As per the current market research conducted by the CMI Team, the global Real Estate Crowdfunding Investment Market size is expected to record a CAGR of 46.5% from 2024 to 2033. In 2024, the market size is projected to reach a valuation of USD 17.8 Billion. By 2033, the valuation is anticipated to reach USD 569.2 Billion.

Real Estate Crowdfunding Investment Market: Overview

According to industry experts at CMI, real estate crowdfunding investment is a method of investing in real estate via digital platforms. Multiple investors pool their funds to finance real estate projects in this investment.

The real estate crowdfunding investment market is driven by several factors, including growing technological advancements, increasing disposable income of the population, growing urbanization, the emergence of blockchain technology and others.

However, the regulatory uncertainty and the lack of liquidity might pose a major challenge for the market expansion during the forecast period.

Real Estate Crowdfunding Investment Market: Growth Factors and Dynamics

Growing real estate sector

The growing real estate sector is one of the major factors propelling the expansion of the real estate crowdfunding investment market over the projected period. This has been led by the rising urbanization, housing constraints and increasing demand for commercial space.

These platforms support residential and rental properties and align with sustainable development and affordable housing trends.

Implementation of blockchain technology

Implementing blockchain technology drives industry growth, making real estate transactions easier and faster. The technology is rapidly being adopted to develop smart contracts and tokenization. Blockchain-powered real estate crowdfunding features a regulated, decentralized listing, property financing, and management platform.

It uses the blockchain to reorganize rental contracts, assets, property task management, purchase/sale contracts, and related services. They allow investors and owners to and securely share funds and information, streamlining peer-to-peer project funding and reorganizing real estate requirements. They also facilitate information management, reduce fraud and deception and aid in eliminating middlemen. Furthermore, the blockchain-based real estate crowdfunding platform streamlines the risk assessment and investment process.

Platform reliability and trust issues

Due diligence, transparency, and vetting processes for real estate ventures might differ significantly between platforms. Some platforms offer in-depth analysis, verified data, and independent appraisals, while others may lack extensive inspections, posing serious risks to investors.

The absence of standards makes it difficult for investors to assess the reliability of various platforms. Additionally, the financial viability of crowdfunding sites is critical. Platforms with inadequate financial frameworks or poor management are at risk of insolvency, exposing investor funds.

Investors are becoming more conscious of this risk, as certain platforms have abruptly quit the market, resulting in financial losses and difficulty in retrieving assets. Therefore, the platform reliability and trust issues hamper market expansion.

Report Scope

Feature of the ReportDetails
Market Size in 2024USD 17.8 Billion
Projected Market Size in 2033USD 569.2 Billion
Market Size in 2023USD 12.5 Billion
CAGR Growth Rate46.5% CAGR
Base Year2023
Forecast Period2024-2033
Key SegmentBy Property Type, Investor Type, Platform and Region
Report CoverageRevenue Estimation and Forecast, Company Profile, Competitive Landscape, Growth Factors and Recent Trends
Regional ScopeNorth America, Europe, Asia Pacific, Middle East & Africa, and South & Central America
Buying OptionsRequest tailored purchasing options to fulfil your research requirements.

Real Estate Crowdfunding Investment Market: New Launches and Acquisitions

  • In June 2022, Foxstone, an online real estate investing platform, completed its CHF 10 million Series A financing round.

List of the prominent players in the Real Estate Crowdfunding Investment Market:

  • AHP Servicing LLC
  • BrickFunding
  • Crowdestate AS
  • CrowdStreet Inc.
  • DiversyFund Inc.
  • EstateGuru
  • Fundrise LLC
  • Groundbreaker Technologies Inc.
  • Groundfloor Finance Inc.
  • M2CROWD
  • RealCrowd Inc.
  • ReInvest24
  • RM Technologies LLC
  • Others

Global Real Estate Crowdfunding Investment Market 2024–2033 (By Billion)

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The Real Estate Crowdfunding Investment Market is segmented as follows:

By Property Type

  • Commercial
  • Residential

By Investor Type

  • Institutional
  • Individual

By Platform

  • Equity-based Crowdfunding
  • Debt-based Crowdfunding
  • Others

Regional Coverage:

North America

  • U.S.
  • Canada
  • Mexico
  • Rest of North America

Europe

  • Germany
  • France
  • U.K.
  • Russia
  • Italy
  • Spain
  • Netherlands
  • Rest of Europe

Asia Pacific

  • China
  • Japan
  • India
  • New Zealand
  • Australia
  • South Korea
  • Taiwan
  • Rest of Asia Pacific

The Middle East & Africa

  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa

Latin America

  • Brazil
  • Argentina
  • Rest of Latin America