Median yields are above 10%, but 30% of ongoing project has payment delays
In 2017-203, the capitals that French real estate crowdfunding platforms fetched grew from 66.5 million euros to 1.026 billion and reached a 1.289 billion peak in 2022. French crowdfunding platforms raised a total of 4.4 billion in the period that AMF, the French financial services authority, analysed on the ground of the data of the 10 main firms for collected money (see here the report).
Homunity, Anaxago, Fundimmo, ClubFunding, Raizers, and Weeximmo are some of France main platforms.
The report also points out that the number of funded projects grew steadily until 2022: from 167 in 2017 to 1.154 in 2022, and 878 nel 2023. In 1Q24 crowd investors financed 178 projects.
France real estate turmoil, rising financing costs for real estate developers and increasing investor caution due to delays in project payments are slowing down the market. for such reasons, in 2023, market participants allocated 60% of their resources in trading deals and 33.5% for development projects.
However, the median yields rose from 9.1% in 2017 to 9.6% in 2022, 9.9% in 2023, and 10.7% in 1Q24. Risk reward was of 10% in 2022, 7.7% in 2023 and 8% in early 2024.
The AMF report pointed out that 30% of ongoing projects has payment delays, 18.2% of the residential projects had non-contractual delays and the projects financed in 2020 and 2021 had deferral rates of 20.1% and 36.9% respectively. As of 2019, 60.2% of the projects financed experienced delays in reimbursements: 42% with stalls of more than 6 months and 8.8% subject to collective insolvency proceedings.
