ORGANIZATIONAL-ECONOMIC MECHANISM OF THE FUNCTIONING OF UKRAINE’S REAL ESTATE MARKET: THEORETICAL AND INSTITUTIONAL ASPECTS

Abstract

The article substantiates the theoretical and institutional aspects of the organizational-economic mechanism governing the functioning of Ukraine’s real estate market amidst economic instability and wartime challenges. It is established that the stability and resilience of the market depend not only on the existence of regulatory instruments but also on the coherence of their application and the capacity of institutions to facilitate interaction among market participants. Utilizing a structural-functional approach, the study defines the essence of the organizational-economic mechanism as an integrated system of interconnected elements that shape the conditions for the circulation, utilization, and reproduction of real estate assets. The functional roles of various components—regulatory-legal, institutional-organizational, land-use and urban planning, market infrastructure, valuation and pricing, financial-credit and investment, competitive, tax-economic, information-analytical, and supervisory—are identified. For each component, the theoretical foundations are distinguished from the institutional frameworks required for practical implementation. It is determined that the interdependence of these structural elements necessitates a comprehensive analysis that accounts for the specific characteristics of the institutional environment. The study argues that the effectiveness of the mechanism is contingent upon the protection of property rights, the transparency of market procedures, and the proper coordination between state and non-state institutions. Furthermore, the article emphasizes the need to adapt the mechanism to address risks such as physical damage to real estate, limited financing, and shifts in the spatial distribution of demand. Priorities for its improvement have been identified, focusing on the development of recovery financing instruments, war risk insurance, the refinement of damaged property valuation, and the integration of digital information systems. The importance of institutional coherence is emphasized for enhancing the market’s investment appeal, ensuring housing security for the population, and facilitating the post-war recovery of Ukraine’s economy.