TRENDS AND CURRENT SHIFTS IN THE INVESTMENT ENVIRONMENT IN THE RESIDENTIAL REAL ESTATE MARKET
DOI:
https://doi.org/10.31649/ins.2021.1.40.45Keywords:
investment attractiveness, real estate market, housing market, market functions, residential real estate investmentAbstract
The article analyzes the development trends of the primary and secondary residential real estate market in Ukraine for 2020-2021 and identifies the main changes in the investment environment in this market. The economic essence of the concept of "investment attractiveness" and related concepts "investment process", "investment activity" and "investment climate" are clarified. A comparative analysis of the investment attractiveness of residential real estate in different regions of Ukraine revealed that in 2020 the secondary housing market was more attractive for investment, but in 2021 the investment attractiveness of the primary and secondary residential real estate market generally deteriorated. It was found that the main reason for the decline in the investment attractiveness of the national housing stock is that in 2020-2021 apartment prices in the most attractive regions of Ukraine continued to grow, although their pace slowed down. It is substantiated that in order to intensify investment activity in the real estate market in Ukraine it is necessary to create a favorable investment climate for all business entities on a civilized basis and in accordance with the principles of transparency and social conditions. To improve the investment climate and improve the investment attractiveness of the residential real estate market, the Ukrainian government is recommended to develop effective measures aimed at significantly reducing mortgage interest rates to a level where mortgages will be available to most citizens.
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