Economic potential growth management of real estate development company in the conditions of quarantine restrictions

Abstract

Restrictive measures adopted by the resolutions of Cabinet of Ministers of Ukraine have affected all spheres of life of Ukrainians, including business. Negative impact of quarantine restrictions on real estate market has set a challenge for development companies to rapidly adopt to new realities of conducting business processes and especially customer relationship. Being expected as a short-term necessity, quarantine is being constantly prolonged, bringing a high level of uncertainty in strategic planning and growth management of enterprises, including real estate development companies. Conducted analysis of development companies’ behavior during the first three months of quarantine (from 12.03.2020 till 12.06.2020) distinguished several different approaches developers chose to maintain their competitiveness and minimize the losses of their economic potentials. Protectionism policy, applied by key players in real estate market mainly in the first month of quarantine, negatively affected their economic potential growth rates and, correspondingly, competitive environment of the market, giving additional possibilities and advantages to smaller and more flexible development companies.