30-May-2024 | Facts and Factors
Facts and Factors Market Research has published a new report titled “Real Estate Crowdfunding Market Size, Share, Growth Analysis Report By Property Type (Commercial and Residential), By Investor Type (Institutional and Individual), By Platform (Equity-based Crowdfunding, Debt-based Crowdfunding, and Others), and By Region - Global and Regional Industry Insights, Overview, Comprehensive Analysis, Trends, Statistical Research, Market Intelligence, Historical Data and Forecast 2024 – 2032”. According to the report, the global real estate crowdfunding market is predicted to be valued at approximately USD 12.17 billion in 2023 and is expected to reach a value of around USD 349.26 billion by 2032, at a CAGR of around 45.2% between 2024 and 2032.
Crowdfunding is the utilization of a lesser proportion of capital from a large number of investors who are eager to fund a new business project. Crowdfunding makes use of the easily available and communicable social media networking websites and crowdfunding websites to contact the investors and bring them & the entrepreneurs on the same platform. This helps in enhancing and promoting entrepreneurship due to the rise in the pool of financiers apart from the traditional circle of proprietors, relatives, and venture financiers.
Browse the full “Real Estate Crowdfunding Market Size, Share, Growth Analysis Report By Property Type (Commercial and Residential), By Investor Type (Institutional and Individual), By Platform (Equity-based Crowdfunding, Debt-based Crowdfunding, and Others), and By Region - Global and Regional Industry Insights, Overview, Comprehensive Analysis, Trends, Statistical Research, Market Intelligence, Historical Data and Forecast 2024 – 2032” Report at https://www.fnfresearch.com/real-estate-crowdfunding-market
Moreover, real estate crowdfunding is a relatively novel concept that has aided real estate developers and firms to procure funding from a completely new group of financiers. Real estate crowdfunding tools can raise debt and equity funds from credited as well as non-accredited investors. These tools vary in terms of investment offerings, accreditation needs, and minimal investment sizes.
Report Scope
Report Attribute |
Details |
Market Size in 2023 |
USD 12.17 Billion |
Projected Market Size in 2032 |
USD 349.26 Billion |
CAGR Growth Rate |
45.2% CAGR |
Base Year |
2023 |
Forecast Years |
2024-2032 |
Key Market Players |
AHP Servicing LLC, BrickFunding, Crowdestate AS, CrowdStreet Inc., DiversyFund Inc., EstateGuru, Fundrise LLC, Groundbreaker Technologies Inc., Groundfloor Finance Inc., M2CROWD, RealCrowd Inc., ReInvest24, RM Technologies LLC, and Others. |
Key Segment |
By Property Type, By Investors Type, By Platform, and By Region |
Major Regions Covered |
North America, Europe, Asia Pacific, Latin America, and the Middle East &, Africa |
Purchase Options |
Request customized purchase options to meet your research needs. Explore purchase options |
Escalating use of crowdfunding witnessed in the commercial real estate sector to drive the market trends
The thriving commercial real estate activities across the globe have resulted in the massive need for private funding. This, in turn, has culminated in huge demand for crowdfunding activities prompting market growth. Moreover, online real estate is a majorly growing component of the commercial real estate industry and is predicted to further steer the business growth over the forecast timeline. Apparently, today fundraising activities are swiftly transiting to online mode as real estate sponsors find it more convenient and time-saving as compared to offline mode.
Furthermore, a rise in the allocation of funds for commercial real estate events in emerging economies with large-scale establishments of hospitals, clinics, and schools will further steer the expansion of the real estate crowdfunding industry over the forecast timeline.
Moreover, real estate crowdfunding has reduced fees and offers the investors a choice of selecting particular assets that help in fulfilling their particular investment choices. In addition to this, real estate crowdfunding activities have evolved as cost-effective tools for people to finance real estate assets of high-quality. All these factors will contribute lucratively towards the growth of the industry during the forecast timeline. Nonetheless, low liquidity can adversely impact the growth of the market during the forecast timeline.
Recent Developments:
- June 2022: Arrived Homes, a U.S.-based real estate investment platform, is rapidly expanding its acquisitions in response to growing demand from retail investors for fractional real estate ownership. The company has recently acquired 59 single-family rental homes across 17 markets, with a total value of USD 23 million.
- June 2022: Foxstone, an online real estate investing platform, has successfully closed its CHF 10 million Series A financing round, marking the largest funding round for the company to date.
- January 2022, Brikkapp unveiled a groundbreaking marketplace, ingeniously uniting over 200 property marketplaces from around the globe into a single, seamless platform. This pioneering tool grants users unparalleled access to an extensive array of real estate investment opportunities worldwide, all in one unified location, revolutionizing how investors explore and engage with global real estate markets.
Top Market Players
Some of the key players in the market include AHP Servicing LLC, BrickFunding, Crowdestate AS, CrowdStreet, Inc., DiversyFund, Inc., EstateGuru, Fundrise, LLC, Groundbreaker Technologies, Inc., Groundfloor Finance Inc., M2CROWD, RealCrowd, Inc., ReInvest24, RM Technologies LLC, and others.
Institutional investors to dominate the investor's segment by 2032
The growth of the segment is credited to maintaining the profiles by the institutional investors like banks, hedge & mutual funds, insurance firms, and pension funds.
Commercial segment to record highest CAGR over the forecast period
The segmental surge is credited to the massive demand for raising funds for the construction of schools, hospitals, malls, and shopping centers in the developing economies.
North America to lead the overall market growth in terms of revenue
The growth of the regional market during the forecast timeline is owing to the humungous presence of key market participants and huge crowdfunding from key financers in the region. The U.S. is expected to make a notable revenue contribution towards the North American market during the period from 2024 to 2032.
This report segments the Real Estate Crowdfunding market as follows:
By Property Type
- Commercial
- Hospitals
- Industrial Buildings
- Shopping Centers
- Schools
- Others
- Residential
By Investors Type
By Platform
- Equity-based Crowdfunding
- Debt-based Crowdfunding
- Others
Real Estate Crowdfunding Market: Regional Segment Analysis
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
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