Real Estate Market: Trends and Developments

Abstract

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.