The global real estate crowdfunding market recorded a value of $121 billion in 2019 and $851 billion by the end of 2028 growing at a CAGR of 33.4% during the forecast period, i.e., it is expected that 2020 -2028 see an increase in revenue.
Increasing industrialization across the globe driving commercial real estate activity and favorable regulation of real estate crowdfunding by the governments of various countries around the world are expected to drive market growth during the forecast period, some of the elements significant.
In addition, the increasing trend of Bitcoin cryptocurrency adoption by real estate crowdfunding platforms is also expected to fuel the growth of the market in the coming years.
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Overview of the global real estate crowdfunding market
Crowdfunding helps businesses grow by reaching large groups of small investors who contribute small sums of money to real estate projects, rather than business owners asking one investor to invest a large sum of money. Prior to the enactment of the Company’s JOBS Act of 2012, real estate investments could only be made through property investments or real estate investment trusts (REITs).
As investors become more aware of crowdfunding platforms, they are now able to purchase a portion of real property instead of buying the entire property. In addition, driven by the increasing digitization of the real estate industry with the diffusion of advanced technology, Real estate companies are turning to crowdsourcing-focused digital financing methods to finance commercial real estate projects, as well as other real estate financing methods. the preference for crowdfunding tools has changed their tastes with respect to traditional methods of raising large investments.
The increasing adoption of blockchain for private financing in commercial real estate activities is anticipated to have a significant impact on the growth of the global real estate crowdfunding market during the forecast period. Furthermore, the market is projected to surpass $113 billion by the end of 2021. The increasing adoption of blockchain for private financing in commercial real estate activities is anticipated to have a significant impact on the growth of the global real estate crowdfunding market during the forecast period.
Furthermore, the market is projected to surpass $113 billion by the end of 2021. The increasing adoption of blockchain for private financing in commercial real estate activities is anticipated to have a significant impact on the growth of the global real estate crowdfunding market during the forecast period. Furthermore, the market is projected to surpass $113 billion by the end of 2021.
Regional Growth Highlights 2019-2028
The global real estate crowdfunding market is segmented by regions: North America, Latin America, Asia Pacific, Middle East, and Africa. Among these regional markets, the Asia-Pacific market is projected to have the largest market share of 53.20% by the end of 2021. Market growth in this region can be primarily attributed to increased commercial real estate activity in the region supported by the growing industrialization and, therefore, the need to finance different real estate projects.
On the other hand, the North American market is mainly driven by countries like the United States and Canada, where the US market accounted for the largest share in 2019. The Canadian real estate crowdfunding market is anticipated to experience significant growth in the coming years due to the increasing development of commercial real estate along with increased awareness among people of crowdfunding platforms.
The European real estate crowdfunding market is mainly driven by countries such as the United Kingdom, Germany, Italy, and Spain. Among these regional markets, the UK property crowdfunding market recorded the highest share of 41.5% in 2019, mainly due to increased investment in property debt and expected high returns from the property sector. through crowdfunding platforms in the real estate sector supported by the favorable regulatory environment in the region.
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First published in blogsasuna. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
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