REIT Real Estate Funds: Global Experience and Development Prospects in Ukraine

Abstract

The formation of an investment strategy requires a systematic analysis of key trends in the capital market, an objective assessment of the effectiveness of investment instruments, which are important conditions for making financial decisions. Despite the traditional popularity of real estate investments in Ukraine, modern realities force investors to look for more flexible and diversified tools. REIT funds, as a new tool on the Ukrainian market, offer investors the opportunity to receive passive income from real estate without the need to directly manage objects. However, the lack of sufficient experience of investing in REITs in Ukraine, as well as the unstable economic and political situation, migration, create additional risks for investors. Therefore, a detailed study of this tool is an urgent task for understanding its potential.

The purpose of this article is the issue of REIT research in the context of modern investment trends and the instability of financial markets, the reliability of REIT, the development of analysis methods and the formation of recommendations for the formation of investment strategies. To achieve the goal, the following tasks were solved in the research process: the practice of REIT financial instruments in the world was considered; defined advantages and limitations of this investment instrument; proposed elements of analysis as components of financial decisions.

The results of the study prove that investments in REIT funds allow you to diversify the investment portfolio by distributing it between different real estate objects. However, like any other investment, REITs involve risks, such as market volatility and the possibility of wrong fund selection. To accurately assess them and create an optimal market strategy, we suggest using analysis methods that include macroeconomic analysis to determine general market trends, company evaluation, and assessment of the investment attractiveness of securities. Today, investing in REIT funds can be an addition to the investment portfolio, providing diversification and access to the real estate market, but the analyst must calculate many factors to establish a fair price - macroeconomic conditions, share price, the scale of the company's activities, its advantages compared to competitors. It is recommended to diversify not only the portfolio, but also the types of real estate, giving preference, depending on the strategy, to REIT funds of high-tech industries or REITs with a balanced portfolio.

The introduction of REITs has significant potential, can become a powerful stimulus for the development of the Ukrainian real estate market and change its financial landscape, open new opportunities for investors and attract capital to this sector. For this, it is important to improve the regulatory framework in Ukraine and control mechanisms for effective response to new challenges.