The Global Real Estate Crowdfunding Market size was estimated at USD 1.67 Billion in 2021 and is expected to hit around USD 5.53 Bn by 2030, at a CAGR of 16.8% during the forecast period from 2022 to 2030.
A prominent element influencing the market expansion is the surge in crowdfunding activities on social media platforms to boost demand and visibility of future projects. As a way to raise money by soliciting investor donations, social media sites like Twitter, Reddit, Facebook, Instagram, and LinkedIn are becoming increasingly popular. A significant driver in the market's expansion is using artificial intelligence (AI), machine learning technologies in crowdfunding platforms, which are rapidly evolving technologically.
Many global crowdfunding platform providers are concentrating on growing their presence to assist fledgling businesses in obtaining capital from investors. Additionally, governments everywhere are enthusiastic about promoting new products linked to crowdfunding platforms, which helps the market expand. To boost entrepreneurship in Dubai, for instance, government representatives in Dubai assisted in creating Dubai Next, a crowdfunding platform, in May 2021. The crowdfunding website assisted Emiratis in launching their own enterprises in Dubai by supporting their innovative ideas and projects.
A ground-breaking idea in the investment world, real estate crowdfunding offers people a creative method to get involved in the profitable real estate sector. Investors now have access to a wide variety of crowd funded real estate options thanks to specialized real estate crowdfunding platforms. These websites serve as real estate investing platforms, enabling users to combine their money and buy a variety of properties. Real estate crowdfunding platforms have opened up a new way for investors to diversify their portfolios and take advantage of the potential rewards provided by the real estate market by utilizing the power of collective funding. Real estate crowdfunding has democratized access to the hitherto privileged world of real estate investing, making it more inclusive and accessible for a wider spectrum of investors, whether they are investing in residential, commercial, or industrial properties.
Market Dynamics
Drivers:
The market is expanding due to the increasing use of AI, Blockchain, and machine learning technologies by crowdfunding platforms to allay investor fears. Crowdfunding platforms use AI tools to assist users in starting online campaigns, forecasting investor behavior, producing original content, identifying fraud, displaying targeted adverts, and confirming the campaigners' identities. In order to help activists swiftly establish campaigns and find financing, crowdfunding companies have begun experimenting with AI-driven chatbots. Over the course of the projection period, market participants are anticipated to benefit from these technological adoptions' lucrative growth potential.
Successful crowdfunding campaigns are also being used in the gaming sector to raise money. For instance, in 2020, Kickstarter raised USD 23 million from its own crowdfunding site for video game projects. However, the absence of a regulatory framework for safe transactions on crowdfunding platforms might serve as a market growth inhibitor. Financial regulators worldwide are working to improve awareness of the cutting-edge crowdfunding platforms among fundraisers, which will help the business expand.
Key players:
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Kickstarter, PBC
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Indiegogo, Inc.
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GoFundMe
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Fundable
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Crowdcube
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SeedInvest Technology, LLC
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Fundly
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RealCrowd
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RM Technologies LLC.
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Wefunder
Real Estate Crowdfunding Market, By Type
Real Estate Crowdfunding Market, By Application
Real Estate Crowdfunding Market, By Region
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North America
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Europe
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Asia-Pacific
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Latin America
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Middle East & Africa (MEA)
Regional Analysis:
Over the course of the projected period, the Asia Pacific region is anticipated to have the quickest growth. The expansion of the internet in the region, which makes crowdfunding platforms more accessible, is responsible for the regional increase. Additionally, the development of online crowdfunding platforms is being accelerated by strong economic conditions and a rise in digitization, which are both contributing to the expansion of the Asia Pacific market. Additionally, the presence of a number of crowdfunding websites in this area, including Wujudkan.com, ArtisteConnect.com, pitchIN.my, and ToGather.Asia, presents significant growth prospects for the regional market.
Scope of the Report:
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Report Coverage |
Details |
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Base year |
2021 |
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Forecast period |
2030 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 16.8% |
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YoY growth (%) |
XX% |
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Regional analysis |
North America, Asia Pacific, Europe, Latin America, the Middle East, and Africa |
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Current Market size |
USD 1.67 Billion |
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Forecast market growth |
USD 5.53 Billion |
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Introduction
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Market Size Estimation
The overall size of the market has been estimated and validated using both top-down and bottom-up methods. The sizes of other market subsegments have also been thoroughly estimated using these methodologies.
In the top-down technique, the market is divided into segments based on the percentage share of each segment. This method assisted in determining the size of each segment's market. The market size of each segment and its sub-segments was then divided into regional market sizes. This Approach helps mainly with the new Product Launch. It uses Multi-variate Regression Model coupled with Vendor based primary research inputs to forecast to the Market Size.
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