Walliance, the pan-European real estate crowdfunding platform, has presented together with the Polytechnic University of Milan the ‘Real Estate Crowdfunding Report 2023’. This study provides an analysis of the global state of real estate crowdfunding, showing that it has reached a cumulative fundraising figure of 53 billion euros by the end of 2023.
According to the study, the market has remained resilient in the face of challenges such as rising global interest rates and geopolitical uncertainties, with a contribution of €12 billion from the European Union, including €2.6 billion raised in 2023 alone.
In Europe, France leads the real estate crowdfunding market, followed by Germany and Italy, with the top five platforms controlling 38% of the market. An analysis of European investors' preferences indicates a growing interest in residential projects in rural or tourist areas, with 47% of campaigns funded in these areas. In addition, 64% of the projects financed are for new construction, reflecting a strong demand for development projects.
The report also notes an increase in the percentage of projects with repayment delays of up to 6 months (from 6.8% in 2022 to 8.7% in 2023), although a reduction in projects with delays of more than 6 months or in default (from 12% to 9.3%).
In terms of returns, the performance of real estate crowdfunding platforms varies, with average annualised net returns of approximately 10% on loan-type projects, while some reached more than 12%. Equity projects, while higher risk, offered higher return potential, with net annualised returns of more than 15% in some cases.
Giancarlo Giudici, professor at the Politecnico di Milano School of Management, underlined that ‘The study “Real Estate Crowdfunding Report 2023” confirms the importance of this tool as an alternative form of financing, capable of democratising access to the real estate market. With a steady growth also in Italy, real estate crowdfunding represents an attractive solution for portfolio diversification and access to investments that offer competitive returns’.