REAL ESTATE CROWDFUNDING IN GERMANY - 76 % OF INVESTORS PLAN ADDITIONAL INVESTMENTS
Exporo Study on Investor Behavior: Current Trends and Industry Statistics
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Real estate crowdfunding – which is the funding of a project by a large number of small investors - has established itself on the German market and is considered a serious alternative to traditional real estate investments. Investors mainly use it as part of a complete investment portfolio. The latest survey conducted via the online platform in March 2017 confirms these results. According to the study, 65 % of the platform users invest on a regular basis or consider themselves investment experts. A mere 4 % have no experience in investing. Over half of the investors, 76 % to be exact, have had positive experiences and intend on investing in additional real estate Crowdfunding projects.
ARE YOU PLANNING TO INVEST IN (FUTURE) REAL ESTATE CROWDING PROJECTS?
CRUCIAL CRITERIA FOR INVESTING
Profitability (98 %) and security (95 %) are the deciding factors for investors when making real estate Crowdfunding investment decisions. Only 57 % of the interviewees considered liquidity “significant” or “rather significant”.
CHOOSING THE RIGHT CROWDFUNDING PROJECT
The overall impression and appeal of the real estate investment make up the key factors for 96 % of the investors when choosing a Crowdfunding project. 91 % consider the background of the project developers as well as the previous success of the Crowdfunding platform (89 %) as crucial. Surprisingly only 12 % consider the proximity to the project as a selection criterion. In addition to that only 22 % view the possibility of investing with a high maximum investment amount as important.
THE AVERAGE EXPORO CROWDFUNDING INVESTOR
According to the survey the average investor is male, 51 years old and mainly invests in shares, call money and in share based funds. In real estate Crowdfunding he invests in residential projects that will be realized by experienced project developers in one of Germany’s top 7 cities. Most of the information will be collected on the Internet (93 %). The preferred investment would typically have a term of two years.
WHAT IS YOUR OVERALL INVESTMENT EXPERIENCE?
Important key facts at a glance:
- 76 % of the respondents intend on making future real estate Crowdfunding investments.
- 60 % of the interviewees are experienced investors.
- Continued growth in the digitalization of processes: Less than a quarter of the respondents use offers of investment and bank advisors.
- Profitability (98 %) and Security (95 %) are key drivers for real estate Crowdfunding investments.
- The appeal of a project (54 %) as well as higher returns (43%) are important factors when investors decide to increase the real estate Crowdfunding investment volume.
Note: Out of 3.024 clients who received the questionnaire by email, 856 clients completed the survey. Download the complete study (German only) as a PDF file here.
DOWNLOAD THE ENTIRE STUDY AS PDF (IN GERMAN)DOWNLOAD