Rakytska S., PhD (Economics), Associate Professor, Associate Professor of the Department of Economics and Entrepreneurship, Odessa State Academy of Civil Engineering and Architecture, Odessa, Ukraine

ORCID ID: 0000-0002-0874-6670
e-mail: svetlana.rakitska@gmail.com

Zhus O., PhD (Economics), Associate Professor of the Department of Economics Enterprise, Odessa State Academy of Civil Engineering and Architecture, Odessa, Ukraine

ORCID ID: 0000-0001-5734-9375
e-mail: jusenok@ukr.net

Ghoncharenko N., Master’s of the Odessa State Academy of Civil Engineering and Architecture, Odessa, Ukraine

Stakeholder Interests in the Primary Residential Property Market

Abstract. Introduction. Provision of quality housing is an important factor in the socio-economic development of the country. Housing is the basis for creating comfortable and safe living conditions and performs a significant social function. In a market environment, construction activity is a profit-oriented business, but the market mechanism leads to a violation of the interests of certain stakeholders. It is necessary to find out the nature of the relationship of market actors in the process of development of the territory, and possible conflicts of interest that arise as a result of contradictions between the social load of the construction industry and the commercial principles of its functioning.

Purpose. The purpose of this article is to analyze the interests of stakeholders in the construction market, to study the current market conditions of the residential real estate market, and to justify the feasibility of influencing market entities in order to resolve existing conflicts of interest.

Results. An analysis of macroeconomic factors has shown that, under the current conditions, residential real estate has become a financial instrument for both saving and accumulating savings. The low level of living space and the desire to buy real estate in order to improve living conditions is exacerbated by the housing needs of internally displaced persons. However, demand for real estate in Ukraine is significantly limited by the level of purchasing power of the population and insufficient mortgage lending. Excessive supply leads to increased competition among developers, which contributes to the chaotic construction on a “point” principle and creates an additional burden on existing infrastructure.

Conclusions. Effective functioning of the residential real estate market must be consistent with the processes of creating the necessary social, transport, communal infrastructure. This will take full account of public and public interests.

Keywords: construction market; stakeholders; residential real estate market; market conditions; regulatory factors; supply and demand.

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