Crowdinvesting as an Alternative Way to Invest in Real Estate

Abstract

Abstract In the context of the aggravated economic crisis in many countries, including Russia, there has been a sharp decline in investment activity in the real estate market in recent years. In conditions of economic crisis, invariably there is a drop of supply and demand in the property market on the one hand due to the decline in real incomes, on the other hand the growth of prices for construction materials which in turn leads to increased property values. The increase in inflation also provokes a reduction in investment activity. [7] Accordingly, all this leads to the fact that Russian investors began to refrain from real estate development projects. Construction of capital commercial real estate objects in Russia currently has a low profitability and a high risk of loss, as the price of objects decreases while the cost of materials and labor increases. Against the general background, the share of the transactions in the secondary market of both residential and commercial real estate is growing, this is primarily due to the increase in profitability from renting out real estate.