Rebuilding cities in post-war conditions: three main aspects

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Arbitrage in the real estate market is expensive, as the purchase of real estate involves transaction and holding costs, as well as tax burdens. The risk aversion, high cost, and low liquidity of real estate compared to other investments make the reservation price of real estate very specific and different for each buyer.

Real estate is considered the best means of saving in times of high inflation, unstable markets and unsatisfactory pension systems. Real estate attracts investors in conditions of uncertainty in the stock markets, allows you to diversify risks. The decision to purchase real estate is made regardless of the potential profit from renting it out.

This is an important feature of understanding the formation of real estate prices, they are special database less dependent on its profitability than financial assets. Real estate prices will constantly grow, and investors believe in their continued constant growth.

All of these factors can affect a buyer's perception of the value of a property. Due to the limited supply of new properties, property prices can fluctuate throughout the market cycle. The value of a property typically revolves around its replacement value, which is determined by construction costs, land prices, and other important factors. As a result, property prices are subject to significant fluctuations depending on market conditions.


To achieve resilience after significant destruction, cities in post-war conditions need urban regeneration projects. These projects can only see the light of day through strategic post-war policies. Historical parts of cities often fall into disrepair, and heritage preservation becomes a priority due to the risk of losing identity.