Organizational Aspects of Development Projects Implementation at the Real Estate Market in Ukraine

The article is dedicated to the issues of improving a system of organizational providing of investment constructional activity at the real estate market of Ukraine. The authors suggest modern approaches to organizing different stages of investment and construction process. In particular, legal bases for organizing real estate development project concept design stage are analyzed and the ways of permissible procedures simplifying in construction are defined. Suggestions concerning choice of approaches to evaluating real estate projects development effectiveness of realization are made, where an important place belongs to development land improvement estimation. Real estate development project estimation methodology for various real estate types considering special aspects of conducting marketing research is offered. The article conclusion contains means recommended for implementing by real estate development organizations while designing their strategy of development.

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Value Maximizing Decisions in the Real Estate Market: Real Options Valuation Approach

Journal of Risk and Financial Management ◽

10.3390/jrfm14060278 ◽

2021 ◽

Vol 14 (6) ◽

pp. 278

Author(s):

Andrejs Čirjevskis

Keyword(s):

Real Estate ◽

Global Financial Crisis ◽

Investment Decisions ◽

Real Estate Market ◽

Real Estate Development ◽

The Real ◽

The Real Estate ◽

Real Options Valuation ◽

The Real Estate Market ◽

Real Estate Project

The real estate market of EU countries has undergone a severe global financial crisis 2008–2009, recovered successfully later, and now experiencing significant uncertainty due to the COVID-19 pandemic event. Significant volatility of the real estate business is once again evident, just as it was following the global financial crisis. The paper aims to provide a case study of a real estate project by giving insight into the Latvian real estate project that had been experiencing similar economic uncertainty, to demonstrate hybrid real options valuation (ROV) method to adapt real estate investments to changing circumstances and to develop the decision-making solution to similar EU real estate problems during the pandemic. The paper provides the “step-by-step” ROV application’s methodology in real estate development projects. The presented methodology is a powerful managerial risk management tool for the executives of similar real estate development projects in the EU countries struggling to make investment decisions in the pandemic and post-pandemic period. Since any estimation includes assumptions, ROV results should be interpreted and perceived as approximations only. The future works can provide robust ROV analyses and interpretations regarding the demand for real estate, showing quantitatively how competition can impact strategic investment decisions.

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