Year: 2022 | Month: October | Volume 67 | Issue 4s
The Impact of the Russian-Ukrainian War on the Development of the Primary Residential Real Estate Market in Ukraine: Results of a Cluster Analysis
Ihor Hrabynskyi
Iryna Prykhodko
Volodymyr Halanets
Liubov Prokopyshyn-Rashkevych
Alexander Adamovsky
Ivan Zhygalo
DOI:10.46852/0424-2513.4s.2022.17
Abstract:
The war started by the Russian Federation has caused significant damage to all areas of the life of Ukrainians. The realities of the Russian-Ukrainian war have led to an increase in prices in the primary market of residential real estate, a decrease in the number of new buildings for sale, and a decrease in the percentage of the area of residential buildings put into operation compared to the period of the previous year, and a decrease in the number of apartments sold. Like other areas of the economy, the real estate market has experienced significant upheavals. The research showed that each region was affected differently by the consequences of the Russian-Ukrainian war. The article groups the areas of Ukraine according to the level of influence of the Russian-Ukrainian war on the development of the primary residential real estate market. To achieve this goal, an agglomerative hierarchical type of clustering was used. To measure the distance between objects, the Euclidean distance is calculated. The complete linkage method was used to determine the distances between clusters. For the study, those indicators that best characterize the changes in the functioning of the market and are publicly available were chosen, in particular: average price per month, number of new buildings for sale, the total area of the residential buildings put into operation, number of registered internally displaced persons. Clustering made it possible to identify disparities in the development of Ukraine’s regions. According to the cluster analysis results, 5 clusters of areas of Ukraine were distinguished according to the level of influence of the Russian-Ukrainian war on the development of the primary residential real estate market. The heterogeneity in the adaptation of the real estate market to the conditions of military operations and its evolution during the war should be taken into account by state authorities when developing strategies for the restoration of territories and forming optimal measures for the growth of the real estate market for a particular region, taking into account its characteristics.
Highlights
- The article groups the areas of Ukraine according to the level of influence of the Russian-Ukrainian war on the development of the primary residential real estate market. To achieve this goal, an agglomerative hierarchical type of clustering was used.
- The heterogeneity in the adaptation of the real estate market to the conditions of military operations and its evolution during the war should be taken into account by state authorities when developing strategies for the restoration of territories and forming optimal measures for the growth of the real estate market for a particular region, taking into account its characteristics.
© This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited
Print This Article Email This Article to Your Friend
