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.