Development of civil engineering financing forms and their influence on the development’s economy

Abstract

The purpose of this work is to study the influence of financing housing construction methods on the financial and economic characteristics of projects for apartment buildings construction (AB) and on price level of the primary Residential Real Estate Market. The methodological foundations of the research work are the rules for financing housing construction and other standards in this area, tax standards, rules for developing construction schedules, methods for assessing the investments effectiveness. Theoretical foundations of work are the work of leading scientists in the field of real estate development, provisions on the rules of pricing in the primary Real Estate Market, provisions of the finance and entrepreneurship theories. Information bases of work are market information on the primary Real Estate Market state (Novosibirsk) and the estimated cost of apartment buildings. The evolution of financing housing construction methods in the Russian Federation is described. Two modern methods are considered: financing with the use of agreements for participation in shared construction and financing, using real estate purchase and sale agreements (PSA). On the example of an apartment building, created in the city of Novosibirsk, calculations were made of the project implementation results for the AB construction, using both funding methods: (PAShC and PSA). The contradictions of the indicators describing these results are shown and explained (using PSA, the profit is higher; however, the internal rate is higher, using PAShC). The assessment of the initiative implementation consequences to ban PAShC is given.