Report: Real Estate Crowdfunding Set to Be $2.5 Billion Industry in 2015

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Real Estate Crowdfunding Set to Be $2.5 Billion Industry in 2015, Finds Crowdfunding Research Firm Massolution.

Report Forecasts Real Estate Crowdfunding to Nearly Triple in 2015

 LOS ANGELES, CA–(Marketwired – Mar 3, 2015) – Massolution, the leading research and advisory and firm specializing in crowdsourcing and crowdfunding solutions for private, public and social enterprises, has announced the release of its comprehensive 2015CF-RE Crowdfunding for Real Estate report, which will provide the first ever detailed look at the intersection of real estate and crowdfunding. The 158-page report features data on the exponential growth of real estate crowdfunding, the emergence of specialized real estate crowdfunding platforms and how this revolutionary new method of real estate finance and investment is disrupting this asset class.

The top findings of the report include:

  • Real estate crowdfunding grew 156 percent in 2014, just breaking the $1 billion mark, with campaigns ranging in size from less than $100,000 to over $25 million.
  • In 2014, North America stood as the largest region by funding volume at 56 percent market share, compared with Europe at 42 percent.
  • By 2015, Massolution forecasts that North America will retain its lead, reaching $1.4 billion in funding volume, but Europe will have just broken the $1 billion threshold.
  • Overall, real estate crowdfunding is expected to increase by 150 percent, equaling $2.57 billion in 2015, making it one of the fastest-growing industry segments of crowd capitalism.
  • This year, U.S. commercial and industrial property crowdfunding expects to see a 250 percent increase.
  • Growing investor interest in crowdfunding platforms is proving crowdfunding to be a legitimate source of funds as compared to traditional banking.

Symbols of percents around small house.

“It appears that alternative finance platforms are here to stay and are starting to nibble away, albeit limitedly, at the regulated banking segment,” said Steven Cinelli, senior fellow for Massolution research. “Crowdfunding affords users and providers of new capital options. And with enabled technology and scale, such platforms will even offer traditional banks new ways to enhance their existing client relationships through partnering.”

One of the new and exciting findings in the report is the development of cross-border deals and expansion into other areas of the world due to the emergence of global real estate platforms like Wealth Migrate. This is leading to a dramatic increase in real estate crowdfunding in regions with markets large enough to potentially surpass the U.S. in terms of both investors and available opportunities.

“The intersection of real estate and crowdfunding is enabling a huge leap within the industry away from the old property syndication model to new intermediate marketplaces, further proliferating this model around the world,” said Carl Esposti, founder and CEO of Massolution.

Because crowdfunding platforms have turned their focus internationally, investors from around the world have the chance to capitalize on opportunities on nearly every continent.

“It is important to expand a real estate investment portfolio beyond your own backyard in order to access the global investment community for greater capacity, reduced risk and sustainable growth,” said Scott Picken, founder and CEO of Wealth Migrate, one of the top 10 leading real estate crowdfunding platforms in the world.

While the report includes substantial information on crowdfunding in general as well as segment-specific content on crowdfunding activity, it also examines trends, effects on the traditional banking industry, and the outlook for real estate crowdfunding. As has been the case with all prior Massolution reports, 2015CF-RE Crowdfunding for Real Estate will be a much-cited resource for potential investors and businesses to begin researching how crowdfunding platforms can help them gain wealth through real estate investment, while also analyzing whether this model will remain profitable long term.

“The report does an excellent job of not only identifying trends in the real estate crowdfunding sector, but provides context and insight to explain the field’s significant opportunities for issuers and investors,” added Dr. Richard Swart, Massolution research advisor. “Real estate crowdfunding platforms will transform many of the syndication practices in real estate investing, yet are poorly understood. This valuable report is the first to provide insight to the professional community.”

You can purchase a licensed copy of the report here. Broad distribution of the report was made possible by Founding Research Sponsor Wealth Migrate.

Journalists interested in a copy of the report can contact research@crowdsourcing.org.

About Massolution
Massolution® is a unique research and advisory firm specializing in the crowdsourcing and crowdfunding industries that is helping write the guidelines for a new way to do and fund business. Massolution works with governments, institutions and enterprises in the design and implementation of crowdsourcing and crowdfunding business models that drive improved business performance, product and service innovation, enhanced levels of customer engagement and in the formation of new sources of capital. Massolution also publishes the industry website www.crowdsourcing.org. To enquire about services, contactresearch@crowdsourcing.org, or for more information, visit www.massolution.com.

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