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Opportunities for the Use of Real Estate Crowdfunding Platforms

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  • Kaloyan Ivanov

    (University of Economics – Varna)

Abstract

The real estate sector is seeing the development of a new model for financing projects in the digital world, in the form of so-called "crowdfunding" platforms. These platforms connect individuals and companies looking for funds with individuals looking for diversified investment opportunities, even when their resources are limited. This market has evolved and gained popularity, both because of the 2008 financial crisis and the 2020 Covid-19 crisis, while attracting many investors who aim to contribute to and benefit from the development of new technologies. The blockchain technology is one such innovation, which is increasingly being used in crowdfunding platforms. This paper discusses the method and models by which platforms operate, including blockchain. Mainly, models are used to divide real estate ownership into shares and guarantee dividend income to its investors. Another type of model is the provision of loans, which the borrowers can repay to lenders, directly through the crowdfunding platforms. This paper defines the basic characterization of real estate crowdfunding platforms and examines the opportunities facing the sector, which represents a fast-growing alternative to traditional financial institutions, challenging them to adapt to the new digital reality.

Suggested Citation

  • Kaloyan Ivanov, 2025. "Opportunities for the Use of Real Estate Crowdfunding Platforms," Stroitelno predpriemachestvo i nedvizhima sobstvenost = Construction Entrepreneurship and Real Property, University of Economics Varna, issue 1, pages 78-92.
    • Handle: RePEc:vrn:sjcerp:y:2025:i:1:p:78-92
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    File URL: https://cerp.ue-varna.bg/index.php/ojs1/article/view/46/34
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    More about this item

    Keywords

    Crowdfunding; real estate; alternative financing; blockchain; technologies;
    All these keywords.

    JEL classification:

    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • R39 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other

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