Profitability and return on investment in urban areas

Abstract

This article examines the correlation between investment and a high cost of land in the region. The author presents an approach to calculating returns on investment based on a corresponding model. Special attention is paid to analysing the nature of investment in certain parcels of land. The article esti-mates the role of investment tools in solving the problem of sporadic develop-ment of urban spaces. The proposed model makes it possible to conduct a pre-dictive spatial analysis of investment activity to identify the priorities of urban development at the level of individual parcels of land.