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Determinants of Housing Construction in Ukraine

Author

Listed:
  • Bochko Оlena

    (Department of Marketing and Logistics, Lviv Polytechnic National University, Ukraine)

  • Kosar Nataliia

    (Department of Marketing and Logistics, Lviv Polytechnic National University, Ukraine)

  • Kuzo Nataliia

    (Department of Marketing and Logistics, Lviv Polytechnic National University, Ukraine)

  • Bilyk Iryna

    (Department of Marketing and Logistics, Lviv Polytechnic National University, Ukraine)

  • Zarichna Olena

    (Department of Business-administration, Marketing and Management Uzhhorod National University, Ukraine)

Abstract

The work presents an analysis of the housing construction market in Ukraine. An economic and mathematic model was built to determine that the growth of the volume of housing construction in Ukraine had a positive impact on its GDP, due of a close relation between the two values. It is important to identify factors influencing the volume of housing construction. The obtained results prove that the greatest impact is made by consumer income, deposit rates in foreign currency, and the amount of consumer loans for buying, building and reconstruction of real estate assets; the numbers of marriages, investments in housing construction and interest rates for mortgage credits in UAH also have a significant impact. The elasticity coefficients reveal a positive impact of such factors as an increase of consumer income, growth of investments in housing construction, reduction of interest rates for mortgage credits and deposit rates in foreign currency, reduction of the amount of consumer loans for buying, building and reconstruction of real estate assets, and reduction of the number of marriages. Further development of the housing construction market requires appropriate conditions for the development of the banking sector in Ukraine and the growth of investments in the studied industry.

Suggested Citation

  • Bochko Оlena & Kosar Nataliia & Kuzo Nataliia & Bilyk Iryna & Zarichna Olena, 2022. "Determinants of Housing Construction in Ukraine," Real Estate Management and Valuation, Sciendo, vol. 30(3), pages 1-11, September.
    • Handle: RePEc:vrs:remava:v:30:y:2022:i:3:p:1-11:n:8
    DOI: 10.2478/remav-2022-0017
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    References listed on IDEAS

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    1. Xiaolin Zhai & Richard Reed & Anthony Mills, 2014. "Factors impeding the offsite production of housing construction in China: an investigation of current practice," Construction Management and Economics, Taylor & Francis Journals, vol. 32(1-2), pages 40-52, February.
    2. Rącka Izabela & Palicki Sławomir & Kostov Ivo, 2015. "State and Determinants of Real Estate Market Development in Central and Eastern European Countries on the Example of Poland and Bulgaria," Real Estate Management and Valuation, Sciendo, vol. 23(2), pages 77-90, June.
    3. Adams, Zeno & Füss, Roland, 2010. "Macroeconomic determinants of international housing markets," Journal of Housing Economics, Elsevier, vol. 19(1), pages 38-50, March.
    4. Linda Clarke & Georg Herrmann, 2004. "Cost vs. production: labour deployment and productivity in social housing construction in England, Scotland, Denmark and Germany," Construction Management and Economics, Taylor & Francis Journals, vol. 22(10), pages 1057-1066, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    housing construction market in Ukraine; consumer income; investments in housing construction; banking sector;
    All these keywords.

    JEL classification:

    • C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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