Real Estate Crowdfunding Market

Real Estate Crowdfunding Market Size Survey Report – In a Glance

As per the survey report on global Real Estate Crowdfunding market, the market is projected to foresee a CAGR of 45.3% between 2024-2033, and further generate a market size of USD 638.7 billion by the end of 2033. In the year 2024, the market size was valued at USD 22.8 billion.

• The global Real Estate Crowdfunding market is projected to grow on account of the increase in construction activities.
• In Japan, the Real Estate Crowdfunding market growth can be attributed to the rise in the demand for online real estate crowdfunding.
• KDMI analyst’s growth analysis foresees the Risk & Regulation factor to challenge the market growth.
• North America, having the highest market share in the Real Estate Crowdfunding market is projected to dominate the global market.

Real Estate Crowdfunding Market Analysis

Analyst’s Observation on Real Estate Crowdfunding Market Survey

Real estate crowdfunding works by pooling funds from multiple investors to finance real estate projects. This process makes real estate investment more accessible to people who do not have the huge amount of money usually required for direct property investment. This concept includes using online platforms to collect funds from a large number of investors to finance real estate projects. Real estate crowdfunding is growing rapidly because of an increase in construction activities. Globally, the Real estate crowdfunding market is rapidly transforming. It's poised for extensive growth, with the market expected to reach a staggering USD 793,476.5 million by 2032. Groundbreaker Technologies Inc., RM Technologies LLC, and Profitus are some of the significant parties in the global market for Real Estate Crowdfunding.

Analyst’s Observation on Japan Real Estate Crowdfunding Market Survey

In Japan, the market growth for Real Estate Crowdfunding can be attributed to the rise in the demand for online real estate crowdfunding activities. Online real estate crowdfunding is a flexible and accessible investment option, marking a significant shift from old methods of real estate investing. Online platforms play a vital role in this process, performing mediators and connecting investors with real estate opportunities. MOH is a leading real estate crowdfunding services platform in Japan, is profitable, reporting EBITDA of JPY 519 million (c. £3.2 million) on revenues of JPY 5.6 billion (c. £34.3 million) in the year to 31 March 2023.CAMPFIRE, Emerada, and GREEN FUNDING are some of the significant parties in the market for Real Estate Crowdfunding in Japan.

Real Estate Crowdfunding Market Growth Drivers and Challenges

Growth Drivers

Massive Construction Activities: Residential & commercial construction sectors are rapidly increasing worldwide, which is propelling the expansion of the real estate crowdfunding industry. The actions in this industry, such as online real estate crowdfunding and the development of the E-commerce industry, gained traction over the decade. The union of technological advancement and economic growth has set the stage for record-breaking expansion and success in residential and commercial construction, which require very huge crowdfunding activities. By 2033, the global real estate crowdfunding market is expected to reach USD 569.2 billion. The technology and proposal of the crowdfunding platform are key points in attracting new investment opportunities.

Adoption of blockchain technology: Blockchain technology is a new database mechanism that allows transparent information sharing within a business network. A blockchain database stores data in blocks that are linked together in a chain that is shared over a computer network. In real estate crowdfunding, blockchain technology is very useful as it eliminates the need for mediators, making data more convenient and reducing the risks of cheating and fraud. Real estate crowdfunding platforms utilize blockchain technology to streamline the issuance, trading, and payment safeties issued digitally while reducing administration costs Therefore, the growing utilization of blockchain technology in the global market is expected to boost the real estate crowdfunding market in the coming years.

Restraint Factors

Risk & Regulation: Real estate crowdfunding always faces some risks, such as project delays, property vacancy, and possible cheatings, as well as fraud. Regulation of crowdfunding enables eligible companies to offer and sell securities through crowdfunding. Regulatory frameworks for crowdfunding can vary by region, requiring detailed due diligence from investors. Lack of awareness about risk and regulations hampers market growth.

Lack of Transparency: Some platforms of real estate crowdfunding do not provide complete transparency about project details, developer track records, and potential risks. In such circumstances, there are more chances of fraud gears, which hampers the real estate crowdfunding market growth. Careful platform selection and investor education are most important.

Real Estate Crowdfunding Market Segmentation

Our experts at KD Market Insights have segmented the global Real Estate Crowdfunding market research report as:

Real Estate Crowdfunding Market Regional Synopsis

North America having the highest market share in Real Estate Crowdfunding, and it is majorly driven by North America. Particularly the United States, which remains the most significant player in the real estate crowdfunding market. United State have strong investment capacity, a well-established legal framework, and a steady economic bounce to this leadership. In global terms, the United States stands as the main market both in the number of active platforms and the elevated capital. The Canadian market is growing with advanced technological platforms and a high degree of investors.

Asia Pacific is growing with fastest CAGR in the Real Estate Crowdfunding market, which is majorly driven by increasing constructions and industrialization. Considering these factors, countries such as China, India, and South Korea are leading the market growth due to their large population bases and booming real estate sectors. China leads the world with the largest construction business, driven by rapid urbanization, major infrastructure projects, and strong economic growth.

Europe is showing considerable growth in the real estate crowdfunding market with a various range of investments. Real Estate Crowdfunding market distribution by volume shows that France leads with €1.3 billion raised, followed by Germany with €629 million and Estonia with €210 million, developed as the most powerful markets in 2022.

Latin America is a developing market in the real estate crowdfunding space with the adoption of digital payment technologies. Countries such as Brazil and Argentina are seeing increased activity in real estate investments supported by crowdfunding platforms.

The Middle East and Africa are in the emerging stages of adopting real estate crowdfunding. Growing urbanization and increased residential constructions are promoting increased crowdfunding activities in real estate investment.

As per our analysts at KD Market Insights, the following five players lead North America having the highest market Share in the Real Estate Crowdfunding market growth:

• CrowdStreet
• Fundrise
• First National Realty Partners
• EquityMultiple

Real Estate Crowdfunding Market Competitive Landscape

Some of the key players who top the global Real Estate Crowdfunding market share:

• M2CROWD
• BrickFunding
• Groundbreaker Technologies Inc.
• RM Technologies LLC
• Profitus
• ReInvest24
• CrowdStreet Inc.
• Fundrise LLC
• American Homeowner Preservation LLC
• Bulkestate

1. Executive Summary
   1. Market Overview
   2. Key Findings
   3. Market Trends
   4. Market Outlook
2. Introduction
   1. Scope of the Report
   2. Research Methodology
   3. Definitions and Assumptions
   4. Acronyms and Abbreviations
3. Market Dynamics
   1. Drivers
   2. Restraints
   3. Opportunities
   4. Challenges
4. Global Real Estate Crowdfunding Market
   1. Market Overview
   2. Market Size and Forecast
   3. Market Segmentation
      1. By Investor
      2. By Model
      3. By Sector
      4. By Region
5. Market Segmentation by Investors
   1. Institutional
   2.  Individual
   3. Others
6. Market Segmentation by Model
   1. Equity
   2.  Lending
   3. Others
7. Market Segmentation by Sector
   1. Commercial & Industrial
   2. Residential
   3. Others
8. Regional Analysis
   1. North America
      1. United States
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Investor, Model, and Sector
      2. Canada
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Investor, Model, and Sector
      3. Mexico
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Investor, Model, and Sector
   2. Europe
      1. United Kingdom
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Investor, Model, and Sector
      2. Germany
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Investor, Model, and Sector
      3. France
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Investor, Model, and Sector
      4. Italy
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Investor, Model, and Sector
      5. Spain
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Investor, Model, and Sector
      6. Rest of Europe
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Investor, Model, and Sector
   3. Asia Pacific
      1. China
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Investor, Model, and Sector
      2. Japan
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Investor, Model, and Sector
      3. India
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Investor, Model, and Sector
      4. Australia
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Investor, Model, and Sector
      5. South Korea
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Investor, Model, and Sector
      6. Rest of Asia Pacific
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Investor, Model, and Sector
   4. Latin America
      1. Brazil
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Investor, Model, and Sector
      2. Argentina
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Investor, Model, and Sector
      3. Colombia
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Investor, Model, and Sector
      4. Rest of Latin America
         1. Market Size and Forecast
         2. Key Trends and Developments
         3.               Market Analysis by Investor, Model, and Sector
   5. Middle East & Africa
      1. South Africa
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Investor, Model, and Sector
      2. Saudi Arabia
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Investor, Model, and Sector
      3. UAE
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Investor, Model, and Sector
      4. Rest of Middle East & Africa
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Investor, Model, and Sector
9. Competitive Landscape
   1. Market Share Analysis
   2. Company Profiles
      1. All Company Names
         1. M2CROWD
         2. BrickFunding
         3. Groundbreaker Technologies Inc.
         4. RM Technologies LLC
         5. Profitus
         6. ReInvest24
         7. CrowdStreet Inc.
         8. Fundrise LLC
         9. American Homeowner Preservation LLC
         10. Bulkestate
10. Strategic Recommendations
11. Appendix
    1. List of Tables
    2. List of Figures
12. References