SwissLending has announced the launch of a real estate crowd lending platform, the first crowdfunding platform in this sector in Switzerland according to the Geneva fintech firm.
The platform specialises in loans for real estate professionals and has been set up to allow developers to complete their funding directly from individuals looking to invest.
The technology is designed to tackle longer cycles of real estate transactions and an increase in the capital requirements asked by banking partners by creating a platform for crowdfunding.
Tests on the platform have been taking place since early 2016 and saw two successful transactions completed in Lancy, Switzerland and Villiers-sur-Marne, France totaling over CHF 1.1 million.
By the end of 2015, the crowdfunding industry had grown to about $34.4 billion, according to a Massolution study.
The platform was formed as the Geneva fintech team saw that the figures were driven by both lending to businesses and individuals and real estate crowdfunding.
Globally, the real estate sector for crowdfunding in 2015 was valued at $2.57 billion, however this is not representative of Switzerland according to SwissLending.
Commenting on the space, a spokesperson at SwissLending said: ‘In the property sector, the crowd lending revolution is even more active as real estate investing has always been reserved to institutional investors and UHNWI.’
‘The need to democratize the offering, generally considered rewarding (yield from 6% to 12%) and with controlled risk, is the purpose of SwissLending.’