Real Estate Crowdfunding Market Size & Share, by Investors (Institutional Investors, Retail Investors); Real Estate Sector (Residential, Commercial) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2024-2036

  • Report ID: 2874
  • Published Date: Sep 18, 2023
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2024 - 2036

Real Estate Crowdfunding Market size is anticipated to reach USD 2724.7 Billion by the end of 2036, growing at a CAGR of 50.1% during the forecast period i.e., 2024-2036. In the year 2023, the industry size of the real estate crowdfunding was over USD 21 billion. One of the main factors expected to drive market growth over the forecast period is global industrialization, which is driving commercial real estate activities, as well as favorable regulations on real estate crowdfunding in several countries around the world. Furthermore, growth in the market is expected to be driven by an increasing trend of bitcoin investment & cryptocurrencies. Bitcoin price is expected to increase to USD 1 billion by 2036, rendering more investments and driving the market forward.

Property crowdfunding platforms enable investors to be more transparent and in control of their investments and provide individuals with a diversified portfolio, with a success rate of 61%, which is expected to garner a significant market share over the forecast period.  


Real Estate Crowdfunding Market size
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Real Estate Crowd Funding Sector: Growth Drivers and Challenges

Growth Drivers

  • Prevalence of Blockchain Technology - With the use of Blockchain technology, transactions in real estate have become more easy and rapid. In order to develop smart contracts and tokenization, blockchain technology is rapidly being used. The regulatory, decentralized listing of assets and property financing as well as the platform management are included in Blockchain real estate crowdfunding.
  • Increase in Construction Activities - The sector of real estate has seen a substantial increase over the last few years, where there has been an increased number of business property developments including construction and other elements like clinics, apartments, or schools. The construction industry is estimated to constitute 13% of global GDP by 2030 as a result, it is becoming more and more necessary to set aside resources for promoting such events in order to promote the growth of crowdfunding platforms over the coming years.
  • Diversifying and accessing lucrative investment opportunities- By investing in several real estate projects with a small amount of money, real estate crowdfunding allows investors to diversify their portfolios. Real estate crowdfunding platforms provides a platform for all individual irrespective of income, providing lucrative opportunities for all individuals

Challenges

  • Platform risks and due diligence - There are a number of platforms available for financing real estate each with its own distinctive characteristics and features. However, there is uncertainty over the investment returns.
  •  Cyclical, and susceptible to a number of variables, including interest rates, and economic conditions.
  • Lack of liquidity makes it difficult for investors to access their capital when needed.

Real Estate Crowdfunding Market: Key Insights

Base Year

2023

Forecast Year

2024-2036

CAGR

~ 50.1%

Base Year Market Size (2023)

~ USD 21 Billion

Forecast Year Market Size (2036)

~ USD 2724.7 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Real Estate Crowd Funding Segmentation

Investors (Institutional Investors, Retail Investors)

Institutional investors are expected to hold 67% share of the global real estate crowdfunding market by 2036. Institutional investors continue to increase their investments in crowdfunding platforms, insurance companies, and pension funding, in particular. In recent years, institutional investors such as insurance companies and pension funds have become increasingly active in the global investment sector, accounting for 80% of the total market.

Real Estate Sector (Residential, Commercial)

Real estate crowdfunding market from the residential segment is expected to hold a dominant revenue share 0ver the forecast period, covering properties that are mainly intended to be occupied for the purpose of housing, e.g. detached family homes, townhouses, duplexes, triplexes, and apartments with four or more occupants. This sector, as it enables investors to enter the market more easily and is less risky than others, has become one of the favorite sectors in the Crowdfunding Market for Real Estate.

Our in-depth analysis of the global market includes the following segments:

          Investors

  • Institutional Investors
  •  Retail Investors

        Real Estate Sector

  • Residential
  • Commercial

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Real Estate Crowd Funding Industry - Regional Synopsis

APAC Market Forecast

The Asia Pacific region is expected to dominate the real estate crowdfunding market throughout the forecast period, accounting for a market share of 48%. Rising industrialization and rapid urbanization are driving up the number of construction projects undertaken by businesses in emerging countries in South Korea, India, and China. The market growth in the region is being driven by the adoption of new technologies like digital payment with a total transaction value of USD 4.7 trillion,

European Market Statistics

The market for real estate crowdfunding is expected to garner a substantial market share over the forecast period. European countries offer a wide range of investment opportunities, from established real estate markets in Western Europe to emerging markets in Eastern Europe. This diversity leads to varying levels of adoption, accounting for 33% of  real estate funding funding crowd-funding investments.

Research Nester
Real Estate Crowdfunding Market
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Companies Dominating the Real Estate Crowd Funding Landscape

top-features-companies
    •  Crowd Street, Inc.
    • Company Overview
    • Business Strategy
    • Key Product Offerings
    • Financial Performance
    • Key Performance Indicators
    • Risk Analysis
    • Recent Development
    • Regional Presence
    • SWOT Analysis

     

    • RM Technologies LLC.
    • Trinity Investors
    • Ground breaker 
    • Ground floor
    • Neighbourhood Ventures
    • Divers Fund, Inc.
    • Estate guru
    • AHP Servicing LLC
    • crowdestate.eu
    • Undersell

In the News

  • Janaury, 2023- Neighbourhood Ventures, one of the largest real estate crowdfunding companies in the United States, announced the launch of N.V. REIT, an unprecedented national offering that enables qualified and nonaccredited investors with all levels of income to benefit from a new investment opportunity for their properties.
  • October, 2022- Crowd Street, Inc., an award winning online real estate investment platform, announced that it has raised USD 43 million in equity and debt capital to support its growth and to make the market for online real estate investment.

Author Credits:  Yashika Karodiwal, Radhika Gupta


  • Report ID: 2874
  • Published Date: Sep 18, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Increase in construction activities, prevalence of blockchain technology and Diversifying and accessing lucrative investment opportunities are some of the major growth factors for the market.

The market size of Real estate crowdfunding market is anticipated to attain a CAGR of 50.1% over the forecast period, i.e., 2024 – 2036.

The major players in the market are RM Technologies LLC., Trinity Investors, Groundbreaker, Groundfloor, Neighborhood Ventures, DiversyFund, Inc., Estateguru, AHP Servicing LLC, crowdestate.eu, Fundrise, LLC and others.

The institutional investors segment is anticipated to garner the largest market size by the end of 2036 and display significant growth opportunities.

The market in the Asia Pacific region is projected to hold the largest market share by the end of 2036 and provide more business opportunities in the future.
Real Estate Crowdfunding Market Report Scope
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