Formation of the real estate market under martial law in Lviv
Students Name: Khavar Maksym Volodymyrovych
Qualification Level: magister
Speciality: Land and Real Estate Valuation
Institute: Institute of Geodesy
Mode of Study: full
Academic Year: 2023-2024 н.р.
Language of Defence: ukrainian
Abstract: Economic development of each country, including Ukraine, at this stage of time is accompanied by the formation and development of its markets: financial, commodity, labour, etc. As part of this system of markets, the real estate market also functions and develops, and it belongs to the commodity market by its form and to the financial market by its economic content. Thus, by the concept of the real estate market we mean an integrated category that has features of the investment, goods and services markets. The main factors affecting the formation of the real estate pricing policy in different segments of the market under martial law include external and internal factors. External factors include those that affect a certain regional level or the country as a whole and are closely related to the development trends of global markets with their banking and financial systems, as well as hostilities and wars in certain territories. Internal factors include: political, economic, social, scientific and technical, market, demographic and natural geographical factors. For the practical implementation of the theoretical provisions, the real estate market of Lviv by its main segments is selected. The article analyses the regulatory, legal, methodological, scientific and technical framework for the formation and functioning of the real estate market under martial law, as well as the achievements of the specialists of the Department of Territorial Cadastre of Lviv Polytechnic National University [1-9]. The article presents the essence of the definition of the category «real estate», its main characteristics and features, reveals the concept of the real estate market, its importance, functions and features, role and place in the capital market. The main directions of state regulation in the field of real estate are highlighted. The main factors that affect the value of real estate during martial law are formed. The application of GIS-technologies in the process of collecting, analysing, processing and validating data on the real estate market is substantiated. The article analyses the formation of the real estate market by its main segments under martial law: the primary and secondary markets of apartments, households, office, retail, industrial and warehouse real estate and the market of land for residential development, and their sale. The price indicators are offered in the context of administrative districts of Lviv, taking into account the area of real estate objects and quarterly dynamics of price changes for the period 2022-2023. The object of research is the real estate market. The subject of the study is the formation of the real estate market under martial law in Lviv. The purpose of the research: the master’s qualification work is to identify the main factors that influence the formation and functioning of the real estate market in Lviv under martial law and to study the price indicators of the average and median value of its segments for sale. Research results. The real estate market during martial law is significantly affected by various economic, political and social factors. Some of the possible negative effects on the market in the context of the war include: reduced market activity; decrease or increase in property prices in certain regions; loss of property value due to destruction; delayed construction and development; reduced availability of mortgages and financing; displacement of population; changes in the legal environment, etc. The article presents the essential characteristics of real estate and its common classification. Attention is focused on the importance of the real estate market, taking into account its role and place in the capital market, and the relationship between financial markets and the real estate market is schematically reflected. Important directions of state regulation in the real estate sector and its main subsystems and important functions are substantiated. The main factors that affect the value of real estate in a full-scale war are revealed. The author provides a methodical systematisation of the sequence of real estate market research, and highlights the stages of the process of collecting, analysing, processing and validating the array of collected data using GIS-technologies. A study of price indicators of the average and median value of the cost per 1 m2 in USD is formulated by the main segments of the real estate market, for their sale, by administrative-territorial division of Lviv, quarterly dynamics of changes in these data for the period 2022-2023, number of rooms in an apartment or area of other real estate objects. Our research shows that the real estate market is quite resilient to risk fluctuations caused by the military operations in Ukraine, as it is not the first time it has experienced difficulties and challenges, but it clearly shows its resilience and ability to function in extremely difficult conditions. Keywords: real estate, real estate market, GIS-technologies, price indicators, average and median values, martial law. References: 1. Civil Code of Ukraine, Codes of Ukraine №435-IV (2003, 16 January) (Ukraine). Bulletin of the Verkhovna Rada of Ukraine, (40-44). 2. Land Code of Ukraine, Codes of Ukraine №2768-III (2001, 25 October) (Ukraine). Bulletin of the Verkhovna Rada of Ukraine, (3-4). 3. On the Valuation of Property, Property Rights and Professional Valuation Activity in Ukraine, Law of Ukraine №2658-III (2001, 12 July) (Ukraine). Bulletin of the Verkhovna Rada of Ukraine (47). 4. On Land Valuation, Law of Ukraine №1378-IV (2003, 11 December) (Ukraine). Bulletin of the Verkhovna Rada of Ukraine, (15). 5. On State Registration of Real Rights to Immovable Property and Their Encumbrances, Law of Ukraine №1952-IV (2004, 1 July) (Ukraine). Bulletin of the Verkhovna Rada of Ukraine, (51). 6. Hubar, Y., Khavar, Y., & Moshovska, N. (2020). Tools for researching the real estate market and establishing general trends in its development. Modern achievements of geodetic science and production, 2, 102-116. 7. Hubar Y., Khavar Y., Gulko O., & Ivakhniuk H. (2021). Analysis of world experience for the formation of the land market in Ukraine. 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