Crowdinvest Immobilien-Report 2019: Analysis of Real Estate Crowdfunding in Germany and Austria (Presentation Slides)

Abstract

The real estate crowdfunding market in Germany and Austria has experienced a strong growth in recent years. By end of 2018 nearly € 400m have been raised through real estate crowdfunding in Germany. From the investors’ perspective, however, things do not always look so shiny. More and more projects fall into insolvency. At the same time, German authorities warn against fraudulent investments on the internet.

In this market report we analyze real estate crowdfunding projects offered in Germany and Austria. These are analyses of data from over 500 projects and over half a billion euros of brokered real estate crowdfunding capital. Our study draws on a comprehensive database dating back to the first real estate crowdfunding project in 2012. First, we provide an overview of the German and Austrian real estate crowdfunding market. For this purpose, descriptive data of the market, such as the development of volumes, number of projects, maturities and interest rates are examined, separately for bonds and loans. Secondly, we analyze the success of real estate crowdfunding and conduct a trend analysis based on historical data and preliminary data from 2019. Among other things, we found that there is a clear trend from subordinated loans towards bonds and the market has grown significantly in the first few months of 2019, while the growth rate continues to decline.

Keywords: Real Estate Crowdfunding, Immobilien-Crowdinvesting, Crowdfunding, Venture Capital

JEL Classification: G11, R30, E22, M13, O16, G30, G31, K22