Real Estate Crowdfunding is the Hot Sector

By Irene Tordera, From the last Global Crowdfunding Market report published by Crowd Valley, real estate crowdfunding emerged as one of the main trends worldwide. As the image on the left shows, in Q1 2014, real estate was the asset type whose demand by Crowd Valley’s potential clients has increased the most compared to previous quarters, passing from 19% in Q4 2013 to 30% in the first quarter of the present year.

resize

This impressive growth of real estate crowdfunding was also recently confirmed by the crowdfunding research department of the University of California at Berkeley, which defined it as the “hottest sector” at the moment. The Wall Street Journal  has calculated that real estate crowdfunding platforms in the US have already raised more than “$ 135 million in debt and equity for real-estate deals”. Even though the phenomenon is much more spread in the USA, where the total market value of publicly traded real-estate investment trusts is over $700 billion, Crowd Valley observed an increase in the demand for real estate crowdfunding platforms also in other countries.Why is real estate crowdfunding so hot? First, real estate crowdfunding has a big advantage compared to, for example, private companies crowdfunding: it is a tangible asset, easier to evaluate than startups, as no very specific skill is required and just by visiting the property one can fairly enough assess its value. Second, it provides a collateral to the investment, which makes it a more appealing investment to more risk-averse investors. Third, it is easy to build a diversified investment portfolio, just by participating in deals located in different cities around the world. For example, Crowdbaron, a real estate crowdfunding platform, part of the Grow VC Group, allows its users to easily invest in properties from all around the world.Deals listed on real estate crowdfunding platforms are various enough to attract different profiles of investors. However most of the platforms are targeting accredited investors and high net worth individuals. As soon as national regulations for securities crowdfunding become effective, we expect a further increase in real estate crowdfunding, as anyone will be able to invest even small amounts into real estate development. Whether real estate crowdfunding will substitute completely offline real estate investments is something we will only find out with time, but, as Crowd Valley already mentioned in other occasions, crowdfunding brings along to existing sectors, such as real estate, a unique possibility to revolutionize their businesses, by increasing their cost-efficiency and transparency.
Source http://www.crowdvalley.com/news/the-hottest-sector-real-estate-crowdfunding

Tags: , , ,

HEADLINE NEWS

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news [...]

NPRAfter Outcry, Crowdfunding Site Patreon Backs Off Plan To Raise ...NPRThe popular crowdfunding service Patreon has backed off plans to change its payment structure, after widespread, vocal and passionate opposition from creators and their fans. Last week, the site announced it woul [...]

ForbesCrowdfunding Do's And Dont's From iFundWomen's Karen CahnForbesDuring our conversation, she was transparent in sharing that her first software company, VProud, failed because she “did everything backwards” and spent too much time trying to perfect the product. “Pe [...]

TechCrunchHow hate speech crowdfunding outfit Hatreon crept back online ...TechCrunchIf you want to make a living creating white supremacist content, you're probably not going to do it via sites like Kickstarter and Patreon, which prohibit hate speech. Fortunately there's Ha [...]

Aberdeen Evening ExpressFierce Beer smash crowdfunding target in bid to open first bar in AberdeenAberdeen Evening ExpressAn Aberdeen brewery has hailed the “incredible” response to a crowdfunding campaign after it smashed the original £60,000 target in just 24 hours. The Evening Expr [...]

EntrepreneurWhy Some Small Business Owners Are Turning to Crowdfunding to Save Their CompanyEntrepreneurMany owners of beloved local businesses, especially in pricier cities, have been forced to swallow their pride and appeal to their customers in times of crisis -- a process streamli [...]

Japan TodayZoo starts crowdfunding campaign to protect endangered birdJapan TodayA Toyama zoo has launched a crowdfunding campaign to collect funds to protect an endangered Japanese bird designated as one the nation's special natural treasures. To supplement funding from the stat [...]

Crowdfunding For French CastlesNPRYou too can own a French chateau, in part, anyway. Romain Delaume, CEO of Dartagnans, tells NPR's Scott Simon about a crowdfunding effort underway to preserve La Mothe-Chandeniers. SCOTT SIMON, HOST: What if I told you that for about $60, you cou [...]

Born2InvestHere are the latest updates on the crowdfunding industryBorn2InvestWhen pressed for the reason behind the move, the company pointed to their charter which states that Kickstarter is committed to the arts and creative projects. Another provision in the charter shows that the [...]

TechCrunchFormer Gawker employees are crowdfunding an effort to buy Gawker.comTechCrunchWhile Univision acquired most of Gawker Media's sites last year (and renamed them as the Gizmodo Media Group), the deal didn't include Gawker itself. In fact, BuzzFeed reported last month [...]

CFB Finance

Marketwired

  • Crowdfunding
  • Crowdfund
  • Peer to Peer Lending
  • FinTech
  • Reg A+
  • Reg CF
  • Crowdfunding USA

Press Release

Live Crowdfunding .tv

What's Next Step in Regulation A+ JOBS ACTS Title IIII :L Interview : Steve Cinelli with Brian Korn Securities and Crowdfunding/Peer-to-Peer Lending Lawyer, Watch more video library | Conference | Interview | Campaign Showcase | Research | Education |