The article examines the factors influencing the functioning of the residential real estate sector, the real estate market situation, the competitive situation, and the investment attractiveness of the sector. It is emphasized that the role of residential real estate performs several functions in society, in particular, it satisfies the need for housing, is an object of economic activity, and acts as a mechanism in the implementation of the social policy of the State. The main stages of the formation of the strategy for the development of the residential real estate segment are allocated, it is worth taking into account the behavior patterns and requests of potential customers, in particular: the segmentation of the primary residential real estate market; identification of factors affecting consumer behavior; modeling the process of making a purchase decision: awareness of needs; assessment of financial opportunities; collection and analysis of information; assessment and selection of real estate options; the decision to purchase property; conclusion of an agreement. It is determined that it is expedient to introduce civilized relations between real estate market participants, which is possible by promoting the implementation of legislative initiatives aimed at introducing a housing construction financing model using escrow accounts and ensuring the guarantee of investors' rights regarding real estate objects, which are under construction. The own structure of the residential real estate market and participants in the market process are proposed, according to which the activity of regional markets, which are divided into primary and secondary markets, are indicators of the activity of national residential real estate markets. The subjects of the primary market are investors, creditors, designers, builders, developers, project organizations, construction companies or organizations; concerning the secondary market - realtors, brokers, appraisers, sellers, tenants. In addition, groups of market participants are allocated, in particular group 1 – professional participants working on a commercial basis; group 2 – analysts on the residential real estate market; group 3 – insurance companies, notary offices, law firms, mortgage banks, land resources fund, property rights registration bodies, real estate assessment agencies, technical inventory bodies, judicial bodies.