governments
• Regulatory bodies
• Suppliers
• Retailers

Recent Development

• In 2022, Ground floor Announces $118M in New Capital, Partnership with Medipower.
• In 2021, Brick Funding launched a new Investment Marketplace, Brickfy. Brickfy, the investment platform for business and property-backed loans.

Scope of the Report

Market Modelling

By Investors

• Individual Investors
• Institutional Investors

By Type

• Equity Crowdfunding
• Lending Crowdfunding

By Property Type

• Residential
• Commercial

By Region

• North America
• Europe
• Asia Pacific
• South America
• Middle East & Africa

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Report Content

1.     Research Strategic Development

1.1.   Market Modelling

1.2.   Product Analysis

1.3.   Market Trend and Economic Factors Analysis

1.4.   Market Segmental Analysis

1.5.   Geographical Mapping

1.6.   Country Wise Segregation

2.     Research Methodology

2.1.   Identification of Target Market

2.2.   Data Acquisition

2.3.   Refining of Data/ Data Transformations

2.4.   Data Validation through Primary Techniques

2.5.   Exploratory Data Analysis

2.6.   Graphical Techniques/Analysis

2.7.   Quantitative Techniques/Analysis

2.8.   Visual Result/Presentation

3.     Executive Summary
4.     Market Insights

4.1.  Supply Chain Analysis

4.2.  Economic Factor Analysis

4.2.1.            Drivers

4.2.2.            Trends

4.2.3.            Opportunities

4.2.4.            Challenges

4.3.  Technological Landscape

4.4.  Competitors & Product Analysis

4.5.   Regulatory Framework

4.6.   Company market share analysis, 2022

4.7.  Porter’s Five Forces Analysis

4.8.  Price point analysis

4.9.  New Investment Analysis

4.10.PESTEL Analysis

4.11.Impact of COVID-19 Global Real Estate Crowd Funding Market

4.11.1.        Pre-Covid-19 Impact on The Global Real Estate Crowd Funding Market

4.11.2.        Covid-19 Impact on The Global Real Estate Crowd Funding Market

4.11.3.        Post Covid-19 Impact on The Global Real Estate Crowd Funding Market

4.11.4.        Economic Impact Study on Global Real Estate Crowd Funding Market

5. Global Real Estate Crowdfunding Market, 2017-2030

5.1.  Market size & Forecast, 2017-2030

5.1.1.            Demand

5.1.1.1.            By Value (USD Billion)

5.2.  Market Share & Forecast, 2017-2030

5.2.1.            By Investors

5.2.1.1.            Individual Investors

5.2.1.2.            Institutional Investors

5.2.2.            By Type

5.2.2.1.            Equity Crowdfunding

5.2.2.2.            Lending Crowdfunding

5.2.3.            By Property Type

5.2.3.1.            Residential

5.2.3.2.            Commercial  

5.2.4.            By Region

5.2.4.1.            North America

5.2.4.2.            Europe

5.2.4.3.            Asia Pacific

5.2.4.4.            The Middle East & Africa

5.2.4.5.            South America

6. North America Real Estate Crowdfunding Market, 2017-2030

6.1.  North America Real Estate Crowdfunding Market size & Forecast, 2017-2030

6.1.1.            Demand

6.1.1.1.            By Value (USD Billion)

6.2.  North America Real Estate Crowdfunding Market Share & Forecast, 2017-2030

6.2.1.            By Investors

6.2.1.1.            Individual Investors

6.2.1.2.            Institutional Investors

6.2.2.            By Type

6.2.2.1.            Equity Crowdfunding

6.2.2.2.            Lending Crowdfunding

6.2.3.            By Property Type

6.2.3.1.            Residential

6.2.3.2.            Commercial  

6.2.4.            By Country

6.2.4.1.            US

6.2.4.2.            Canada

6.2.4.3.            Mexico

7. Europe Real Estate Crowdfunding Market, 2017-2030

7.1.  Europe Real Estate Crowdfunding Market size & Forecast, 2017-2030

7.1.1.            Demand

7.1.1.1.            By Value (USD Billion)

7.2.  Europe Real Estate Crowdfunding Market Share & Forecast, 2017-2030

7.2.1.            By Investors

7.2.1.1.            Individual Investors

7.2.1.2.            Institutional Investors

7.2.2.            By Type

7.2.2.1.            Equity Crowdfunding

7.2.2.2.            Lending Crowdfunding

7.2.3.            By Property Type

7.2.3.1.            Residential

7.2.3.2.            Commercial  

7.2.4.            By Country

7.2.4.1.            Germany

7.2.4.2.            UK

7.2.4.3.            France

7.2.4.4.            Italy

7.2.4.5.            Rest of Europe

8. Asia Pacific Real Estate Crowdfunding Market, 2017-2030

8.1.  Asia Pacific Real Estate Crowdfunding Market size & Forecast, 2017-2030

8.1.1.            Demand

8.1.1.1.            By Value (USD Billion)

8.2.  Asia Pacific Real Estate Crowdfunding Market Share & Forecast, 2017-2030

8.2.1.            By Investors

8.2.1.1.            Individual Investors

8.2.1.2.            Institutional Investors

8.2.2.            By Type

8.2.2.1.            Equity Crowdfunding

8.2.2.2.            Lending Crowdfunding

8.2.3.            By Property Type

8.2.3.1.            Residential

8.2.3.2.            Commercial  

8.2.4.            By Country

8.2.4.1.            China

8.2.4.2.            India

8.2.4.3.            Japan

8.2.4.4.            Australia

8.2.4.5.            Rest of Asia pacific

9. The Middle East & Africa Real Estate Crowdfunding Market, 2017-2030

9.1.  The Middle East & Africa Real Estate Crowdfunding Market size & Forecast, 2017-2030

9.1.1.            Demand

9.1.1.1.            By Value (USD Billion)

9.2.  The Middle East & Africa Real Estate Crowdfunding Market Share & Forecast, 2017-2030

9.2.1.            By Investors

9.2.1.1.            Individual Investors

9.2.1.2.            Institutional Investors

9.2.2.            By Type

9.2.2.1.            Equity Crowdfunding

9.2.2.2.            Lending Crowdfunding

9.2.3.            By Property Type

9.2.3.1.            Residential

9.2.3.2.            Commercial  

9.2.4.            By Country

9.2.4.1.            Saudi Arabia

9.2.4.2.            UAE

9.2.4.3.            South Africa

9.2.4.4.            Rest of The Middle East & Africa

10. South America Real Estate Crowdfunding Market, 2017-2030

10.1.                    South America Real Estate Crowdfunding Market Size & Forecast, 2017-2030

10.1.1.        Demand

10.1.1.1.        By Value (USD Billion)

10.2.                    South America Real Estate Crowdfunding Market Share & Forecast, 2017-2030

10.2.1.        By Investors

10.2.1.1.        Individual Investors

10.2.1.2.        Institutional Investors

10.2.2.        By Type

10.2.2.1.        Equity Crowdfunding

10.2.2.2.        Lending Crowdfunding

10.2.3.        By Property Type

10.2.3.1.        Residential

10.2.3.2.        Commercial  

10.2.4.        By Country

10.2.4.1.        Brazil

10.2.4.2.        Argentina

10.2.4.3.        Rest of South America

11. Competitor Analysis

11.1. Company Description

11.2. Financial Analysis

11.3. Key Products

11.4. Key Management Personnel

11.5. Contact Address

11.6. SWOT Analysis

11.7. Company profile

11.7.1.        M2crowd

11.7.2.        Realcrowd Inc.

11.7.3.        Ground Breaker Technologies Inc.

11.7.4.        RM Technologies LLC

11.7.5.        CrowdStreet Inc.

11.7.6.        Crowdstate AS

11.7.7.        Diversy Fund, Inc.

11.7.8.        Bulkestate

11.7.9.        Square Meter SAPI de CV

11.7.10. Fundrise LLC

11.7.11. Ground Floor Finance Inc.

11.7.12. Brick Funding

11.7.13. AHP Servicing LLC

11.7.14. American Homeowner Preservation LLC

11.7.15. Other Prominent Players