Crowdfunding as an Innovative Form of Collective Investment in Real Estate
Justyna Ziobrowska
European Research Studies Journal, 2022, vol. XXV, issue 1, 875-884
Abstract:
Purpose: The aim of the paper is to present the purpose and principles of real estate crowdfunding, as well as to outline its different forms (equity crowdfunding, debt crowdfunding and co-investment). Methodology: This paper provides a comparative analysis of selected real estate crowdfunding platforms from around the world in terms of investment amounts, funding period, and return on investment, among others. The last part of the paper is devoted to assessing the development prospects for real estate crowdfunding as well as the opportunities and risks associated with the same. The paper uses the methods of literature analysis and criticism as well as the descriptive method. Findings: The analysis showed that crowdfunding is gaining traction globally in real estate financing and has provided an opportunity to open up the real estate market to a wider range of investors. Practical implications: The paper outlines the principles of real estate crowdfunding as well as the advantages and disadvantages of its various forms, which should be taken into account by investors who consider this form of investment. Crowdfunding platforms should be considered as a source of knowledge about planned investments. People interested in real estate crowdfunding can select, based on the information they have gathered, the form of investing their savings that will be most profitable for them. Originality/Value: The paper presents new methods to use crowdfunding in the real estate industry, where in addition to fund pooling, project participants have the opportunity to make successful investments and generate more capital. This research contributes to the debate on how crowdfunding, which is associated with innovativeness, is changing the traditional real estate market.
Keywords: Crowdfunding; crowdinvesting; investment; real estate; real estate crowdfunding (search for similar items in EconPapers)
JEL-codes: E22 G21 G23 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:ers:journl:v:xxv:y:2022:i:1:p:875-884
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