FUNCTIONAL-STRUCTURAL MODEL OF ANALYSIS OF HISTORIC AREAS AS SPATIAL DETERMINANTS OF REAL ESTATE VALUE

Abstract

The article examines the mechanism of incentive density bonuses as an innovative tool for balanced urban development, using Kyiv as a case study. This mechanism allows developers to increase maximum building density or floor area in exchange for providing socially significant facilities such as affordable housing, schools, healthcare institutions, recreational zones, and public spaces. The approach seeks to balance private investment interests with public needs and promote sustainable land use. Kyiv, as the largest metropolis of Ukraine, faces challenges related to housing shortages, overloaded infrastructure, and fragmented urban growth. Traditional regulatory methods often fail to ensure integration of social facilities into new projects. In contrast, density bonus systems applied in cities like New York, Toronto, and Barcelona demonstrate how such instruments can attract private investment while generating social benefits. The research is based on a review of Ukrainian and international literature, analysis of urban planning practices, and assessment of legal and economic land-use instruments. The study highlights works of Ukrainian scholars emphasizing the integration of legal, economic, spatial, and environmental aspects into land policy, as well as international cases illustrating different models of implementing density bonuses. The results propose a model of local building regulations for Kyiv that adapts density bonuses to Ukrainian legislation and urban context. Developers would be allowed to expand the scale or height of construction provided they ensure affordable housing, kindergartens, or green spaces. Key conditions include compliance with building norms, maintaining population density thresholds, and signing binding agreements with municipal authorities. The potential socio-economic effects of introducing density bonuses in Kyiv include reducing fiscal pressure on the municipal budget, improving accessibility of social infrastructure, enhancing quality of life, and increasing the city’s investment attractiveness. At the same time, strict monitoring mechanisms are required to prevent infrastructural overload or ecological imbalance. In conclusion, incentive density bonuses may serve as an effective planning instrument for Kyiv, combining international experience with sustainable development goals and harmonizing the interests of communities, investors, and local authorities.