The development of investment activity in housing construction

Житлове будівництво

State management of investment activities in the construction industry is a kind of management function designed to unite the interests of the state and the individual on the basis of forecasting, budget financing, taxation, strategic planning and other measures of public control in the housing market. Market self-regulators and state regulators should meet each other to achieve the optimal construction structure.

State management of the investment process in housing construction is an open system interacting with the environment and all participants in the investment process. It should be studied as a system that includes a number of subsystems: pre-design, design, planning, maintenance, construction equipment, mediation, financial. Each subsystem, as the economic component, has a certain right to choose the mode of its operation. Each system component has its own objective function, a system of incentives and efficiency evaluation of techno-economic regimes, thus, it is necessary to satisfy joint and agreed process of economic components, in other words, to select the optimal mode of the process of the entire system while preserving the possibility for each separate element for a free choice of autonomous and own order of operation.

Today, an important precondition for the development of the state is increasing investment and the efficiency of its use. Investment activity in the construction industry is being formed in accordance with the demographic factors, the development of communication and transport networks, level of economic development, investment efficiency, and social infrastructure. The attraction of investments into the economy of the state is a factor of stability and success of its socio-economic development. In the present environment, the level of investment activity in the construction industry of Ukraine is in interdependence with the economy of the state, financial system, profitable business enterprises. The state in which our country has found oneself requires attraction of investments for long-term development of its regions.

The current state of the Ukrainian real estate market is characterized by the contradictory interaction of the components of the market and the command economy, the absence of an internally coherent system of infrastructure and so on. As a result, there are internal contradictions in the institutional structure of the real estate market. The excess demand with limited supply induces an uncontrolled increase in prices for residential property.

Some changes regarding the state management system of investment activity in housing construction occur continuously. Now, in our country, the more urgent becomes the development of effective public policy in housing, which should be based on market principles and at the same time, establish public mechanisms to provide housing for certain segments of the population. So, at the present time, the task of the state policy of housing stands to create effective approaches and state mechanisms for the provision of housing.

An important element of the investment activity system and implementation of investment policies is the extension of the sphere of attraction of foreign investments and the regulation of the conditions related to the direction of such investments to the national economy and protection of them. At the state level, the extremely important drivers of the regional housing policy are the development of the legal framework of regional development and the existence of reasonable mechanisms of realization of state regional policy. According to article 47 of the Constitution of Ukraine, every citizen has the right to housing.

Currently, the legislative framework for state regulation of investment activity in housing construction is more than a hundred various legal documents (decrees, laws, regulations, orders, resolutions and the like. Despite a large number of laws and regulations, inadequate legislation today is one of the main factors that delay the development of investment and construction activities.

Thus it can be concluded that the system of financial-economic mechanisms of financing the construction of real estate in our country today is at an early stage of development. It is necessary to create a legal framework for the implementation of new financial and investment mechanisms in the sphere of construction and purchase of affordable housing for citizens with average incomes, who need better housing conditions in accordance with the law.

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