A comprehensive report on Real Estate Crowdfunding has been published by Massolution. The report offers a great insight into the real estate space and highlights the fact that real estate is one of the fastest growing areas of the crowdfunding industry.
Key facts from the report include:
Carl Esposti, founder and CEO of Massolution, commented:
"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."
The report also highlighted how real estate crowdfunding is spreading out of the US and into other markets. One platform that is already operating across borders is Wealth Migrate. Wealth Migrate has currently facilitated more than $1.3 billion since inception in real estate transactions across five continents.
Scott Picken, CEO of Wealth Migrate, said that the report,
“Illustrates the how the real estate crowdfunding industry is becoming more prominent and the staggering growth it has enjoyed so far”.
However, he stresses that readers need to look “beyond the numbers” and realise the disruption that crowdfunding is causing to established institutions. The level of transactions going through real estate crowdfunding, about $1 billion, is just the tip of the iceberg compared to the size of the rest of the industry.
Scott enthused about the huge potential that real estate crowdfunding has. Currently only 12.9% of people in the world have access to real estate. He sees real estate crowdfunding as the innovation that will democratise access to real estate. Currently the minimum investment in Wealth Migrate is $10,000 but Scott hopes that it will go down to $1 via changes in technology opening up an investment class that has previously been inaccessible.
"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."
The report and the strong performance from the crowdfunding platforms shows that the industry has great potential and should continue to grow rapidly. However, reaching this potential will be difficult as the main issue the industry faces is becoming better known and entering into the mainstream for investors, as currently crowdfunding is such a small proportion of the real estate industry. But this is set to change and research like the Massolution report will help the industry become the obvious choice for investors.
Now in its sixth year, the AltFi London Summit returns on 18th March 2019 to 155 Bishopsgate. Last year proved to be a crucial turning point for the key players building the future of finance. Leading platforms launched oversubscribed IPOs, digital banks proliferated and mainstream financial institutions started their own disruptive propositions. With 2019 certain to be another landmark year, more questions will be asked by regulators with investor interest in disruption also poised for more rapid growth.