Follow us on
Difitek
  • News
  • What We Offer
  • Contact Us
  • Visit our Site

The Great Success of Real Estate Crowdfunding

12/8/2014

 
Immagine
Real estate crowdfunding has been growing more and more over the last couple of years, as it was also shown by our latest Crowd Valley Market Reports. This type of crowdfunding, which bases its roots in the US market, where the first dedicated portals started their activities, has increased by double between the years 2012-2013 and by the end of this year it is expected to double again.


But real estate crowdfunding is not doing well just in the US. In the UAE, for example, this innovation for the real estate sector has found a fertile ground, with more than 30 operative platforms and nearly US$5.1 billion raised in 2013, up 81% from the previous year, according to a survey. Other interesting markets are the UK and South East Asia, where one of the first incumbent is a company part of GrowVC group.

But why is crowdinvesting currently booming? One of the main reasons is that the types of investments offered, which are quite various, ranging from renovations to distressed debt, usually carry high annualized returns - 10 percent to 30 percent - during three to five years investment’s life. This certainly makes real estate crowdinvesting very appealing to many investors, who did not have access to these kind of deals until a couple of years ago. In fact - and this is another reason behind the success of this new market - crowdinvesting brings an important innovation in a sector which has remained unchallenged for many decades: it enables everyone to potentially participate in a real estate deal, which traditionally have been open only to those investors who had the right connections and relationships with property developers. Furthermore, it allows the industry players to eliminate the big inefficiencies that have characterized their businesses for a long time, reducing their high overheads and disintermediating the investment process. Thanks to the online technology, incumbents can also easily expand their demand and supply of real estate investments cross-borders and increase the overall transparency level.

All these reasons, summed to the fact that real estate investing is a more familiar concept to non professional investors than startup investing, contribute to the current huge success of this new application of crowdfudning. Crowd Valley has been helping set up a number of real estate crowdinvesting platforms and it can help start yours as well. Just get in touch with our team.

References

Chapnick, A. (2014). How Crowdfunding is Changing the Face of Commercial Real Estate. National Real Estate Investor.
Global Property Guide (2014). Real Estate Crowdfunding Growing In UAE. NuWireInvestor
Frutikin, J. (2014). Key to Real Estate Crowdfunding Opportunity. CrowdfundBeat



Immagine
About the author - Irene Tordera

Born and raised in Milan, Italy, Irene is an International Business graduate, with a strong interest for innovative ideas that can simplify our lives.

During her studies, she co-founded an online community for sportspeople and worked in marketing positions at Ogilvy & Mather Advertising and at the European Business Angel Network, in Brussels. She is a passionate blogger about crowdfunding and the startup ecosystem.




Comments are closed.

    RSS Feed

       

    Categories

    All
    All Sectors
    Americas
    API
    Asia
    Australasia
    Clean Energy
    Crowd Valley
    CTO Blog
    Difitek
    Equity Investment
    Europe
    Events
    Expert Analysis
    Fintech
    Global
    Interview
    Lending
    Local Funding Network
    Marketing
    Market Watch
    Oceania
    Platform Updates
    Presentations
    Press Release
    Real Estate
    Regulations
    Russia
    Social Capital
    Webinar

Back to Difitek website


Copyright 2018 Crowd Valley Inc. 
All Rights Reserved.

Crowd Valley does not engage in the offer, sale or transfer of securities and securities may not be offered, sold or transferred via this website. Securities may not be offered or sold in the United States absent (i) registration under the U.S. Securities Act of 1933, as amended (the Securities Act) or (ii) an available exemption from registration under the Securities Act. Please consult legal counsel in the appropriate jurisdiction before offering, selling or buying securities as registration under the Securities Act or similar state legislation may be required.

Please note that the provision of the information on this website does not create and is not intended to create a relationship between Crowd Valley Inc. and any other person. You are not and should not regard yourself as being a client or customer of Crowd Valley Inc. and must not expect Crowd Valley Inc. to have any duties or responsibilities to you, act for you or your clients, or be responsible for providing protections afforded to customers or yourselves or be responsible for advising you in any respect.