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.


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.

Tags: , , ,


Jamaica GleanerPointers to Publishing | Consider crowdfunding to finance your bookJamaica GleanerYou have great ideas but do not have the funds, or you do not want to take the risk of taking a loan or asking for financial support from family. Crowdfunding might be your best bet, and t [...]

The VergeDonald Trump's terrible crowdfunding site was a microcosm of his political careerThe VergeAnd from the beginning, the site had Trump's populist edge. Zanker boasted that “the reign of Kickstarter's Brooklyn hipsters is over,” referring to Kickstarter's New [...]

FortuneCrowdfunding: Women Better at Raising Money Than Men Are ...FortuneA new study has found that women are generally better than men at crowdfunding.Women are better at crowdfunding than men, shows study | The ...The Independentall 3 news articles » [...]

Social media, crowdfunding skirmishes encapsulate Endy debateThe Herald JournalAfter that, a campaign with the same goals and the same organizer appeared on a separate crowdfunding site, This campaign also drew negative attention on social media, and after a few hours th [...]

ForbesWhy Crowdfunding Is Still Booming, Especially For Chinese Tech CompaniesForbesBased on recent media reports, it looks like crowdfunding is now in the "disillusionment" phase of the famous Gartner hype cycle, after peaking a few years back. I will argue that crowdfundin [...] budget cuts, museums are crowdfunding to preserve 2015, the Smithsonian National Air and Space Museum in Washington, D.C. launched its very first crowdfunding campaign to 'Reboot the Suit'. The idea was to raise much-need funds to conser [...]

Business Daily (press release) (blog)How Women Trounce Men When Raising Seed Crowdfunding CapitalForbesMale entrepreneurs may account for the majority of business owners raising finance on crowdfunding platforms in the UK, but their female counterparts are far more likely to get the s [...]

Yahoo SportsCan crowdfunding save women's college hockey? - Yahoo SportsYahoo SportsNorth Dakota cut its women's hockey program in March, in one of the saddest and most stunning decisions to rock the sport at the collegiate level. “When you ...and more » [...]

road.ccCanadian cyclist charged with fraud after crowdfunding fake booby trap injuriesroad.ccA cyclist who pretended to have been injured by a barbed wire booby trap and asked for cash on a crowdfunding website has been charged with fraud and public mischief. Stelianos Psaroudakis, 37 [...]

ReutersStudy says women are better at crowdfunding - ReutersReutersWomen around the world are less likely than men to tap the crowd online for money to fund their businesses and projects, but when they do they are likely to.and more » [...]

CFB Finance


  • 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 |