How To Build A Real Estate Crowdfunding App Like SmartCrowd And Its Development Cost

Investing in real estate is often seen as a way to grow and stabilise finances. However, many people can't access it due to difficult barriers. The founders of SmartCrowd recognised these challenges and embarked on a mission to change how the world invests in real estate. Their vision? To make real estate investment easier, more affordable, and accessible to everyone.

The SmartCrowd team is passionate about what they do, and their mission is clear: helping people achieve financial freedom through real estate investments. They've harnessed the power of technology, real estate expertise, and regulatory know-how to create an award-winning crowdfunding model. This model brings the dream of property investment closer to reality for individuals from all walks of life.

Creating an app like SmartCrowd is to step into a world where technology and real estate merge to provide a solution that simplifies one of individuals' most significant financial decisions. Suppose you're intrigued by the idea of building an app like SmartCrowd. In that case, this guide will take you through its operations, the intricate regulatory considerations, and the financial aspects of app development. In doing so, we hope to empower you to embark on a journey that could redefine the future of real estate investment.

What is SmartCrowd?

Founded in 2018 by Siddiq Farid and Musfique Ahmed, SmartCrowd has been at the forefront of a transformative shift in the real estate investment landscape. It's not just a platform; it's a commitment to financial empowerment. Their journey has been marked by innovation, regulatory pioneering, and an unswerving dedication to making real estate investment a possibility for all.

It enables individuals to invest in relatively small amounts of capital in real estate. SmartCrowd allows investors to purchase fractional shares of real estate properties, making it easier for a broader range of people to participate in real estate investment. The platform typically sources and manages properties, handles legal and administrative aspects, and distributes rental income and returns to investors. It offers a more accessible and streamlined way to invest in real estate, particularly in the Dubai market. Please note that specific details about SmartCrowd's offerings and operations may change over time, so visiting their official website or referring to the most recent information for comprehensive and up-to-date details is advisable.

How Does an App Like SmartCrowd Operate?

Creating an app like SmartCrowd necessitates a thorough comprehension of its systematic yet user-friendly operational procedure. Below, we have tried to describe the principal steps that underlie SmartCrowd's mission to simplify real estate investment:

Step 1: Property Sourcing and Verification

Commencing the journey is the critical process of property sourcing. SmartCrowd's team diligently sources, screens, and verifies investment properties utilising a proprietary 100-point screening tool. This meticulous evaluation ensures that only the most exceptional investment opportunities gain entry to the platform. It signifies a steadfast commitment to quality, a foundational pillar of SmartCrowd's service.

However, SmartCrowd's dedication extends further. To furnish investors with an additional stratum of assurance, the platform employs the services of a third-party evaluator. This independent appraisal robustly validates the property's intrinsic value and potential. It is a strategic measure designed to instil confidence and peace of mind in every investment opportunity on the platform.

Step 2: Special Purpose Vehicle (SPV) Establishment

Upon reaching the requisite funding threshold, typically set at 100%, SmartCrowd initiates the establishment of a Special Purpose Vehicle (SPV) within the Dubai International Financial Centre (DIFC). This marks the inception of the investment's transformative journey. Investors, including yourself and fellow participants, attain official ownership status of this SPV, collectively sharing ownership of the selected property.

The rental income generated by the property, in proportion to your investment, is seamlessly channelled to your digital wallet. This feature adds an element of flexibility and convenience to your investment voyage. It grants you the prerogative to reinvest your earnings or withdraw your balance at your discretion. Rental returns adhere to the tenancy contract's stipulations, ensuring a steady income stream.

Step 3: Portfolio Oversight

SmartCrowd recognises the enduring nature of real estate investments and facilitates the management of your property portfolio with flexibility. While the suggested holding period for real estate investments generally hovers around 5 years, SmartCrowd accommodates a range of preferences. Investors retain the liberty to exit their investments at any juncture through two primary avenues:

Listing Shares in the Share Transfer: Investors can list their shares within the marketplace. This avenue permits them to potentially identify interested buyers seeking to acquire their shares in the property.

Vote for Property Sale: Alternatively, investors can exercise their right to call for a vote to authorise the sale of the entire property. This democratic mechanism empowers investors with a voice in determining the investment's destiny, aligning with the principles of transparency and engagement.

Step 4: Unwavering Support and Flexibility

SmartCrowd's commitment to delivering an exceptional user experience extends beyond the initial investment. The platform extends continuous support and flexibility throughout the investment lifecycle. This encompasses proactive communication, routine updates on property performance, and assistance with any queries or concerns.

Licensing Considerations

Licensing is critical when building an app like SmartCrowd, especially in real estate and financial investments. Licensing requirements may vary significantly depending on your target region, but they often include:

• Financial Licenses: You may need financial services and investment activities licenses depending on your jurisdiction.

• Securities Regulations: If your platform offers real estate investments in the form of securities, you may need to comply with securities regulations.

• AML and KYC Compliance: Implement AML and KYC procedures to verify investor identities and prevent fraud.

• Real Estate Licensing: Specific licenses related to real estate transactions and property management may be necessary in some regions.

• Data Protection and Privacy: Comply with data protection and privacy laws to safeguard user data.

• Tax Compliance: Understand and adhere to tax regulations relevant to real estate investments.

Consult with legal experts and regulatory authorities in your target markets to ensure full compliance with licensing requirements.

The Development Cost of an app like SmartCrowd

Development costs to make a real estate investment app in Dubai lie between AED 80,000 to AED 120,000. We can make your app very affordable by adjusting your budget. Of course, the exact cost of development will vary depending on the features and functionalities of your app. 

Several factors can influence the development cost of a real estate investment app. Some of the most significant factors include the following:

Here are some of the key factors that can influence the development cost of a real estate development app:

App platform: The cost of developing a real estate app can vary based on the platform(s) it is being developed for. For example, developing an app for both iOS and Android will cost more than developing an app for just one of these platforms.

App features and functionality: The cost of developing a real estate investment app will depend on the features and functionality you want to include—the more complex and extensive the features, the more required development time and cost.

User interface: Design can also affect the app's development cost. A more complex and custom user interface design will require more development time, increasing the cost.

Integration with third-party services: Third-party services such as payment gateways, mapping services, and delivery APIs can also increase the app's development cost.

App maintenance and updates: After the app is developed, ongoing maintenance and updates will also add to the overall cost. This includes bug fixes, security updates, and feature enhancements.

Team size: The size of your development team can impact the cost of developing your real estate investment app. A larger team will require more resources and may increase the development cost.

Location: The location of your development team can also impact the cost. Development teams based in countries with lower labour costs may offer lower development costs.

Testing and Quality Assurance: Proper testing and quality assurance are crucial to ensure the smooth functioning of the app. The more thorough the testing process, the higher the development cost.

App testing: Finally, thorough app testing can add to the overall cost. Testing ensures the app functions as intended and identifies and fixes all bugs and errors.

How profitable is an app like SmartCrowd?

The profitability of an app like SmartCrowd, a real estate crowdfunding platform, can depend on various factors. Here are some key considerations:

Business Model: The profitability of the platform is often tied to its business model. Real estate crowdfunding platforms typically generate revenue through fees, such as transaction fees, management fees, or a percentage of the profits generated from investments. The specific fee structure and rates can significantly impact profitability.

User Base: The size and activity of the user base are crucial factors. A larger user base can lead to more investments and higher revenue. Building and retaining a substantial and engaged user base is essential for long-term profitability.

Investment Volume: The total volume of investments made through the platform is a critical determinant of profitability. Higher investment volumes can result in increased revenue, particularly if the platform charges fees based on transaction sizes.

Property Performance: The performance of the real estate properties listed on the platform is a key driver of profitability. Positive returns from properties and rental income can attract more investors and contribute to profitability. However, real estate markets can be subject to fluctuations.

Platform Costs: Operating and maintaining a real estate crowdfunding platform incurs costs, including technology infrastructure, personnel, regulatory compliance, marketing, and customer support. Managing these costs efficiently is vital for maximising profitability.

Competition: The level of competition in the real estate crowdfunding market can impact profitability. If there is intense competition, the platform may need to engage in aggressive marketing efforts or offer unique features to stand out, which can affect profitability.

Market Conditions: Economic and market conditions can influence real estate investments and platform profitability. Favorable economic conditions can lead to increased investment activity, while economic downturns or market volatility may pose challenges.

Regulatory Environment: Compliance with financial regulations is essential for real estate crowdfunding platforms. Regulation changes can impact operations and may require costly adjustments to ensure compliance.

Risk Management: Effective risk management practices, including property selection and risk assessment, are crucial. Poor risk management can lead to losses and reduced profitability.

Long-Term Strategy: The platform's long-term strategy and vision can impact profitability. Expanding into new markets, introducing new features, forming strategic partnerships, or diversifying services can open up new revenue streams.

It's important to note that the profitability of an app like SmartCrowd may not be immediate. Building a user base, establishing trust, and achieving a critical mass of investments often require significant effort and investment upfront.

The specific financial performance of SmartCrowd or a similar platform can only be determined by evaluating its financial statements, user metrics, and business strategy. Thorough market research, financial planning, and consulting with experts in real estate crowdfunding can provide valuable insights and guidance for assessing the potential for profitability and sustainability.

In conclusion, creating an app like SmartCrowd involves a strategic combination of real estate expertise, technology development, regulatory compliance, and a user-centric approach. While the initial investment can be substantial, the potential to revolutionise real estate investment and provide accessible opportunities to a broader audience makes it a rewarding endeavour. Careful planning, legal compliance, and a relentless focus on user experience are key to success in this transformative market.

To give your innovative app idea the best chance at success, partnering with an experienced app development company is crucial. Royex Technologies is a Dubai-based mobile app development company with over 10 years of experience. Our team of developers have developed over 300 mobile apps and we are also an ISO certified company.

Royex Technologies can provide the expertise and support you need to realise your innovative app idea. For any service requirements or new development for your mobile app, call us at +971 45820203; we will be happy to help you sort it out.