Digest Finance

Specifics of Evaluating the Efficiency of Development Investment Projects

Vol. 23, Iss. 2, JUNE 2018

PDF  Article PDF Version

Received: 15 August 2017

Received in revised form: 14 September 2017

Accepted: 10 October 2017

Available online: 30 June 2018


JEL Classification: G24, O16

Pages: 150–162


Filin S.A. Plekhanov Russian University of Economics, Moscow, Russian Federation

ORCID id: not available

Marushkina V.A. Plekhanov Russian University of Economics, Moscow, Russian Federation

ORCID id: not available

Importance The research identifies the specifics of evaluating the efficiency of development investment projects.
Objectives We outline an algorithm for evaluating the efficiency of development investment projects, formalize the process and give recommendations for improving the evaluation process in line with the specifics of development projects and real estate market.
Methods The article employs methods of logic study, forecasting, analysis and synthesis through a systems and information processing approach. The article provides algorithms, including the one for formalizing and evaluating the efficiency of development projects through the specifics of their performance and real estate market.
Results We showcase the way the specifics of evaluating the efficiency of development investment projects directly relates to the main trends in the real estate development in Moscow so as to make an evaluation more accurate and unbiased. We propose a formalized algorithm for evaluating whether development construction and investment projects are effectively implemented, and provide our recommendations for improving the process.
Conclusions and Relevance The formalized algorithm for evaluating the developer project efficiency helps to make informed managerial decisions on investment and project performance and mitigate weaknesses of traditional methods as if each of them was used separately.

Keywords: real estate market, development, developer project, efficiency evaluation, residential property


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