Real Estate Crowdfunding Market to Reach Valuation of USD 161.8 Billion by 2030 – Growth in the Usage of Crowdfunding Platforms Drive the Market

In terms of revenue, the Global Real Estate Crowdfunding Market is expected to reach by 2030, growing at a CAGR of 45.9% from 2023 to 2030.

The growth of the Real Estate Crowdfunding market can be attributed to several factors. First, investors now have better access to and participation in real estate deals thanks to the development of technology and the growth of online platforms. Due to the democratization of the investment process, people with minimal starting capital can now participate in real estate ventures that were previously out of reach. Second, investors are looking for alternatives to conventional investment options like stocks and bonds as a result of the low-interest rate environment. Real Estate Crowdfunding is a desirable alternative for investors due to its attractive risk-adjusted returns and the benefits of diversification.

Additionally, the stricter rules governing conventional sources of financing for real estate, such as banks and private equity firms, have prompted business owners and developers to consider crowdsourcing as a potential source of funding. This has further fueled the growth of the Real Estate Crowdfunding market as a viable alternative for both investors and developers.

Key Highlights from the Report

. Based on Investor Type, the individual investor segment dominates the Real Estate Crowdfunding market. Crowdfunding platforms draw individual investors because they provide them access to a market that was previously closed off by allowing them to invest in real estate projects with lower minimum investment requirements.

. Based on Property Type, the market for Real Estate Crowdfunding is dominated by residential assets. Residential property investments are appealing because of the stability and familiarity they offer. Homes, apartments, and condos are safe investments for investors since they can generate rental income as well as possible capital growth.

. Based on Platform Type, the industry for Real Estate Crowdfunding is dominated by firms that concentrate on debt-based lending. By granting loans to real estate developers in exchange for interest payments, these platforms give investors the chance to take on the role of lenders. The perceived lower risk relative to equity-based platforms is one reason for the appeal of debt-based platforms.

. In terms of region, North America is expected to be the dominating region in

for Real Estate Crowdfunding market during the projected period. The largest Real Estate Crowdfunding market is still in the US in North America, followed by Canada. The established regulatory framework, technical improvements, and established crowdfunding platforms in the area all contribute to the region's dominance. In addition to providing a wide range of investment options throughout numerous cities and states, North America draws a sizable number of investors.

Market Dynamics

The growing demand from private investors looking for non-traditional financial market investment possibilities is one of the major drivers of the Real Estate Crowdfunding market. These investors now have a way to take part in real estate projects that were previously only open to institutional investors thanks to crowdfunding platforms.

Technological advancements have made crowdfunding platforms more approachable and user-friendly, enabling investors to browse and support a variety of real estate projects with a few simple clicks. Platforms like Fundrise and RealtyShares, for instance, have profited from the expansion of the Real Estate Crowdfunding industry in the United States. These platforms have drawn a sizable pool of investors and made investing in a variety of property kinds in numerous regions easier.

One of the most noticeable market trends is the growth of specialty markets and property kinds. Nowadays, crowdfunding websites target niche markets like real estate, housing construction, and even environmentally or socially conscious initiatives. This trend gives investors the chance to concentrate on topics that interest them while giving developers the chance to cater to a particular investor base. But there are also limitations that could prevent the Real Estate Crowdfunding market from expanding. The regulatory environment is one of the primary issues. varied nations have varied laws governing crowdfunding, which may restrict international investments and put obstacles in the way of new platforms' entry. Furthermore, for investors looking to diversify their portfolios through alternative investments, the possibility of fraud or mismanagement is a substantial obstacle.

Future prospects for the Real Estate Crowdfunding industry is bright, and there are many chances for additional expansion. The efficiency and transparency of crowdfunding platforms are anticipated to be improved by ongoing digitization and technological improvements, further boosting investor confidence. Additionally, as the global real estate market keeps developing, chances will present themselves for crowdfunding platforms to enter new markets and provide investment possibilities in developing areas or industries.

North America dominated the overall Real Estate Crowdfunding market in 2022, North America Real Estate Crowdfunding Market is estimated to be the most dominant region during the projected period. Several reasons contribute to this dominance. First off, the US's established legal system creates a favorable climate for the operation of crowdfunding services. Second, there is a strong culture of investing in North America, and many authorized investors are actively looking for alternative investment and finally, the area is a desirable investment choice for both domestic and foreign investors due to the strong economy and stable real estate market.

The Global Real Estate Crowdfunding Market is Segmented as follows

• Investors
  • Individual
  • Institutional
• Property Type
  • Residential
  • Commercial
  • Mixed-Use
• Platform Type
  • Equity Crowdfunding
  • Debt Crowdfunding
  • Hybrid Crowdfunding
• Region
  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa

A list of the Key Players of the Global Real Estate Crowdfunding Market is

AHP Servicing LLC (U.S.), Crowdestate AS (Estonia), CrowdStreet Inc. (U.S.), DiversyFund Inc. (U.S.), EstateGuru OÜ (Estonia), Fundrise LLC (U.S.), Groundbreaker Technologies Inc. (U.S.), Groundfloor Finance Inc. (U.S.), RealCrowd Inc. (U.S.), RM Technologies LLC (U.S.)

The Global Real Estate Crowdfunding Market Scope can be Tabulated below