Investment in Residential Real Estate: Problem Issues in the Period of the Full-Scale Invasion of the Russia in Ukraine
Year: 2026
Type: article
Abstract: The article examines the current trends in the development of the construction industry, taking into account the investments of stakeholders, and identifies the problematic issues of involving stakeholders (business, the population, the state) in investing in residential real estate. Since the beginning of the full-scale invasion of the Russian Federation in Ukraine, there has been a significant decrease in the specific weight of the construction industry in the creation of the gross domestic product in Ukraine, a decrease in the amount of capital investments of stakeholders, despite the actualization of the need for building construction. The involvement of stakeholders in investing in residential real estate is characterized by the recovery of public investment in residential real estate, the reduction of capital investments in the construction of buildings at the expense of the company’s own funds or bank loans, the activation of individual investments with the help of additional state programs launched in parallel with the reduction of budget expenditures in this area. Along with this, problematic issues were identified, consisting of: low solvent demand, the risk of blocking the completion of future residential real estate objects after destruction, in which individual investors have invested, the presence of risks of financial dependence on state aid when using state mortgage lending programs, ineffective tools for ensuring the rights of individual investors. Taking into account the identified problematic issues, priority tasks for the activation of stakeholder investment in residential real estate are proposed, taking into account the global experience of implementing housing policy. Priority tasks include: introduction of leasing schemes with tax benefits; expansion of financial instruments for saving for housing due to the introduction of housing construction and savings banks; improvement of the instrument of the priority right to receive compensation for damage to future objects of residential real estate; creation of the institution of the housing ombudsman to improve the information of individual investors, protect their rights and increase the transparency of the residential real estate market.
Author: S. Zavhorodnia
Institution: The National Institute for Strategic Studies
Language: English
Topic: Housing Market and Economics
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W7214901559