Olga Petrakovska, Yurii Tatsii

The role of commercial real estate to the urban sustainable development

View full text in PDF format

Abstract

Economic reforms in Ukraine continued for 20 years and were accompanied by the development of the land and real estate markets, appearance of new property owners and the formation of new relationships between them. In a market economy fundamentally changing requirements, social and economic mechanisms concerning the regulation of land use. Moreover the reforms are characterized by social and economic stratification of population and as result alteration of needs and interests of different categories and groups of residents. Transitions from a planned to a market economy have totally changed the investment sources too. Most of the objects that address the needs of the urban population or visitors of cities become the profitable real estate and increasingly built on a commercial basis. Dwelling, retail, office and hotel real estate belongs to such objects. Because of the constant reduce of local budgets, commercial real estate begins to play a significant role in the population vital activity, economic and spatial development of cities. Modern technologies allow and facilitate more intensive and complex land use. It is obvious that investor is interested in the use that can bring maximum profit. But great industrialization and concentration of population leads to excessive anthropogenic impact on urban areas and even more often create negative social and environmental stresses.

Keywords:commercial real estate; urban sustainable development.