Assessing the financial efficiency of crowdfunding platforms in the real estate market

Abstract

Lithuania is a fast emerging country in the field of financial literacy. More and more people are devoting their time and finances to self-education and advice on personal finance management. However, the still low involvement of the population in crowdfunding platforms shows that this area has great prospects for the future. The uncertainty is exacerbated by the fear of risk when it comes to money and the allocation of a portion of personal finances to a specific area or fund. This article presents and analyses the most promising crowdfunding platforms for the real estate market in Lithuania, where a well chosen investment platform can provide passive income for investors in the long run. The aim of the paper is to assess the effectiveness of crowdfunding platforms in the real estate market. Using the TOPSIS method to determine which of the platforms is the most efficient and reliable for investors. In this period of the Covid-19 pandemic, it is not easy to transparently assess the efficiency of firms, as the performance of firms has been affected by the effects of the pandemic, and the results obtained may be dramatically different from those that would have been obtained in a non pandemic period.