The global real estate crowdfunding market reached $11.5 billion in 2022 and is being forecast to reach $161.8 billion by 2030 with a compound annual growth rate (CAGR) of 45.9%, according to a new report from Vantage Market Research.
The report noted residential real estate crowdfunding platforms were the most popular, recording an 84% increase in investment activity compared to the previous year. North America has generated more than 36% of revenue share in 2022, but the Asia Pacific and European regions are expected to expand at the fastest CAGR between 2023 and 2032.
“The development of the real estate crowdfunding market is significantly influenced by economic variables such as interest rates, inflation, and employment levels,” the report stated. “When the economy is doing well, investors are more likely to direct their money toward real estate projects, which promotes market expansion.”
The report added that the “development of international crowdfunding platforms, which give investors access to real estate opportunities all over the world, is one significant trend. A further change in the market is a move towards fractional ownership models, in which investors can own a portion rather than the entire asset. Additionally, the use of blockchain technology is gaining popularity and will increase the security, efficiency, and transparency of real estate crowdfunding transactions.”
However, the report also observed there were “regulatory obstacles and limitations that may restrict the market’s expansion. For instance, some nations have strict laws governing crowdfunding that make it challenging for platforms to function. Additionally, laws may differ between different countries, creating uncertainty and complicated legal issues for those who participate in the real estate crowdfunding market.”