MATEC Web Conf.
Volume 212, 20182018 International Scientific Conference “Investment, Construction, Real Estate: New Technologies and Special-Purpose Development Priorities” (ICRE 2018)
|Number of page(s)||9|
|Section||Transformation of the Real Estate Market: Economic, Legal, and Management Aspects|
|Published online||15 October 2018|
Comparative analysis of the functional behavior of costs for the construction of housing of the economy and comfort class
Baikal State University, 664003, Lenin str., 11, Irkutsk, Russia
* Corresponding author: firstname.lastname@example.org
The article considers the issue of increasing the investment attractiveness for the developer of massive construction of economy class housing by possible coverage of costs and formation of satisfactory financial results. The application of mathematical apparatus of the derivation of linear function and margin analysis allowed us to determine that in practice the developer companies solve the problem of low profitability of the economy class housing at the expense of more expensive comfort class housing objects, manipulating with the distribution of fixed costs. As a result, the possibility of covering the general management costs of the developer from one meter of housing of any class is equalized. The solution to the problem is seen in the creation of a database of standard economy class housing projects with the mandatory allocation of variable and constant construction costs for each type of facility per square meter of the completed housing. Such data will allow construction companies to take full advantage of the opportunities of margin analysis, including determining the lower limit of the price of a square meter, breakeven output and the financial result of both a single object (margin revenue of an object) and the organization as a whole for the reporting period. However, the market approach only will not solve this issue: the state support through the financing of the governmental programs will provide affordable housing for citizens.
© The Authors, published by EDP Sciences, 2018
This is an open access article distributed under the terms of the Creative Commons Attribution License 4.0 (http://creativecommons.org/licenses/by/4.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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