The number of crowdfunding real estate deals as a share of all real estate transactions continued to increase during 2020. While traditional capital raising dipped by 6 percent, from $51 billion to $48 billion this past year, crowdfunded deals more than doubled, increasing from $7 billion in 2019 to $15 billion, according to new data released by GowerCrowd, a provider of information about real estate syndication.
The research, based on the analysis of more than 18,000 real estate projects, found the industry is experiencing an increase in both the number and the size of sponsors adopting crowdfunding across geographic markets and asset classes, and the size of individual asset investments has dramatically increased as investors have become comfortable with online transactions.
“Over the past several years, crowdfunding has grown much faster than traditional capital formation methods, posting positive gains even throughout the pandemic-induced economic downtown,” sa