French crowdfunding property marketplace slowly recovering


The French marketplace for crowdfunding immovable properties recorded in Q1 record profits. After a quarter marked by a $10.3M (€9.2M) pooling, four times bigger than Q1 of 2019, and a $4.72M (€ 4.2M) tripling of refunds, the entry into force of the control measures made Fundimmo halt pooling for a few days.

The French crowdfunding immobilities market is gradually recovering

The French property fund-pooling platform Fundimmo confirmed the resumption of strong momentum in the property crowdfunding marketplace after Q1 which passed with record investments and repayments, and then a major decline during the first step of the coronavirus. A pattern which the holding of municipal elections at the end of June will confirm and even intensify.

In Q1 this year, the property marketplace registered record inflows

The demand will carry on to expand or at least stabilize even with the coronavirus pandemic, with record investments in the first quarter of the year ($106.8M (€95M), up +106 percent when pitted against the first quarter of last year. The same applies to the profit which should sustain its attractiveness and strengthen the role of this savings product as a preferred investment for diversifying your portfolio.

While the completion period of property programmes could be prolonged due to delays on construction sites as a consequence of the pandemic, this is not a warning alert, as the interests of private individuals carry on to increase when ventures are prolonged. It’s estimated that the median delay for ventures that are currently behind schedule will be about 4 months for ventures that need to be repaid during the next year.

Jérémie Benmoussa, Chairman of Fundimmo’s Management Board said that tomorrow’s properties will need to take into consideration a much greater amount of external factors impacting construction site completion. This may see as a consequence prolonging in lending terms in the upcoming times, but prices in the near future will change little. Still, the lockdown has shown that digital has more than ever a place in the investment sphere, particularly for platforms like Fundimmo which can help savers and property operators remotely, proof of this strategy’s resilience. Let us be hopeful that the public authorities will encourage the property branch to carry on the recovery that started in the best terms, so this quickly-expanding marketplace can carry on building on firm foundations.

Investors get back to fund-pooling sites

After Q1 which passed in the shape of collecting $10.3M (€9.2M), four times bigger than in Q1 of 2019, and a $4.72M (€4.2M) tripling of reimbursements, the entry into force of the coronavirus reguations made Fundimmo halt pooling funds for a few days. For twelve ventures funded after the reopening of the site on April 14th, totaling at $13.5M ( € 12M), this first after-confinement assessment indicates investors are getting back to this funding method. Fundimmo is preparing a few new collections for ventures which are waiting administrative release sometimes – now or before the municipal elections.

Jérémie Benmoussa explained that the first six months of 2020 will indicate that funding via crowds continues to develop even with the obstacles faced by the property sector during this crisis. Investors are going back to such platforms, proof of their reinvigorated confidence in this kind of investment that in 2019 delivered an median return of 9.2 percent annually. More than before, developers require the finances to complete the ventures.

They are adjusting, and now that construction is slowly coming back and a date for elections has been determined, the plan is in motion. Recourse to property crowdfunding is still a big lever for property operators, both to ease their money flow and to get the equity required to refinance or start developments fast.