The sixth edition of the Real Estate Crowdfunding Report, prepared by the Polytechnic University of Milan and the real estate crowdfunding platform Walliance, has just been published. This report positions us as the leading platform in profitability within the European Union among the 25 highest-grossing platforms.
This achievement is even more gratifying considering the rapid growth of real estate crowdfunding. By the end of 2022, the global real estate crowdfunding market reached 45.2 billion euros, an increase of 25.5% over the previous year. There are now at least 146 active platforms, which are analyzed in the RECF 2022 report.
The United States and Europe are the two main hubs of activity. The North American market is the largest, with a cumulative funding volume of over 25 billion euros. The European Union closed 2022 with a figure close to 10 billion euros, with France, Germany, and Estonia playing prominent roles. In the rest of the world, real estate crowdfunding had raised about 10.3 billion euros by the end of 2022.
The giants of real estate crowdfunding
The RECF report also details the performance of the 25 real estate crowdfunding platforms in the European Union by financing volume. This top 25 has funded over 12,000 projects, totaling more than 7.4 billion euros, or 76% of the total for the entire European Union. There are only two Spanish platforms in this ranking, and we are the leader in profitability obtained. We are more than five points ahead of the second platform and are among the seven that have exceeded their forecasts.
Source: Real Estate Crowdfunding Report 2022, by Walliance and Politecnico di Milano.
In fact, our figures are even better than those reflected in the report, which uses data up to the end of 2022. In total, to date, Urbanitae has fully returned the investment in 26 projects. The average annual return (IRR) we have obtained has been 16.9%, more than 3 points above what we had estimated. When looking at equity crowdfunding projects, the IRR rises to nearly 20%, exceeding our estimates by almost five points.
France is the country with the highest representation in the top 25, with a total of eight real estate crowdfunding platforms among the largest in Europe. It is followed by Germany with five; Austria with five; Estonia and Spain with two each; and Italy, Lithuania, the Netherlands, and Sweden, each with one real estate crowdfunding platform among the 25 largest in terms of financing volume.
Leaders in real estate crowdlending
Urbanitae also stands out for our specialization in equity projects, which today represent nearly 70% of our financing. Worldwide, more than 90% of crowd investing platforms specialize in lending. However, since mid-2019, we have financed 29 lending projects, making us equally leaders in real estate crowdlending in Spain.
Furthermore, the RECF 2022 report highlights the dominance of residential projects in real estate crowdfunding. No less than 95% of all financed real estate projects belong to this segment. In the case of Urbanitae, more than 80% of our projects are related to new housing developments. In fact, we have already promoted the development of over 1,900 homes in Spain. We are also exploring niches such as storage unit investments, which offer excellent investment opportunities.
And this is just the beginning. Take a look at our investment opportunities and join our leading investment community in Europe in terms of profitability… if you haven’t already.
