Real Estate Crowdfunding Market Trends

Growth Drivers

Prevalence of Blockchain Technology - With the use of Blockchain technology, transactions in real estate have become more easy and rapid. In order to develop smart contracts and tokenization, blockchain technology is rapidly being used. The regulatory, decentralized listing of assets and property financing as well as the platform management are included in Blockchain real estate crowdfunding.
Increase in Construction Activities - The sector of real estate has seen a substantial increase over the last few years, where there has been an increased number of business property developments including construction and other elements like clinics, apartments, or schools. The construction industry is estimated to constitute 13% of global GDP by 2030 as a result, it is becoming more and more necessary to set aside resources for promoting such events in order to promote the growth of crowdfunding platforms over the coming years.
Diversifying and accessing lucrative investment opportunities- By investing in several real estate projects with a small amount of money, real estate crowdfunding allows investors to diversify their portfolios. Real estate crowdfunding platforms provides a platform for all individual irrespective of income, providing lucrative opportunities for all individuals

Challenges

Platform risks and due diligence - There are a number of platforms available for financing real estate each with its own distinctive characteristics and features. However, there is uncertainty over the investment returns.
Cyclical, and susceptible to a number of variables, including interest rates, and economic conditions.
Lack of liquidity makes it difficult for investors to access their capital when needed.

Real Estate Crowdfunding Market: Key Insights

Crowdfunding is a new and revolutionary way for business owners to raise money for their business, not by asking one investor for a huge investment, but by reaching out to a large pool of small investors who contribute a small amount of money in real estate projects. Before the jumpstart our business startups (JOBS) act of 2012, investing in real estate was conducted only by investing in physical properties or investing in real estate investment trusts (REITs). With the growing awareness for crowdfunding platforms amongst the investors, they can now buy a portion of the real-assets instead of buying the whole property. Moreover, backed by the growing digitalization, along with the proliferation of advanced technologies in the real estate industry, real estate firms have shifted their preferences from the traditional way of raising large-scale investments by increasingly preferring digital funding procurement methods and other real estate crowdfunding tools that focuses on crowdsourcing for funding the commercial real estate projects. Consecutively, the increasing adoption of blockchain for private funding in commercial real estate activities is further projected to have a significant influence on the growth of the global real estate crowdfunding market during the forecast period. The market is further forecasted to cross USD 113,000 million by the end of 2021.

Base Year	2024
Forecast Year	2025-2037
CAGR	45.1%
Base Year Market Size (2024)	USD 16.24 billion
Forecast Year Market Size (2037)	USD 2.05 trillion
Regional Scope	North America (U.S., and Canada) Latin America (Mexico, Argentina, Rest of Latin America) Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific) Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe) Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)

What are the factors driving the real estate crowdfunding landscape?

The real estate crowdfunding market size was over USD 16.24 billion in 2024 and is poised to exceed USD 2.05 trillion by the end of 2037, witnessing over 45.1% CAGR during the forecast period i.e., between 2025-2037. Increase in construction activities, prevalence of blockchain technology and Diversifying and accessing lucrative investment opportunities will boost the market growth.

Who are the key players in the real estate crowdfunding sector?

The major players in the market are RM Technologies LLC., Trinity Investors, Groundbreaker, Groundfloor, Neighborhood Ventures, DiversyFund, Inc., Estateguru, AHP Servicing LLC, crowdestate.eu, Fundrise, LLC and others.

Real Estate Crowdfunding Market Trends