Real estate crowdfunding is a new and revolutionary way for business owners to raise money for their business. The process involves reaching out to a large pool of small investors who contribute a small amount of money in real estate projects instead of asking one investor for a huge investment. The global real estate crowdfunding market registered is anticipated to grow with a magnificent CAGR of 33.4% during the forecast period, i.e., 2020-2028. Factors such as the rising number of real estate activities, along with the increasing favorable regulations of government of nations worldwide for crowdfunding in the real estate sector, are anticipated to contribute to the market growth during the forecast period. Additionally, factors such as the growing adoption of IT technologies, such as blockchain, artificial intelligence, machine learning and others, in the real estate sector for sourcing funds, coupled with the increasing globalization and industrialization, and the favorable government initiatives for crowdfunding, are anticipated to drive the market growth in the coming years.
The global real estate crowdfunding market consists of numerous segments, which are segmented by investors, model, real estate sector, and by region. The crowdfunding model segment is further bifurcated into lending and equity crowdfunding. Out of these segments, the lending crowdfunding segment registered the largest market share in the year 2019. In addition, the real estate sector segment is further bifurcated into residential and commercial sectors. Out of these segments, the residential sector is projected to grab the largest market share by the end of 2021.
Based on region, the global real estate crowdfunding market is segmented into North America, Latin America, Europe, Asia Pacific, and the Middle East & Africa, out of which, the market in North America is projected to hold the second largest share of close to 30% by the end of 2021, and is primarily driven by nations such as the United States and Canada.
Some of the prominent players in the global real estate crowdfunding market are CrowdStreet, Inc., RM Technologies LLC, RealCrowd, Inc., Groundbreaker Technologies, Inc., Groundfloor Finance Inc., DiversyFund, Inc., EstateGuru OÜ, AHP Servicing LLC, Crowdestate AS, and Fundrise, LLC.
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Companies Mentioned
- CrowdStreet Inc.
- RM Technologies LLC
- RealCrowd Inc.
- Groundbreaker Technologies Inc.
- Groundfloor Finance Inc.
- DiversyFund Inc.
- EstateGuru OÜ
- AHP Servicing LLC
- Crowdestate AS
- Fundrise LLC.