2017 had broken all records. It seems that 2018 shows an acceleration in the enthusiasm of investors for projects financed by real estate crowdfunding compared to an already exceptional year 2017. The hellocrowdfunding aggregator site informs us that 62 million Euros have already been collected since January 1, 2018. While 85 projects were collected during the same period in 2017, the first half offered a panel of 126 projects.
The infatuation reveals only one parameter, that of investment. The other aspect concerns the repayment of investors. It is also on the rise but this is only a mechanical consequence of the increase in investment year after year.
Another significant parameter is the average amount collected per property project; it is now around 500,000 euros per project. That’s 20% better than 2017!
Straw fire? No, the typology of real estate projects shows that crowdfunding is diversifying. The residential sector accounts for 57% of the total, but other types of projects are gaining ground: 14% for property merchants, 10% for developers and the rest is shared between commercial premises, hotels, warehouses and offices. According to EuroRaiser, this diversification will fuel the growth of real estate crowdfunding.
Other parameters in the hellocrowdfunding study in the study are very indicative of the momentum gained by real estate crowdfunding. The rates are higher but let us not forget that we are in the real economy, the building sites and the marketing of certain projects can fall behind the initial planning, this has an impact on certain repayment schedules.