Константин Калинков

Abstract: The following article shows the connection and dependence between the spatial and economic development of the city. From economic point of view, the author displays the types of markets, functioning on the territory of the city, including the real estate market.
The aim of the author is to analyze the role of the functional approach to the development of the urban territory.
The article shows that the idea of the necessity of functional zoning of the urban territory originates from life, and it very logically comes up in some perspective and avant-garde for their time urban-structural projects, and is later set into and distributed by the Charter of Athens. The Charter underlines that the city should be functionally zoned, and it should include the following key functions: labour, habitation, recreation, and communication to interconnect them.
The spatial expansion of the city, based on economic development, causes the concentration of additional contingent of working population, which reflects functional system “Habitation”, and also the real estate market.
The thesis that the author defends, is that the real estate markets mainly influenced not by “location”, but by “habitationenvironment”.
In this direction, one should accept that a building is an element of habitation environment, and not an amount of square meters. The claim “location is everything” is being replaced by the claim “habitationenvironment”. 

Key words: functional approach, real estate market, urban environment, “Habitation” system, gentrification.

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