Real estate crowdfunding. one of the most popular sectors of online capital formation is picking up pace in France, according to research by Fundimmo.
While 2020 was a challenging year for all platforms, everywhere, 2021 is on track of a solid year of gains for real estate platforms.
The report states that during the first half 0f 2021, €408.1 million was raised on property platforms. During the same period in 2019, €184 million was raised so more than double (122% increase).
Correspondingly, amounts returned to investors increased as well going from €76.6 million in 2020 to €114.2 million in 2021.
The average amount financed per project in H1 2021 was €872,074 versus €803,570 a year prior.
The authors state that the increase in the size of projects is indicative of larger projects being financed.
Out of the 468 projects financed in the first half of the year residential dominated with 76.6% of the volume.
The average investment per individual stood at €2,888 – so fairly small. Investors received, on average, a return of 9.2%.
Fundimmo surveyed 40 different platforms but notes that this sector of Fintech is largely dominated by three individual platforms – including Fundimmo, which represents half of the volume.