The global market value of the real estate crowdfunding
market was USD 15.1 billion in 2022, and a CAGR of 51.1% is expected during the
forecast period. Increasing demand by the people for stable investment
opportunities, the advantage of diversification, and the potential for high
returns are the factors growing the market significantly during the forecast
period. Lower barriers to entry and technological advancements facilitating
easier investment and a good return process have propelled growth in the market.
Regulatory changes supporting this market have also contributed to the
significant growth during the forecast period. India and China, due to their
large populations and good available land, are the key markets in this
endeavor. FundRise is the best real estate crowdfunding platform due to its
high level of transparency and low costs.
COVID-19 has badly hampered the real estate market. Due
to economic uncertainty during that time, people were completely reluctant to
invest money in any such sector. They were only bothered about the essential
goods. It also led to an increase in interest in online investment platforms as
traditional methods faced limitations. Investors sought more diversified
portfolios, and certain sectors, like residential properties or essential
commercial spaces, gained traction due to changing market demands. Overall, it
was a temporary dip, and the market keeps on growing in the long run during the
forecast period. COVID-19 brought a dip in the real estate crowdfunding market.
The remote work culture had also affected the growth of the real estate
Increasing access for smaller investors and the
potential for high returns are driving the growth in this market. The real
estate market was on boom before the pandemic, and now, after the pandemic,
this market is witnessing significant growth due to the increasing interest of
people in residential properties. Residential properties have remained the most
lucrative option for people to invest in. Residential real estate crowdfunding
platforms have witnessed 84% growth during the forecast period. In comparison
to traditional investments, high returns are possible. Regulatory changes
allowing for easier crowdfunding participation have also driven its growth. Due
to the improvement of user-friendly online platforms, investors now have pretty
easy access to suitable residential or commercial properties.
Increasing technological advancements and the
increasing popularity of real estate as a big business opportunity for
investors are driving the growth in this market. The adoption of many
beneficial government policies in many countries is also propelling the growth
of the market. Increasing disposable income in all developed countries and in developing
nations like India and China is witnessing substantial growth in the market.
Real estate’s market future is complex and depends on numerous factors. Factors
like interest rates, employment rates, and GDP growth impact housing demand and
affordability. Changes in population size, age, and household formation affect
housing needs and preferences. Innovations in construction, smart homes, and
remote work reshape housing demand and design. Regulations, tax laws, and
housing initiatives do impact buying, selling, and renting patterns. Climate
change and sustainability concerns influence location preferences and
Middle East and
Real Estate Crowdfunding Market Property Type Segmentation
On the basis of property type, the real estate crowdfunding market is segmented into residential property and commercial property. Residential properties are a leading segment, offering lucrative opportunities for investors in North America, Europe, and the Asia-Pacific region. It provides an opportunity for investors to invest in property without buying it. Investors pool funds to buy, manage, and profit from residential real estate, often through online platforms. It offers diversification and lowers entry barriers.
Commercial properties are also known as commercial real estate and are intended to generate a profit either from capital gains or rental income. In many U.S. states, residential property containing more than a certain number of units qualifies as commercial property for borrowing and tax purposes. Increasing technological advancements in the real estate crowdfunding market are inclining the market towards growth. Increasing access and scope for small investors is even driving the growth in the market. Singapore and Malaysia are hubs for real estate in the Asia-Pacific region.
On the basis of
the regions, the real estate crowdfunding market is segmented into 5 regions:
Asia Pacific, North America, Europe, Latin America, and the Middle East and
Africa. North America is leading the market, followed by Europe due to
technological advancements and better infrastructure in comparison to the rest
of the world. Countries like the U.S.A., Canada, Germany, England, Spain,
Italy, and France are the leading markets. Increasing investor awareness in
countries like China and India is growing the market significantly during the
forecast period. Expanding the market’s platform, investor confidence, and
market maturity are driving the growth in the market.
In the Asia-Pacific
region, real estate crowdfunding businesses have been gaining traction in
countries like Australia, China, and Singapore. The rising middle-class
population and increasing disposable income in this region have increased the
scope of the market in Japan and India as well. European real estate
crowd-funding has experienced substantial growth in recent years. Factors
contributing to the growth include favorable regulatory changes, low interest
rates, tech innovation, and a desire for diversification among investors.
Differences in regulations and market maturity are driving growth in countries
like France, Germany, Spain, Italy, and England.
Singapore and India in the
Asia Pacific region are the big markets, witnessing growth in the market. The
key factors driving growth in the market are the presence of key players.
Europe in particular is a region of immense popularity. Europe, especially
western Europe, including countries like Germany, France, Spain, Italy, and
England, is providing an opportunity for investors to invest and earn in an
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