The term "crowdinvesting" refers to a financing model in which several people participate in investments with comparatively small contributions. This association of small investors is also called "swarm financing," since numerous investors often have to invest in order to reach the required capital sum.
The crowdinvesting model has also found its way into real estate investments and has developed in recent years. According to figures from the research report "Practical experience with the exemption provisions of the Small Investor Protection Act: A current stocktaking" by the ifo Institute from Munich, around 456 million euros were generated in Germany as investment capital via the crowdinvesting model in 2020. Of this, many 352 million euros were invested in real estate projects.
Even though the investment volume via crowdinvesting still plays a minor role compared to other forms of investment today, there is almost a doubling of the investment volume in the real estate sector every year. The ifo Institute has examined the investment figures between the years 2011 and 2017. The result: every year, investments increase by about 197 percent. Based on a crowdinvesting database and surveys conducted in non-profit and social organizations, the ifo Institute examines the development on the crowdinvesting market.
Source: ifo Institute
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