5 Real Estate Crowdfunding Stats That Will Make You Invest
May 25, 2017
Crowdfunding for real estate is fast becoming one of the most popular applications of the crowdfunding revolution. Unlike other areas of the new sharing economy (e.g. donations-based crowdfunding or ride-sharing), investing via Real Estate Crowdfunding is one of the only versions of the democratized economy that allows regular people to access a previously exclusive part of the financial sector; at the same time, Real Estate Crowdfunding also provides opportunities for existing professional/institutional investors to take advantage of Real Estate Crowdfunding’s ability to maximise portfolio diversification (predominantly due to its ease of use and low investment costs).
This makes equity crowdfunding one of the most diverse iterations of crowdfunding to date, one that can be used by all investor types; while first-time investors are using Real Estate Crowdfunding to begin saving for their pension, professional investors can use it to defend against portfolio imbalances. Santander, for instance, are even partnering with a leading UK equity crowdfunding platform to provide money for social projects.
But Real Estate Crowdfunding is not only popular because it provides opportunities for new types of investors, it is also popular because of the potential it has to deliver healthy, secure returns. Crowdfunding for real estate allows investors to put money into properties in the most profitable locations across the world, while at the same time benefitting from the ability to spread the investment across multiple properties.
To demonstrate this, here are a few statistics on crowdfunding in the real estate sector:
1. The Real Estate Crowdfunding industry grew by 156% in 2014, at that time being valued at around $1 billion
2. In 2016, Real Estate Crowdfunding grew to a valuation of around $3.5 billion, making it one of the fastest growing branches of the crowdfunding sector
3. It is predicted that Real Estate Crowdfunding will expand to reach $5.5billion by the end of 2017
4. The World Bank predicts that by 2025 the crowdfunding industry as a whole will be worth $93 billion
5. Real Estate Crowdfunding campaigns have ranged from $100,000 to over $25 million, meaning that there is an option for all budget sizes and investment types
Properties Open for Investment
Two bedroom two bathroom apartment in a unique residential development, the Wohnresidenz Zögernitz, located in the heart of Vienna’s popular 19th Döbling district.
5-2 Wohnresidenz Zogernitz, Vienna
Vienna, Austria
Estimated Annual Return* 1.8% - 3.8%
Estimated Average Annual Return* 1.8% - 3.8%
Investment Period 4 years
0% Funded € 0
Target € 760,000
Detroit, United States of America
Detroit, United States of America
Estimated Avg. Annual Return*
11.1% - 13.1%
Property TypeSingle Family Home
Total Cost of PropertyUS$ 84,550
Investment Period4 years
Estimated Avg. Annual Return*11.1% - 13.1%
Total InvestedUS$ 50,729
60% Funded US$ 50,729
Target US$ 84,550
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Apt. 7o2A, Corsega 60, Barcelona
Barcelona, Spain
Apt. 7o2A, Corsega 60, Barcelona
Barcelona, Spain
Estimated Avg. Annual Return*
8.8% - 10.8%
Property TypeApartment
Total Cost of Property€ 432,600
Investment Period4 years
Estimated Avg. Annual Return*8.8% - 10.8%
Total Invested€ 426,236
99% Funded € 426,236
Target € 432,600
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*This amount is an estimate and should not be considered a guaranteed figure. The value of your investment can go up as well as down. In most circumstances the maximum duration of an investment will be 4 years.
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