Real Estate Crowdfunding Projected to Hit $869M by 2027

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The newer internet-enabled type of investing continues to expand. One crowdfunding firm says it has a hand in 200 Fla. properties with an average 55 investors each.

NEW YORK – The space for real estate crowdfunding is constantly growing, and even non-accredited investors have been able to participate in this booming activity.

Real estate crowdfunding is a way of investing in assets using small amounts of capital from multiple individuals. It’s done mostly through crowdfunding platforms that bring sponsors and investors together, a process that has grown as internet technology advanced.

In Florida, for example, RealtyShares connects institutional investors to real estate investment opportunities. In the recent past, the company says its crowdfunding projects helped 20,000 investors fund over 200 Florida properties for $28.1 million. Individual deals on the platform average around 55 investors each.

The Florida-based opportunities largely focused on residential projects. The RealtyShares investor community says it has a presence on 43 properties in Orlando.

A research study from Absolute Markets Insights projects notable growth in crowdfunding over time:

  • In terms of revenue, the United States real estate crowdfunding market is expected to reach over $ 868.9 billion by 2027.
  • The Institutional Investors segment is growing in the real estate crowdfunding market.
  • The Residential property segment is expected to reach over $ 147.6 billion by 2027, growing at an estimated compound annual growth rate (CAGR) of over 55% during the forecast period.
  • Industrial commercial property is expected to see considerable progress over the next eight years, growing at an estimated CAGR over 60% during the forecast period.

Some of the players operating in the United States real estate crowdfunding market are American Homeowner Preservation LLC, Cadre, CrowdStreet, Inc., Fundrise, LLC, Groundbreaker Technologies, Inc, and REALCROWD, INC amongst others.

© 2020 Florida Realtors®

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