An Appraisal of Awareness and Benefits of Crowdfunding in Real Estate Development

Authors: Alohan, E.O., Joseph, A.D. And *Simeon J.A.

DOI Info: http://doi.org/10.5281/zenodo.15778034

ABSTRACT

Crowdfunding offers a great and robust source of funds for real estate development projects in Nigeria. However, its usage in the Nigerian context is not popular, despite its huge potential in the real estate industry. It offers a transformative approach to financing real estate development, opening up opportunities for both developers and investors. This study is aimed at accessing the awareness and benefits of crowdfunding in real estate development within Benin City, Nigeria, using quantitative survey approach with empirical data obtained through structured questionnaire. A total of 72 structured questionnaires were distributed to property managers and real estate developers’ companies in the study area with 61 filled questionnaires retrieved, representing 84.72% response rate. Data obtained were analyzed using descriptive statistics. The study revealed that only 11.48% of the respondents were very aware of crowdfunding in real estate, majority, representing 34.43% were not aware. The results indicate that 70% became aware through the internet/social media platform, 18.03% through colleague in the profession and 9.84% learned of crowdfunding through Television or Radio media. The study concluded that majority of the respondents were not aware of crowdfunding as an alternative to real estate development and recommended that greater attention and focus be given to creating awareness by estate surveyors and valuers and real estate developers through training programs, research and development and partnering with existing crowdfunding platforms that have experience in the real estate sector.

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