Year: 2024
Type: article
Abstract: Introduction. The reconstruction of the housing stock is a current priority in urban development and real estate, as it enables the modernization of outdated buildings, improves their energy efficiency, and enhances living conditions. Investments in housing stock reconstruction are attractive due to their high liquidity and short payback period. At the same time, the development of an effective investment market in this area requires the creation of methodologies for evaluating investment attractiveness that take into account a wide range of factors, including economic, technical, social, and urban planning considerations. Methods. The following research methods were employed to achieve the set objectives: the monographic method (for an in-depth study of the features of investment support for housing stock reconstruction projects); factor analysis (to identify the factors influencing the investment attractiveness of projects); and the abstract and logical method (for theoretical generalizations and formulating conclusions). Results. It was proposed to view investment attractiveness as an integral indicator that encompasses development prospects, asset liquidity, financial stability, and the profitability of the reconstruction project. It depends on such parameters as the state of the real estate market, demand for construction products, the cost of materials, the efficiency of construction companies, projected economic indicators, and the social significance of the project. The methods of assessing investment attractiveness were systematized and were provisionally divided into quantitative and qualitative approaches. Quantitative methods include Net Present Value (NPV), Discounted Payback Period (DPP), Internal Rate of Return (IRR), and the Accounting Rate of Return (ARR). They allow the calculation of a project’s economic efficiency based on financial indicators. Qualitative methods include the analysis of the investment climate, urban planning regulations, spatial factors, social and economic trends. Discussion. An important role in determining the cost of reconstruction is played by the technical condition of the object; its evaluation is carried out within the framework of a technical inspection or construction and technical expertise. Spatial factors (location, infrastructure, transport accessibility, environmental condition, and architectural appearance) also determine investment attractiveness. Overall, modern assessment methods help minimize risks and make informed decisions. Keywords: investment attractiveness, project, housing stock, efficiency.
Source: The economic discourse
Author: Oleksandr Slobodeniuk
Language: English
Subfield: Architecture
Field: Engineering
Domain: Physical Sciences
Open Access status: diamond
OpenAlex ID: W4407991000