Innovations in real estate development: the potential of crowdinvesting for attracting investments

Abstract

Due to the transformation of financial markets and the active digitization of investment processes, the problem of identifying and implementing alternative sources of financing for real estate development projects has become increasingly relevant. The article provides a theoretical and methodological analysis and applied justification of the feasibility of using crowdfunding as an effective tool for financing development initiatives. The purpose of the study is to conduct a comprehensive analysis of theoretical approaches to crowdfunding in the context of real estate development, in particular, to assess its significance for both investors and project initiators, as well as to identify the peculiarities of the functioning of crowdfunding platforms. The research uses methods of comparative analysis, generalization, systematization, and analysis of statistical data on the volume of investments attracted through crowdfunding instruments. The results show that crowdfunding is a promising tool for diversifying sources of financing for development projects, especially in the early stages of implementation. It has been proven that the use of specialized crowdfunding platforms helps attract private investors to the real estate market, while ensuring transparency and control over the investment process. It was found that, unlike traditional financing mechanisms, crowdfunding reduces developers’ dependence on bank loans and institutional investors. The conclusions summarize that crowdfunding can become an effective mechanism for supporting the innovative development of the real estate market in Ukraine. The main obstacles to its implementation have been identified: regulatory uncertainty, low financial literacy of potential investors, and limited access to reliable information about projects. Prospects for further research are related to the development of adaptive risk management models in an unstable investment environment, combining elements of legal expertise, performance indicators, and scenario analysis algorithms.