The Rise of Real Estate Crowdfunding in 2024: A Transformative Year
2024 marked a pivotal moment for real estate crowdfunding (RECF), solidifying its status as a credible alternative to traditional investment avenues. The Real Estate Crowdfunding Report 2024, produced by Luiss Business School in collaboration with Walliance, revealed that global fundraising in this sector reached nearly 55 billion euros, showcasing double-digit growth across most markets. Notably, Italy experienced a record surge, surpassing 800 million euros in cumulative funding.
Giacomo Bertoldi, CEO of Walliance, emphasized the report’s purpose: “With this report, we aim to provide the market with a transparent analysis tool, enabling investors and operators to navigate a constantly evolving sector.” Professor Caroli from Luiss Business School added that the report offers a clear, scientific understanding of how crowdfunding is reshaping real estate in Europe and Italy.
From Emerging Phenomenon to Financial Infrastructure
Real estate crowdfunding began as an experimental fundraising method just over a decade ago. Today, it has evolved into a robust financial infrastructure, attracting both retail and institutional investors. The core principle driving this growth is disintermediation. Authorized digital platforms allow investors to participate in real estate projects with minimal initial investments, often starting from just a few dozen euros.
This growth is not merely quantitative; it also reflects a qualitative transformation. Platforms have transitioned from being simple intermediaries to integrated players managing the entire investment process, from advisory services to operational management. Companies like Fundrise in the U.S. and Urbanitae in Spain exemplify this evolution, offering digital REITs and direct investment tools.
Global and European Numbers
The United States remains the leader in real estate crowdfunding, boasting nearly 30 billion euros in cumulative revenue, with projections indicating it will exceed 32 billion euros by 2025. In Europe, total collections reached 20.1 billion euros, marking a 29% increase compared to 2023. France led the way with 6 billion euros, followed by the United Kingdom, Germany, and Spain.
Italy, starting from a lower base, has shown remarkable dynamism. In 2024 alone, it raised 300 million euros, bringing its cumulative total to over 800 million euros, with a strong possibility of surpassing the one billion euro mark in 2025. This growth is attributed to the expansion of lending crowdfunding and the entry of new authorized operators.
Market Diversification
The report highlights a progressive diversification within the real estate crowdfunding market. In Europe, the fixed income segment now constitutes a significant portion of transactions, indicating the ecosystem’s growing maturity. On the regulatory front, the implementation of the ECSP Regulation has introduced a standardized framework, reducing discrepancies between member countries and providing greater stability for investors and operators.
Italy: Between Boom and Consolidation
Italy’s real estate crowdfunding market currently features 22 platforms focused on real estate. Some cater to retail investors with minimum deposits as low as €50 or €100, while others target more sophisticated investors with entry thresholds of €5,000. The majority of projects financed in Italy are residential (80%), with a strong emphasis on renovation (70%). This trend underscores the role of RECF in supporting urban regeneration and energy-efficient building initiatives.
However, challenges persist. In 2024, the number of campaigns launched declined to 230, down from 408 in 2023. This reduction signals a market stabilizing after the introduction of the ECSP Regulation, which imposed new rules on transparency, governance, and investor protection.
Sustainability and Inclusion at the Center
One of the most compelling findings from the report is the increasing focus on ESG (Environmental, Social, and Governance) criteria in funded projects. Platforms like EstateGuru in Europe and EquityMultiple in the U.S. are prioritizing projects related to energy efficiency, social housing, and the creation of low-impact spaces. In Italy, Walliance has already initiated sustainability-oriented projects, particularly in energy infrastructure.
The positive impact extends beyond environmental benefits; real estate crowdfunding is making access to this historically elitist asset class more inclusive, encouraging broader participation from retail investors.
Real Estate Crowdfunding Outlook for 2025
Looking ahead, estimates suggest that the sector will continue its upward trajectory. In Europe, cumulative funding could reach 22-23 billion euros, while Italy is poised to exceed the one billion euro threshold. However, the landscape remains influenced by macroeconomic factors—such as inflation, interest rates, and geopolitical tensions—that could temper growth.
Conversely, the regulatory standardization introduced by the ECSP and the integration of new technologies like blockchain and artificial intelligence promise to enhance transparency and efficiency in the sector.
Conclusion
The Real Estate Crowdfunding Report 2024 encapsulates a rapidly evolving sector that is international, sustainable, digital, and increasingly regulated. A decade ago, the notion of “bottom-up” real estate investments seemed far-fetched; today, RECF represents a market worth tens of billions, capable of redefining investment paradigms.
Italy, with growth rates surpassing the European average, stands out as one of the most promising markets. The goal of reaching one billion euros in funding is no longer a distant dream but an achievable milestone on the horizon.
Image by Jakub Zerdzicki via Unsplash
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