A report by Le Figaro claims that “real estate crowdfunding sites are on the verge of suffocation.” [translated] The commentary reflects on the decline in France of investment crowdfunding, more specifically in the real estate sector, which at one point led the growth of online capital formation or financement participatif.
While the broader real estate market has suffered and developers have struggled, laying off workers and pausing projects, the “property crisis” is described as marking the end of the “golden age of real estate crowdfunding which at one time provided returns of around 10% for investors who only needed to contribute a small amount to participate in the asset class. It is said that over 40% of real estate projects listed on crowdfunding platforms are behind in payments.
The report shares that Wiseed, a top platform, has laid off employees with rumors circulating that the company may be sold.
Investors are said to be shifting away from investing in real estate, having been burned by the ventures. One investor is quoted stating that out of eight projects he has supported – all are struggling.
Real estate executive Norbert Fanchon recently posted on X that 1/3 of #real estate projects are in difficulty and 1/20 are in cessation of payment.
It was reported in February that crowdfunding in France had experienced a significant decline in 2024, dropping by 17.1%. For the second year in a row, real estate crowdfunding in France declined by 25.8% compared to the overall decline of crowdfunding.
Investment platforms in France are mostly debt-focused. In the past, this has dominated investment crowdfunding in the country, but last year, it fell below 50% of all funding raised.
