Real Estate Market of Ukraine

The purpose of this chapter is to define real estate as land and land improvements, namely buildings, structures, infrastructure facilities, etc., located on a plot of land. The fact that the land is inextricably linked with the objects located on it is determined. To substantiate this statement, the authors reviewed the relevant laws of Ukraine and highlighted the main characteristics of real estate. The authors set the task of studying land as the most important element of real estate. The task set by the authors was carried out with the help of a detailed analysis of normative acts and relevant laws of Ukraine. As a result, discrepancies were identified in the definitions of the terms “real estate” and “immovable property”, as well as the main components of real estate. Such definitions as “immovable property” and “immovable property” are reflected in the relevant schemes. It has been proven that land is the most important element of real estate, which is why the description of any real estate object must necessarily be related to land. In this chapter, the authors considered the real estate object, which includes not only land but also improvements, as a product of the interaction of all factors of production. Each of these factors contributes to the value of the property. The acquisition of rights to any real estate must consider the acquisition of the right to land. This is one of the important circumstances that determine the value of the land. And this problem does not have an appropriate legal solution in Ukraine today.

The purpose of this chapter is to determine the level of interaction between the country’s economy and the real estate market. That is, how changes in the economy affect the dynamics of the development of the real estate market and how the dynamic development of the real estate market affects the growth of certain sectors of the economy. The investigated trends in the real estate market in 2021 and the beginning of 2022 determined that, despite the pandemic and the economic crisis, the demand for housing on average in Ukraine increased by 30–35% in the primary and 30% in the secondary real estate markets. The authors investigated the peculiarities of the development of the modern real estate market in Ukraine. In this chapter, the authors present practical studies of the real estate market of Ukraine with examples of the dynamics of the development of various objects. The authors investigated the peculiarities of the development of the rental market. The rental housing market is dynamic today. The rental market affects the real estate sales market and has a significant impact on the future strategies of developers within the urban economy of each individual settlement. The chapter classifies the apartment rental market according to parameters that significantly affect prices in the studied segment. These parameters affect the market value of the real estate. As a practical implementation, an information-digital map of the dependence of the average rental price of “hotels” and 1-room, 2-room, and 3-room apartments on the location was developed using GOOGLE MAP and using the example of the city of Kharkiv. The authors proved that the housing market is developing despite the unstable economic situation, the devaluation of the hryvnia, and the decrease in the income of the population. It is illustrated that the cost of renting an apartment depends on the location (this factor became especially relevant in wartime), the condition of the building, the transport infrastructure, and the condition of the real estate object itself. This section analyzes the market of small housing as a new social phenomenon in large cities in Ukraine. It has been proven that the primary real estate market is not sufficiently transparent in the general system of the country’s economy. It functions only in interaction with the secondary market of real estate and is developing very rapidly due to the existing high demand for newly built real estate in central areas and areas located near transport highways and metro stations. In this chapter, the authors also analyzed the market value of the land plot, which is directly proportional to the city’s infrastructure.

The purpose of this chapter is to conduct a study of aspects of modeling the most attractive location of real estate objects. As a result of the conducted research, an algorithm was developed for the method of modeling the most attractive location of the real estate object. The proposed algorithm will allow you to choose the right place for the location of the future real estate object. And consider the specifics of the object, which is important for assessing its profitability. The authors proved that the construction of visual models for analysis is one of the most important stages of choosing the optimal location of real estate. The authors made conclusions about the common features of the location of cultural centers (art centers) and shopping centers, since one of the most important factors affecting the location is profitability. In this chapter, the authors analyzed all popular models for calculating the most attractive location of a real estate object. The authors proposed a method of choosing the most attractive location for such objects. Thus, it was determined that the authors' use of such methods as “calculation by trade area”, “multiple regression method”, and “gravity method” leads to the best results.

The purpose of this chapter was to consider the practical aspects of modeling the most attractive location of real estate objects. The search for the most attractive location for a new shopping center was carried out using the example of the city of Kharkiv. The authors created a geoinformation model using the ArcGIS software environment. The authors analyzed the current trends of the trade market and made conclusions regarding the three main factors of placing such a real estate object as a shopping center:In this section, the task of processing topographic and geodetic data and related information was solved. The authors implemented the task using spatial analysis using existing ArcGIS software modules. The model of this process was created using spatial objects. Relationships between objects are modeled using spatial analysis tools. During the simulation, traditional database operations were combined with the advantages of full visualization and spatial analysis on a digital map. Thus, the possibilities of GIS for processing various formats of spatial information of the urban geosystem of a large city were used in the model developed in the development of various options for the further development of urban infrastructure. The authors have developed a geodatabase with a large amount of data. Thus, the possibilities of further spatial analysis of the created maps—schemes in the geoinformation system—were expanded. Thus, in this chapter, the authors proposed an algorithm for choosing the optimal place for the location of the real estate object, considering its specific properties.

The purpose of this chapter was to consider such an industry as construction, and the levers that affect the construction of residential real estate, the cost of construction, and the value of the real estate, constantly influencing the market value of the real estate in the market. The authors have thoroughly researched and identified the factors that affect the market value of the real estate. As a result of the conducted research, a conclusion was made regarding the value of the real estate and trends in the further development of the real estate market and the construction industry. Economic, political, and market factors were considered in more detail. The factors under the influence of which the development trends of the real estate market of Ukraine were formed in 2021 and at the beginning of 2022 are listed. The authors used geoinformation systems to identify trends and patterns of influence of the construction industry on the real estate market.

The purpose of this chapter was to consider such an industry as construction, and the levers that affect the construction of residential real estate, the cost of construction, and the value of the real estate, constantly influencing the market value of the real estate in the market. The authors have thoroughly researched and identified the factors that affect the market value of the real estate. As a result of the conducted research, a conclusion was made regarding the value of the real estate and trends in the further development of the real estate market and the construction industry. Economic, political, and market factors were considered in more detail. The factors under the influence of which the development trends of the real estate market of Ukraine were formed in 2021 and at the beginning of 2022 are listed. The authors used geoinformation systems to identify trends and patterns of influence of the construction industry on the real estate market.

The purpose of this chapter was to consider the situation in the real estate market because of the war between Russia and Ukraine. It is quite difficult to predict in detail the situation in the real estate market after the end of the war in Ukraine since the extent of the destruction is unclear. But it can be argued that after the end of hostilities, the demand for housing among Ukrainians will be significant. The authors assume that the lull in the real estate market of Ukraine is a temporary phenomenon, after the record growth in 2021. When the threat of war recedes into the background, the market will begin to revive. The authors present the analysis of changes in the value of various types of real estate during the 2022 military year. The studied trends were presented with the help of a geoinformation system on information-digital maps in a visual form. The authors formulated forecasts for the post-war period and emphasized that the recovery of the real estate market and the economy of Ukraine will happen. These trends will lead Ukraine to the leading country in Europe. And the real estate market of Ukraine will become very attractive for investors from all over the world.