Real Estate Capital Investments in Ukraine in the Modern Realities

Abstract

The escalation of the situation due to the war and economic difficulties underscores the need for careful analysis, planning, and implementation of effective strategies to ensure stability and development of the real estate market in Ukraine. The destruction of cities and towns, the demolition of a significant portion of housing stock, and vital infrastructure only accentuate the necessity of seeking proactive approaches to real estate investment and financing involving both individuals and legal entities. It's important to take into account that due to the war, this process is accompanied by significant financial risks for investors. This article highlights key aspects of the real estate market in Ukraine, focusing on issues and challenges affecting investment activities. Particularly, attention is drawn to the insufficient satisfaction of investment resource needs, a characteristic phenomenon of modern economics. Investments oriented toward the future often clash with society's inclination to prioritize present needs. The article analyzes various definitions of "investment," including the purchase of financial and real assets aimed at development and production growth. Additionally, the role of real estate as a significant asset capable of generating stable income and consumer benefit is outlined. However, the authors emphasize that successful investment strategies require an effective approach to the investment process, minimizing risks and safeguarding investors from potential losses. The article delves into various problems associated with the functioning of the real estate market in Ukraine, including the ongoing military conflict, the overall economic condition, devastated infrastructure, uneven distribution of capital investments across regions, and the necessity for an effective investment policy to stimulate investments in real estate and the construction sector. Moreover, limited financial capabilities of the population due to uncertainties about future development and the war conflict are addressed. Nonetheless, considering trends, some positive shifts are identified, particularly in the direction of investment development in real estate and the construction sector. Approaches and possible solutions to these problems are analyzed, encompassing the stimulation of economic growth, enhancement of investment policies, and infrastructure development. It is established that a crucial step involves infrastructure development and creating favorable conditions for investors, along with the reform of permitting and judicial systems. The authors underscore the necessity of state regulation of investment activities and incentivizing capital investments. They call for further scientific research aimed at discovering innovative tools to support real estate investments and post-war recovery.