The analysis of investment appeal of the regions of the Russian Federation for locating the residential and commercial non-industrial real estate

<p>The purpose of this research is the assessment of investment appeal of the regions of the Russian Federation for locating the residential and commercial non-industrial real estate. Main objectives of the research were to analyze existing assessment methods &nbsp;of investment appeal; assessment of investment appeal of the regions of the Russian Federation by factorial analysis methods and rating the regions according to those methods; grouping the regions on degrees of investment appeal and justification of the received results; visualization of the received results.</p><p>For each of the two types of real estate analyzed in the research the lists of indicators characterizing investment appeal of regions were selected. Values of indicators were taken from the state statistical agency web site. In total 22 indicators for residential real estate and 21 indicators for commercial non-industrial were selected. &nbsp;Among methods used to assess investment appeal of the regions and rating them were method of 20% groups, method of medians, method of private indexes and Sazykin&#39;s method. Comparing the ratings received in the research with direct &nbsp;investment numbers and indexes in residential and commercial real estate in the Russian regions, the most exact results were reached by Sazykin&#39;s method in relation to commercial non-industrial real estate. It can be explained by lack of local factors used in the model, which play a large role in locating the residential real estate, compared to commercial non-industrial.For descriptive reasons regions were grouped according to their rating results.</p><p>Summarizing the results of the research it is possible to note that currently Moscow and the Moscow region are the best among other Russian regions for investments in residential real estate. The cities of Moscow and St. Petersburg, the Moscow, Tyumen, Sakhalin regions, the Nenets Autonomous Area and the Republic of Tatarstan are the best among other regions for investments in commercial non-industrial real estate.</p>