PARAMETERS OF THE REAL ESTATE MARKET AS A BUSINESS ENVIRONMENT

Abstract

One of the key sectors of the market economy is the real estate market. This is due to the fact that housing is a basic need of a person and an important aspect of his life, as well as the processes in the residential real estate market are of great importance for the economic development of the country in general. It was determined that the real estate market is an economic phenomenon arising from the unique properties of real estate as a special good. Consideration of real estate as a socio-economic phenomenon and identification of its generic characteristics allows defining the real estate market as a system of relations between sellers and customers operating on the basis of the price mechanism and taking into account the social significance, legal regime of ownership, natural properties and generic characteristics of real estate. Different aspects of the real estate market are considered, its functions are clarified and the subject structure is defined. The main factors that influence the process of real estate price formation are identified and described. In general, these factors are conditionally divided into three groups or levels: global, local and characteristics of a particular property. The analysis of each of these groups allowed us to get a more complete picture of the impact of different factors on the dynamics of pricing in the real estate market. The situation on the real estate market in Ukraine during the war is also quite unstable and varies depending on many factors. It is analysed that real estate loses value in the areas of direct military conflict due to destruction, danger to life and a decrease in the attractiveness of these areas for living. In addition, hostilities lead to a postponement of investments in the construction of new real estate and the development of relevant infrastructure projects. The study revealed the problem of housing in Ukraine due to a significant difference in the cost of real estate compared to the income of the population, which prevents most Ukrainians from purchasing their own housing. The supply exceeds effective demand, and prices do not reflect this situation, indicating an imperfection in the market mechanism, which should be addressed by the state. The authors developed a model of the interrelationship of the price per 1 square meter of real estate on the primary market of Kyiv. This model includes the factors of the volume of square meters taken into operation in the city of Kyiv, the inflation rate, the gross regional product per capita, the discount rate of the National Bank of Ukraine, and the consumer sentiment index.