We believe 2021 is going to be a great year for real estate crowdfunding, despite the ongoing challenges investors across the world are facing. And it seems we’re not the only ones to think this way. We’ve highlighted just four of the top reasons why real estate crowdfunding’s popularity is likely to grow even more in 2021.
1.- The real estate market has remained strong
Some areas of real estate, including leisure, retail and office properties, have been badly affected by recent events. But it seems residential buildings, which have turned from places of rest into offices, classrooms and entertainment hubs, have not suffered the same fate.
CBRE says that “residential property has been the surprise outperformer of the pandemic” in the UK and that in “many parts of the EMEA market, [residential property] values have remained surprisingly resilient”. Despite an economic downturn in virtually every country, it’s clear that comfortable homes are still a big priority for people across the globe.
2.- It’s an investment style that’s growing exponentially
A report by Facts and Figures in 2018 found that the international real estate crowdfunding market is expected to grow in value by a phenomenal 6479%, from $13 billion in 2018 to $869 billion by 2027. Its compound annual growth rate (CAGR) is also predicted to reach an impressive 58.3% by 2027.
Though the pandemic has likely dented these predictions a little, it’s clear there’s still plenty of potential in this emerging market. With Bricksave, anyone is welcome to invest. You can get started with as little as $1,000, as our platform is open to investors from every kind of background, and own part of a property in some of the most sought-after areas in the world.
3.- There’s investor appetite for steady returns
After the stock market somersaults of 2020, smaller investors are likely to be seeking a relative safe haven for their money that still gives it a chance to grow. Though no investment style is risk free and there’s always a chance you could lose money as well as gain it, Millionacres calls real estate “the best performing investment in modern history”. If your confidence in investing has been shaken and you’re looking for a more stable place for your cash, property could be the right choice.
Real estate crowdfunding is an accessible way for anyone to grab a slice of this potentially lucrative investment sector. While the actual returns you enjoy will vary depending on the market and specific property you choose to invest in, research estimates average returns from similar models to be between 11-15%.
4.- Major publications are recognising its value
Though property crowdfunding has only become mainstream in the last decade, they’re already filling pages in major publications. Forbes described the investment style’s future as “bright” even after taking the impact of the pandemic into consideration. Investopedia ranked its top real estate crowdfunding platforms and said the strategy gives “everyday investors access to assets that have traditionally been reserved for the wealthy”.
Even the Motley Fool, an online content hub for serious investors, said that real estate crowdfunding has removed the unfair barriers to investing in real estate for most, meaning “it’s possible to build real wealth through real estate at a fraction of what it used to cost”.
Find out more about Bricksave and start your investment journey today.
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