Financialization of Real Estate Markets as a Macroeconomic Trend of the Digital Economy

S. G. Sternik () and N. B. Safronova
Additional contact information
S. G. Sternik: Institute of Economic Forecasting, Russian Academy of Sciences
N. B. Safronova: Moscow State University of Civil Engineering

Studies on Russian Economic Development, 2021, vol. 32, issue 6, 676-682

Abstract: Abstract— The changes in the world economy since the early 1990s, such as the globalization of financial and commodity markets, deregulation of the financial sector, and its growing role in the economy, have led to significant changes in the real estate market, traditionally one of the most conservative markets. The process of financial institutions’ entering the top players in the real estate market is most commonly referred to in various researches as financialization. In the last decade, this trend has been supplemented by processes associated with disruptive technologies that have emerged within the rapidly developing fintech industry and offer a number of mechanisms that make investing in real estate (crowdfunding), using real estate (sharing), and turnover of digital choses in action secured by real estate assets (tokenization) significantly more democratic. As a result, the excess of the total capitalization of the financial component of the market (including the growing digital share) over the total value of real estate assets can exceed reasonable limits and become an independent cause of another crisis similar to the 2006–2008 crisis in the United States.

Keywords: financialization; real estate; portfolio investment; property rights; disruptive technologies; financial technology; securitization; crowdfunding; tokenization (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://link.springer.com/10.1134/S1075700721060149 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sorede:v:32:y:2021:i:6:d:10.1134_s1075700721060149

Ordering information: This journal article can be ordered from
https://www.springer ... nomics/journal/11507

DOI: 10.1134/S1075700721060149

Access Statistics for this article

Studies on Russian Economic Development is currently edited by Viktor V. Ivanter, Dmitrii B. Kuvalin and Galina A. Yaremenko

More articles in Studies on Russian Economic Development from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().