DEVELOPMENT PROJECTS FINANCING AS A REAL ESTATE MARKET FUNCTIONING MECHANISM

Abstract

The problem of economic growth in Ukraine is exacerbated by the situation of uncertainty in the field of real estate development. It is common foreign practice in the field of real estate construction to involve professional participants who provide comprehensive management of this process. The real estate market is an integral part and indicator of the development of any economic system in the country, as investment activities in real estate are a major factor in the economic development of the state and improve the welfare of the people. Real estate investment has a significant place in the expanded reproduction of the economy, and there are a number of reasons for this: significant demand, social and industrial needs, despite low profitability, significant environmental impact, high risks in construction. Development companies have become one of the leading professionals in the real estate market due to the transition of the economy to market relations.The emergence of new professional participants in the real estate market, development companies, has led to the expediency of improving the management of investment activities in real estate. The purpose of the article is to study the development trends of the real estate market in Ukraine, as well as to identify the features of the organization of development activities and the construction of mechanisms for financial support of development projects. The article examines the realities of the organization of development companies, sets out the concepts of professional development in terms of institutional change, which is a necessary part of the transformation of Ukraine's economy. Schemes of financing of development projects are substantiated, and also the place of development companies as a component of infrastructure of the real estate market is allocated. Particular attention is paid to the creation of a project company in the implementation of the investment project. After all, the loan is reflected on the balance sheet of this company to adequately reflect the cash flows generated by a particular project, without mixing it with other projects. The functions of the developer at each stage of management of the development project are defined, and also sources of its financing at various stages of realization are offered taking into account experience of the European countries.