Sustainability and Real Estate Crowdfunding: Success Factors

Cinta Borrero-Domínguez, Encarnación Cordón-Lagares and Rocío Hernández-Garrido
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Cinta Borrero-Domínguez: Departamento de Economía Financiera y Dirección de Operaciones, Facultad de Ciencias Económicas y Empresariales, Universidad de Sevilla, Avenida Ramón y Cajal 1, 41018 Sevilla, Spain
Encarnación Cordón-Lagares: Departamento de Economía, Facultad de Ciencias Empresariales y Turismo, Universidad de Huelva, Plaza de la Merced 11, 21002 Huelva, Spain
Rocío Hernández-Garrido: Departamento de Dirección de Empresas y Marketing, Facultad de Ciencias Empresariales y Turismo, Universidad de Huelva, Plaza de la Merced 11, 21002 Huelva, Spain
Authors registered in the RePEc Author Service: Encarnación Cordón Lagares ()

Sustainability, 2020, vol. 12, issue 12, 1-13

Abstract: The objective of this paper is to analyze the factors influencing the success of real estate crowdfunding projects in Spain. This type of crowdfunding invests in real estate assets. We analyzed 60 projects published on the Housers platform, a kind of participative platform that uses the lending and equity crowdfunding modalities. These projects have involved around 36,623 investment decisions and have raised a total amount of almost 26 million euros. The empirical analysis is based on ordinary least squares and negative binomial regression. Our main findings reveal that success differs depending on the type of project; in fact, buy-to-sell projects are less successful than development loan projects. In addition, while total return has a positive impact on project success, in the case of risk level and project term, the impact is negative.

Keywords: real estate crowdfunding; sustainable development; investment crowdfunding (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:12:y:2020:i:12:p:5136-:d:375567

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