Regional aspects of low-rise construction economics

Abstract

Importance: the Low-rise construction in Russia is becoming particularly important against the background of the growing glut of the market with apartment buildings, which, due to their scale and density of buildings, generate many socio-economic problems. Purpose: to identify the economic aspects, parameters and properties that affect the development of lowrise construction in order to identify growth prospects, taking into account existing challenges and opportunities. Research design: the economic aspects and prospects for the development of low-rise housing construction are considered in the context of an oversupply of the market with apartment buildings. The author analyzes current trends in the construction industry, providing statistical data on the share of individual housing construction in the total volume of commissioned housing. Special attention is paid to comparing the cost per square meter in low-rise buildings and new apartment buildings, which makes it possible to highlight the economic advantages of low-rise housing construction. The paper also examines the key problems faced by developers: high infrastructure costs, difficulties in localizing projects, as well as a lack of regulatory regulation and high costs of connecting to resource-supplying networks. The cost structure of developers is analyzed and it is noted that the cost of low-rise construction is higher than that of high-rise construction, but it is offset by a number of advantages, such as reduced construction time and affordability for the end user. Results: the implementation of low-rise housing construction, taking into account the territorial and sectoral indicators of the modern economic space, is possible within the framework of the updated and improved paradigm of determinants of the development of low-rise housing proposed by the author.