THEORETICAL PRINCIPLES OF RISK ASSESSMENT OF INVESTMENT IN HOUSING CONSTRUCTION

The purpose of this study is to develop the theoretical basis for assessing the level of risks of investing in housing construction. The need for such an assessment is due to the fact that the process of housing construction is characterized by a fairly significant level of investment risks. These risks; to one degree or another; are borne by most of the participants in the mentioned process; in particular; investors and developers. Therefore; it is important to develop and implement effective mechanisms for reducing the risks of investing in residential construction. At the same time; the creation of these mechanisms should be preceded by a detailed assessment of the existing level of investment risks in the field of housing construction. In this work; it is noted that measuring the risks of subjects investing in the construction of housing requires the preliminary formation of a sufficiently wide array of information necessary for this. Three groups of main indicators are proposed; with the help of which it is possible to measure the existing risk of investing in residential construction; namely: 1) indicators of the frequency of occurrence of relevant risk events; 2) specific indicators of the magnitude of such an occurrence 3) relative indicators of the magnitude of risk events that occur during the course of the investment process in housing construction. In turn; the following three main risk events are highlighted: an unpredictable increase in the cost of construction; deterioration of the consumer properties of residential premises compared to the previously determined level of these properties; delay in commissioning residential premises. A sample of construction organizations of the western region of Ukraine was formed. At the same time; a total of 60 such enterprises engaged in residential construction were selected. It was found out that according to the sample of construction companies under investigation; the most common risk event was untimely commissioning of housing. During the reporting year; this event took place in 56 out of 60 developers under consideration; while in 38 of them between 30% and 40% of the square meters of residential buildings were handed over late. The application of the proposed system of indicators for assessing the risks of investing in residential construction will provide an opportunity to identify reserves for reducing the level of these risks.