From $19 million in 2012 to an estimated $3.5 billion in 2016, the real estate crowdfunding sector is amongst the most active of the global alternative finance industry. Some even expect it to represent more than $300 billion by 2025. Impressive as this figure might seem, it is well within reach as real estate crowdfunding only represents a fraction of the global real estate market.
In 2015 for instance, the $1.5 billion of the US digital real estate market accounted for 60% of the activity globally, and this while representing only 0.3% of all real estate transactions in the country. The predominance of the US can be partly explained by the housing crash of 2007 that drove property prices down, followed by the JOBS act that paved the way for the emergence of alternative financing mechanisms to ward off the credit crunch. Naturally, leading real estate crowdfunding platforms are well-placed to benefit from this situation, but upstart firms also have room to grow and many niche segments have yet to be impacted by this shift.
Several trends are expected to drive the growth of the global real estate crowdfunding industry in 2017:
At Crowd Valley (A Grow VC Group company), we have been actively following the global emergence and expansion of real estate crowdfunding. We’ve also assisted many clients in the creation of their own platforms, in all the major markets and across many types of asset classes. Any interested party shouldn’t hesitate to get in touch with us to benefit from our expertise in this growing industry.
Est. 2009 Grow VC Group is the global leader of fintech innovations, digital and distributed finance services. Our mission is to make the finance services more effective, transparent and democratic. The Group includes leading fintech companies in their own areas.
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