Real Estate Crowdfunding Market Size, Share, Growth, and Forecast Report 2032

Real Estate Crowdfunding Market Insights

According to a report from Zion Market Research, the global Real Estate Crowdfunding Market was valued at USD 21.99 Billion in 2023 and is projected to hit USD 538.79 Billion by 2032, with a compound annual growth rate (CAGR) of 42.68% during the forecast period 2024-2032.

This report explores market strengths, weakness, opportunities, and threats. It also provides valuable insights into the market's growth drivers, challenges, and the future prospects that may emerge in the Real Estate Crowdfunding Market industry over the next decade.

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Real Estate Crowdfunding Market Size

The report offers a valuation and analysis of the Real Estate Crowdfunding market on a global as well as regional level. The study offers a comprehensive assessment of the industry competition, limitations, sales estimates, avenues, current & emerging trends, and industry-validated market data. The report offers historical data for 2018 and 2022 along with a forecast from 2024 to 2032 based on value (USD Billion).

Real Estate Crowdfunding Market Overview

Crowdfunding is the practice of project funding by raising a small proportion of currency from a large section of the population through the web.  Apparently, crowdfunding is a kind of crowdsourcing and it accrued nearly USD 33.1 billion in 2015. Furthermore, the real estate sector has been a key driver of the crowdfunding business. In addition to this, a large number of money is spent on the construction of real assets such as malls and apartments. Real estate crowdfunding business utilizes social networking sites such as LinkedIn, Facebook, and Twitter for attracting a plethora of investors.

Furthermore, real estate crowdfunding is the digital tool for gathering capital to finance mortgages procured by the real estate industry. For the record, real estate crowdfunding activities have gained popularity due to large-scale promotional activities carried out by RealCrowd, RealtyMogul, IndieGoGo, Kickstarter, CrowdStreet, Fundraise, and American Homeowner Preservation firms.

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Market Growth Dynamics

Massive construction activities witnessed in commercial and residential sectors will propel the expansion of the real estate crowdfunding industry over the years ahead. With the emergence of the e-commerce industry and the rise in the demand for online real estate crowdfunding activities, the market for real estate crowdfunding is likely to gain traction over the ensuing years. In addition to this, real estate crowdfunding helps in choosing specific assets that help in fulfilling particular investment plans. Apart from this, online real estate crowdfunding has emerged as a cost-efficient platform for investors to fund real estate assets. Nevertheless, low liquidity is likely to have an adverse impact on the expansion of the real estate crowdfunding market over the assessment timeline.

Moreover, the humungous need for private funding and commercial real estate activities will proliferate the market demand in the years ahead. The surge in real estate crowdfunding sponsors will translate into escalating growth of the real estate crowdfunding industry over the years to come.

Market Analysis

Crowdfunding for real estate transactions is an investing strategy that is still relatively new but has seen significant growth in popularity over the past few years. It is a method of financing real estate projects that involves collecting funds from a large number of investors, typically through the use of an Internet platform. The following is a breakdown of the regional trends seen in the crowdfunding market for real estate:

The real estate crowdfunding market in North America is one of the largest in the world, with the United States of America being the most prominent player. The high level of investment in the real estate sector, the significant number of certified investors, and favorable government rules are driving the market.

Europe: Another one of the world's most important markets for real estate crowdfunding in Europe. The strong demand for property investments, an increasing number of platforms, and favorable legal frameworks are the primary factors driving this market. The most important consumer markets in the region include nations such as the United Kingdom, France, and Germany.

The real estate crowdfunding market in Asia-Pacific is expanding at a rapid rate, with nations like China, Australia, and Japan being the region's main marketplaces. The increasing number of high-net-worth individuals, expanding urbanization, and favorable policies implemented by the government are the primary factors driving the expansion of the market.

Middle East and Africa: The crowdfunding industry for real estate in the Middle East and Africa is still in its infancy but is developing at a rapid rate. The market is being driven by factors such as increased demand for property investments, an increasing number of platforms, and favorable laws from the government.

In general, it is anticipated that the worldwide market for real estate crowdfunding will continue rising, leading to the development of new platforms and the expansion of the offerings provided by existing platforms. Nonetheless, there are dangers associated with participating in the market, including the possibility of fraud, a lack of liquidity, and the unpredictability of regulatory policies. As a result of this, prospective investors in real estate crowdfunding projects should proceed with extreme caution and undertake extensive research before making any investments.

European Real Estate Crowdfunding Market To Expand Leaps & Bounds By 2032

The expansion of the market in the continent over the assessment period can be attributed to low entry barriers in the real estate industry. Additionally, the requirements for investing in the real estate industry in European countries are not as strict as in the U.S.

Real Estate Crowdfunding Market: Report Scope

Key Market Players & Competitive Landscape

Key participants profiled in the report include 

• M2CROWD
• BrickFunding
• Groundbreaker Technologies Inc.
• RM Technologies LLC
• Profitus
• ReInvest24
• CrowdStreet Inc.
• Fundrise LLC
• American Homeowner Preservation LLC
• Bulkestate
• Cadre
• Crowdestate OÜ
• Estateguru OÜ
• Housers
• REALCROWD INC.
• Square Meter SAPI de CV.

This report segments the Real Estate Crowdfunding market as follows:

By Investors Segment Analysis

• Individual Investors
• Institutional Investors

By Property Type Segment Analysis

• Residential
• Commercial
  • Schools
  • Hospitals
  • Shopping Centers
  • Industrial Buildings
  • Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa