Assessment of Average Market Investment Returns in Development of the Residential Real Estate in the Moscow Region
In the previous work, G.M. Sternik and S.G. Sternik justified the options for the method of assessing the average current annual return on investment in residential real estate development, depending on the nature and content of the initial data on the costs contained in the sources of information (...
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| Language: | Russian |
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Government of the Russian Federation, Financial University
2019-06-01
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| Series: | Мир новой экономики |
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| Online Access: | https://wne.fa.ru/jour/article/view/203 |
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| author | S. G. Sternik Ya. S. Mironchuk E. M. Filatova |
| author_facet | S. G. Sternik Ya. S. Mironchuk E. M. Filatova |
| author_sort | S. G. Sternik |
| collection | DOAJ |
| description | In the previous work, G.M. Sternik and S.G. Sternik justified the options for the method of assessing the average current annual return on investment in residential real estate development, depending on the nature and content of the initial data on the costs contained in the sources of information (construction costs or total investment costs). Based on the analysis of the composition of the elements of development costs used in various data sources, we corrected the coefficients that allowed us to move from the assessment of the current annual return on investment in development in relation to the cost (full estimated cost) of construction to the assessment of the current annual return on investment in relation to the total investment costs. This calculation method was tested on the example of the housing market inMoscow. As a result, we concluded it is possible its use for investment management in the housing market. In this article, based on G.M. Sternik and S.G. Sternik’s methodology for assessing the return on investment into the development, and taking also into account the increase of information openness of the real estate market, we improved the calculation formulas, using new sources of the initial data, and recalculated the average market return on investment into the development of residential real estate in the Moscow region according to the data available for 2014–2017. We concluded that, since 2015, the average market return on investment takes negative values, i.e. the volume of investment in construction exceeds the revenue from sales in the primary market. However, in the second half of 2017, the indicator has increased to positive values, which was due to a greater extent of the decrease in the volume of residential construction in the region. The data obtained by us, together with the improved method of calculations, allow predicting with high reliability the potential of the development of the regional markets of primary housing for the purpose of investment and state planning of housing construction programs. |
| format | Article |
| id | doaj-art-d4bf4fedd4bc45828f790ad85ca0711f |
| institution | DOAJ |
| issn | 2220-6469 2220-7872 |
| language | Russian |
| publishDate | 2019-06-01 |
| publisher | Government of the Russian Federation, Financial University |
| record_format | Article |
| series | Мир новой экономики |
| spelling | doaj-art-d4bf4fedd4bc45828f790ad85ca0711f2025-08-20T03:00:30ZrusGovernment of the Russian Federation, Financial UniversityМир новой экономики2220-64692220-78722019-06-0112314015210.26794/2220-6469-2018-12-3-140-152194Assessment of Average Market Investment Returns in Development of the Residential Real Estate in the Moscow RegionS. G. Sternik0Ya. S. Mironchuk1E. M. Filatova2Financial UniversityAssociation of developers of the Moscow regionFinancial UniversityIn the previous work, G.M. Sternik and S.G. Sternik justified the options for the method of assessing the average current annual return on investment in residential real estate development, depending on the nature and content of the initial data on the costs contained in the sources of information (construction costs or total investment costs). Based on the analysis of the composition of the elements of development costs used in various data sources, we corrected the coefficients that allowed us to move from the assessment of the current annual return on investment in development in relation to the cost (full estimated cost) of construction to the assessment of the current annual return on investment in relation to the total investment costs. This calculation method was tested on the example of the housing market inMoscow. As a result, we concluded it is possible its use for investment management in the housing market. In this article, based on G.M. Sternik and S.G. Sternik’s methodology for assessing the return on investment into the development, and taking also into account the increase of information openness of the real estate market, we improved the calculation formulas, using new sources of the initial data, and recalculated the average market return on investment into the development of residential real estate in the Moscow region according to the data available for 2014–2017. We concluded that, since 2015, the average market return on investment takes negative values, i.e. the volume of investment in construction exceeds the revenue from sales in the primary market. However, in the second half of 2017, the indicator has increased to positive values, which was due to a greater extent of the decrease in the volume of residential construction in the region. The data obtained by us, together with the improved method of calculations, allow predicting with high reliability the potential of the development of the regional markets of primary housing for the purpose of investment and state planning of housing construction programs.https://wne.fa.ru/jour/article/view/203housing marketprice dynamicsmarket forecastingreturn on investment: construction costsprofitability indexmacroeconomic indicator |
| spellingShingle | S. G. Sternik Ya. S. Mironchuk E. M. Filatova Assessment of Average Market Investment Returns in Development of the Residential Real Estate in the Moscow Region Мир новой экономики housing market price dynamics market forecasting return on investment: construction costs profitability index macroeconomic indicator |
| title | Assessment of Average Market Investment Returns in Development of the Residential Real Estate in the Moscow Region |
| title_full | Assessment of Average Market Investment Returns in Development of the Residential Real Estate in the Moscow Region |
| title_fullStr | Assessment of Average Market Investment Returns in Development of the Residential Real Estate in the Moscow Region |
| title_full_unstemmed | Assessment of Average Market Investment Returns in Development of the Residential Real Estate in the Moscow Region |
| title_short | Assessment of Average Market Investment Returns in Development of the Residential Real Estate in the Moscow Region |
| title_sort | assessment of average market investment returns in development of the residential real estate in the moscow region |
| topic | housing market price dynamics market forecasting return on investment: construction costs profitability index macroeconomic indicator |
| url | https://wne.fa.ru/jour/article/view/203 |
| work_keys_str_mv | AT sgsternik assessmentofaveragemarketinvestmentreturnsindevelopmentoftheresidentialrealestateinthemoscowregion AT yasmironchuk assessmentofaveragemarketinvestmentreturnsindevelopmentoftheresidentialrealestateinthemoscowregion AT emfilatova assessmentofaveragemarketinvestmentreturnsindevelopmentoftheresidentialrealestateinthemoscowregion |