INVESTMENT IN RESIDENTIAL REAL ESTATE: TRENDS, MECHANISMS, INSTITUTIONAL OPPORTUNITIES

The article examines the current state of the residential real estate market in Ukraine, analyzes the average cost of residential real estate and the dynamics of real estate prices in terms of primary and secondary markets for 2016–2020. It is established that the process of investing in residential real estate in Ukraine is influenced by foreign trends investing in the real estate market and remains one of the most effective areas of investment for both able-bodied citizens and businesses, there is an increase in real estate prices. Supply in the residential real estate market in 2020 is significantly reduced; there is a redistribution of the market from economy class housing to comfort class. This gives grounds to characterize the residential real estate market as active, not overheated, with a stable demand for residential real estate despite the impact of the pandemic factor. It is established that the current mechanisms and tools for attracting investment to finance housing construction in Ukraine have both positive and negative trends for all participants in construction. Investors' ways of buying a home are associated with an increased risk of investment: some have been found to be reinvestment in real estate for profit. They occur in Ukraine, despite the high risk-oriented investment in real estate under construction and the tendency of Ukrainian developers to violate their obligations to investors. The low institutional capacity of the state at the present stage is substantiated, which is explained by the lack of a proper institution of regulation of the residential real estate investment market and the insufficiency of public-private partnership mechanisms. A number of key features of residential real estate as an object of investment are highlighted, recommendations are developed and presented that reduce the negative consequences of significant financial and operational risks of investment projects in the field of housing construction.