The subject of this study is the assessment of the investment climate in the construction sector,the identification of key challenges and institutional factors influencing the processes of managingstrategic transformations of construction enterprises–stakeholders. The research examines economic,regulatory, and social aspects that determine the attractiveness of investments in the constructionsector, as well as the factors that either constrain or stimulate the long–term development of theindustry. Special attention is paid to the analysis of the institutional environment, covering governmentpolicies, legal mechanisms, financial support, and international regulatory standards.The study also explores stakeholder interactions, including investors, government authorities,construction companies, financial institutions, and public organizations. It has been established thateffective management of investment flows and strategic transformations is possible only under abalanced market regulation approach, stimulation of innovative strategies, and the use of analyticaltools for forecasting market changes.The purpose of this study is to analyze the investment climate and define the methodologicalfoundations for managing the strategic transformations of construction enterprises while consideringinstitutional factors and market challenges. The main focus is on developing approaches to assessingthe level of investment attractiveness in the construction sector, identifying barriers to development,and formulating recommendations to improve the efficiency of investment attraction.The study examines key macroeconomic and microeconomic factors affecting the strategic planningof construction enterprises and their adaptation to new market conditions. An analytical approach tomodeling transformational processes is proposed, which allows evaluating the effectiveness of changemanagement, optimizing investment strategies, and enhancing the competitiveness of constructioncompanies in the long–term perspective.The research methodology is based on systemic and structural–functional approaches, whichallow for the assessment of the interrelationship between institutional factors, investment climate, andmechanisms of strategic transformations in construction enterprises. Within the study, an analysisof the investment environment was conducted using comparative analysis methods and economic–statistical modeling. Key indicators such as the level of foreign direct investment, construction marketdynamics, regulatory changes, and the innovation potential of enterprises were evaluated, enablingthe identification of major trends and challenges for the industry.A crucial stage of the study involved identifying the key challenges and risks affecting thedevelopment of the construction sector. For this purpose, a SWOT analysis method was applied,allowing for an evaluation of the strengths and weaknesses of the sector, potential opportunities, andthreats posed by the macroeconomic environment. This was supplemented by expert assessmentmethods, which helped highlight the most pressing issues that hamper investment activity and reducethe effectiveness of strategic transformations.One of the key directions of the research was the examination of institutional factors influencing theinvestment climate in the construction sector. In this context, a comparative analysis of legal mechanismsgoverning investment conditions was carried out. The study considered tax incentives, investmentbenefits, state support programs, and compliance with international market regulation standards.The analysis of strategic transformations in enterprises was conducted using scenario forecasting,econometric analysis, and structural modeling methods. Various approaches to optimizing businessmodels, digital transformation, improving resource efficiency, and implementing innovations were explored,providing a comprehensive view of enterprise adaptation mechanisms in dynamic market conditions.Based on the obtained results, recommendations for improving the investment climate weredeveloped, focusing on an investment management model that considers market challenges andregulatory specifics. Mechanisms for enhancing the institutional environment were identified,aimed at increasing market transparency, reducing investment risks, and stimulating the strategicdevelopment of stakeholder enterprises.Thus, the research methodology not only facilitates the identification of optimal investment attractionstrategies but also enhances risk management efficiency and contributes to the development of scientificallygrounded approaches for implementing strategic transformations in the construction industry.Research Results. The study analyzed institutional factors that determine the investment climateand strategic transformations of construction enterprises. It was established that the effectivenessof strategic change management in the construction industry largely depends on the regulatoryenvironment, economic stability, state investment policies, and the innovation activity of enterprises.A comprehensive analysis of macro– and microeconomic indicators was conducted, allowing for anassessment of the key challenges affecting the development of the construction sector, includingbarriers to attracting investment and factors contributing to the stable growth of the industry.The research confirmed the importance of strategic approaches to change management, particularlythrough the implementation of digital technologies, process automation, and modernization ofmanagement mechanisms. The analysis of the institutional environment demonstrated that thelegal regulatory framework, tax incentives, access to financial resources, and government supportmeasures significantly impact the level of investment activity in the sector.A model for investment management was developed, taking into account market challenges andregulatory specifics, enabling enterprises to adapt to shifts in market conditions. Additionally, thestudy confirmed the effectiveness of econometric analysis and scenario forecasting in evaluating thelong–term sustainability of enterprises.The proposed recommendations are aimed at enhancing the transparency of the constructionmarket, optimizing investment processes, and creating favorable conditions for the strategicdevelopment of enterprises.Conclusions. The conducted study confirmed that strategic transformations of constructionenterprises depend on the quality of the investment climate, the efficiency of institutional regulation,and the ability to adapt to modern economic challenges. Institutional factors, including legal regulations,financial policies, and international standards, play a key role in determining inve Significant attention was given to the need for an integrated system of investment flow management,which would allow more efficient resource utilization, risk minimization, and stable enterprise growth.A crucial role in this process is played by digital technologies, which contribute to process automation,improved analytics, and increased transparency in investment activities.The study demonstrated that optimizing management strategies in the construction industry ispossible if both internal and external factors influencing market dynamics are taken into account.The successful implementation of strategic transformations requires active cooperation betweenthe state, investors, enterprises, and financial institutions, which would contribute to enhancing thesector’s investment attractiveness.Thus, the study confirms the necessity of a comprehensive approach to managing strategictransformations, which includes the use of innovative models, digital tools, and adaptive managementstrategies. The proposed approaches and recommendations can serve as a foundation for thedevelopment of new mechanisms aimed at increasing the competitiveness of construction enterprisesin the long–term perspective.