Real estate crowdfunding gained popularity during the pandemic; it only increased since then. With this new concept, real estate investments become accessible to everyone; even people with limited budgets can now invest in real estate. Real estate crowdfunding is trending, and so is real estate crowdfunding mobile app development. Before digging deeper into the development process or costing, let’s start with the simple definition and market statistics of a real estate crowdfunding mobile app.
What is a Real Estate Crowdfunding App?
A real estate crowdfunding app provides investors and builders with a platform where the former can find avenues to invest their money and the latter can raise funds. Fundrise is a perfect example of a crowdfunding app that has gained immense popularity within two years.
More than 140,000 investors are using this app to invest in the real estate domain. With these numbers, Fundrise has come under the radar of businesses looking for a lucrative mobile app idea. That is one of the prime reasons behind the increasing demand for real estate crowdfunding application development.
Before we delve into the crowdfunding mobile app development process, features, and cost, let’s glance through the real estate crowdfunding market share and growth drivers.
Real Estate Crowdfunding Market Share and Growth Drivers
According to Polaris Market Research, the real estate crowdfunding market worldwide is expected to grow at a compound annual growth rate of 50.9 % from 2023 – 2032. It is projected to generate a revenue of USD 793,476.5 million by 2032. Considering these numbers, it is evident that real estate crowdfunding will grow multifold in the future.
Real estate crowdfunding gained traction when the pandemic hit the world, causing a slowdown in the industry. Besides, increasing globalization and industrialization have also contributed significantly to the growth of this market. Crowdfunding in this sector has also provided immense opportunities to investors with low budgets. On top of that, the government has also launched many initiatives along with the low-interest-rates to attract investors to invest in the real estate industry.
Must-Have Features of a Crowdfunding App Like Fundrise
The first thing to build a crowdfunding app like Fundrise is to prepare a features list. You can also plan to develop the app’s MVP and launch it among your targeted audience to receive feedback. The next step is to create a real estate crowdfunding app.
The first option to make this possible is establishing a full-fledged app development team (designers, developers, and quality analysts) and setting up the required infrastructure. Another way is to hire experienced developers or outsource the project to a reliable app development company. No matter if you choose the first or the second option, check the below-mentioned list of features:
- Register and Sign In
Registration is the first step of most mobile applications. Along with registering by entering the required details, allow the app users to sign up directly via their social media accounts or email addresses. Once the registration completes, the user can use the registered email address and password. Don’t forget to integrate two-factor authentication, which requires entering the OTP (one-time password) the user receives on their registered mobile number/email address. You can also add a fingerprint authentication method for quick login.
- AML and KYC Validations
Crowdfunding apps involve money transactions, which makes AML (Anti Money Laundering) and KYC (Know Your Customers) a necessary feature of the real estate crowdfunding app. Completing AML and KYC will help you identify the stakeholders’ identity and source of income by linking their bank accounts with the app. Use relevant APIs that evaluate users’ identifications against the rules and regulations.
Your real estate crowdfunding app should have a feature named “project,” under which users can check details of the properties/projects available for investment. The section should include important information like investment size, estimated annual returns, project location, etc. Also, add the search button to allow users to search for any project.
- Automated Returns Calculator
The real estate crowdfunding app should also have a return calculator to calculate estimated earnings or profit during a particular period. The calculator will help investors to make data-driven decisions and invest in the right project.
- Investors Profile
Make a separate section where investors can create and view their profiles, mention finance goals, link bank accounts, and take other actions associated with their investments. Fundrise allows users to choose from one-time or recurring investments; you can also plan to add a similar feature.
- Withdrawing Earnings
Ensure your crowdfunding app development includes the feature to allow users to withdraw earnings. You can integrate an in-app wallet where the investors can receive what they earn and use them as and when needed. Another option you can provide where they can link their bank account to get returns on the investment. Also, decide the return models such as dividends and appreciation similar to Fundrise.
- Auto Fund Allocation
Add an automated fund allocation method to automatically allocate funds depending on the budget, returns, and risk factors. Define algorithms that ask investors different questions to understand their financial goals, budget, and more required to automate the process and invest on their behalf.
- Customer Support
Crowdfunding apps are limited; therefore, users would need customer support to get answers to their queries. With the support option, investors can connect with experts to know how a particular feature works or how to invest. They might also need help with other processes, such as resetting passwords, creating their profile, calculating returns, etc. You can also add an AI-powered assistant to resolve general queries.
10 Steps to Build a Real Estate Crowdfunding App like Fundrise
- Identify Your App’s Objectives
The first step is to identify your app’s goals and objectives. Make a list of the features and functionalities you want to integrate. Also, decide on the advanced features that would make your app stand out from your competitors.
- Conduct a Thorough Market Research
In the second step, find your competitors, the latest market trends, and the targeted audience. Conduct thorough market research to understand the pain points or needs of the app’s potential users. Determine how your real estate app will provide the resolution of the problem.
- Define Your App’s Architecture
After identifying your app’s objective and conducting market research, it’s time to plan your app’s architecture. While planning the same, define everything from the app’s backend, frontend components, database structure, framework, programming languages, and libraries.
- Design the User Interface and User Experience
UI/UX is the crucial component of any mobile app; it is the first thing a user sees when they access an app. Ensure your iOS or Android app development services provider or in-house development team designs an appealing UI that delivers an unmatched experience. Create wireframes and prototypes for designing both these design elements. Also, consider the usability, navigation, and app flow during this process.
- Begin the Backend Development Process
Once you create an intuitive and appealing interface, start the backend development considering the app’s main functionalities, such as user authentication, investors’ profiles management, payment gateways, etc. Select a scalable backend technology that can effectively manage complex business operations.
- Implement Frontend Elements
Use an appropriate programming language to develop your real estate crowdfunding app’s frontend components. Make sure both the backend and frontend integration is smoothie and seamless. Integrate required features into the front end.
- Integrate Multiple Payment Gateways
Your real estate crowdfunding app will include regular transactions. Therefore, provide your users with multiple payment gateways to ensure seamless and secure transactions. While integrating payment gateways, don’t forget to follow all the compliances, rules, and regulations to maintain the security of the transactions. Implement encryption, secure protocols, and adopt whatever measures are required to protect your users’ sensitive data.
- Test the App
Conduct thorough testing to ensure your real estate crowdfunding mobile app is bug-free and has no usability issues. Perform security, functional, and performance testing to ensure the app is stable and secure. You can also go for beta testing to collect user feedback and make necessary improvements.
- Final Launch
Launch the app on the targeted platforms, such as the App Store or Google Play Store. Collaborate with your marketing and PR teams to build marketing campaigns and strategies for your app’s promotion. You can do the marketing via both online and offline channels.
- Support and Maintenance
Don’t forget to monitor your real estate crowdfunding app’s performance, user feedback, and analytics once it is live on the app stores. Identify the problems and release timely updates to fix the bugs and improve the app’s stability, usability, and functionality.
Real Estate Crowdfunding App Development: How Much Does it Cost?
There is no straight answer to this question, as the cost of developing a real estate crowdfunding app depends on various factors. These parameters include:
- Features of app
- Technology stack
- Size of the development team
- Experience of app developers
- Location of the real estate app development services provider
It is difficult to tell the exact cost without knowing the project’s scope and the app’s features, complexity, design, and other elements. However, considering the functionalities given in this blog, the real estate crowdfunding app’s cost can be somewhere between $120,000 to $200,000.
The Bottom Line
Real Estate crowdfunding applications provide the right platform for investors and builders to connect. It transforms the way people invest in various real estate projects. With crowdfunding apps, such as Fundrise, gaining immense popularity, more and more businesses are inclining towards real estate crowdfunding app development.
But, before you do so, it is imperative to check the features mentioned above. Also, go through the step-by-step process for building such an application. You can also check how much it costs to develop a real estate crowdfunding platform or app. To create a scalable and future-ready crowdfunding app for real estate, contact the best mobile app development company, Quytech, and request a quote.