Financial instruments of investment in construction in the context of strategic development of development companies

Abstract

The article is devoted to the analysis of theoretical, methodological, and practical aspects of applying financial instruments for investment in construction to ensure the strategic development of developer companies in the context of modern economic realities, particularly in Ukraine during economic instability and military aggression. It is determined that the construction sector significantly contributes to economic recovery but is characterized by significant capital intensity and high risks. This necessitates the use of diversified financial instruments and innovative investment models that ensure stable financial flows, acceptable profitability, and risk minimization. The authors review domestic and international research, noting their contribution to the study of investment models, financial instruments, risk management, and economic conditions for construction development. The need for in-depth research on the adaptation of financial instruments to current conditions and the development of new models that consider the specifics of development projects is emphasized. Financial instruments are analyzed, including own funds, bank loans, state support, preliminary sale and purchase agreements, collective investment institutions, targeted bonds, options, foreign capital, crowdfunding, public-private partnerships, joint ventures, securities issuance, and venture capital. Each instrument is evaluated based on risk, profitability, capital availability, management control, flexibility, and adaptability to market changes. The strategic importance of choosing optimal investment models, PPPs, and crowdfunding is highlighted. The conclusion is drawn about the critical role of the correct selection and combination of financial instruments and models to support the competitiveness, financial stability, and sustainable development of construction enterprises.