Apartment rental prices in Kyiv exceed pre-war levels: what to expect next
Kyiv • UNN
Rental prices for one-bedroom apartments in Kyiv are again higher than pre-war levels. Experts predict price stability until May, with further dynamics depending on the war.
Currently, the cost of a one-room apartment in the capital has outpaced the pre-war price of housing. On average, a 1-room apartment in a new building in April can be rented for 17,000 UAH, and in an old building - for about 13,000 UAH. In the near future, rental prices are unlikely to change towards appreciation or depreciation. This was stated in a comment to UNN by Larysa Stavynoha, President of the Union of Real Estate Specialists of Ukraine.
How the cost of housing in the capital has changed over the past year
The expert noted that apartment rental prices have remained almost unchanged over the past year.
Approximately since May 2024, there has been a certain plateau in the housing rental market. In January-February, there was a certain decrease in price due to the fact that this time of year is characterized by a similar trend. However, these are seasonal price fluctuations that do not reflect the real situation on the market
The expert explained that the decrease in apartment prices in winter occurs every year for decades. It is due to the fact that most people are reluctant to change their place of residence during the New Year holidays and immediately after them, so the demand in the rental market predictably decreases. At the end of February, people return to work or from vacation and new properties enter the market at new prices.
The cost of renting a one-room, two-room and three-room apartment in Kyiv
The biggest fluctuations are observed in the cost of renting 1-room and 2-room apartments, because they are in the greatest demand among young people who have not yet acquired their own housing.
The price of a one-room apartment in a new building can be about 17 thousand UAH, in a Khrushchev building - 10-13 thousand UAH. These are average values, they may differ slightly, be cheaper or more expensive. But the cost of 3-room apartments is about 40 thousand UAH in a new building and does not change significantly. After all, the demand for such large apartments is significantly lower
According to Larysa Mykhailivna, the cheapest apartments are currently offered in residential areas (Lisova, Voskresenka, Borshchahivka, etc.), and the most expensive ones are in the center and on Pechersk.
Apartments in new residential complexes with their own infrastructure and territory are not inferior in cost to apartments on Pechersk, regardless of where they are located
Does the exchange rate affect the cost of renting housing in Ukraine
The housing rental market has almost completely switched to the hryvnia. This trend appeared after the start of the full-scale war. This is due to the greater transparency of the lease agreement and the ability to fix the cost of housing in it
Tenants must take on a certain responsibility by fixing the cost in hryvnia and concluding a longer-term lease agreement, but they are also more interested in this, which will allow them to have stable tenants. After all, the competition in the rental market among landlords is very high, she added.
Among those who rent out apartments now, there are many who have gone abroad, the expert emphasized. It would be reasonable to assume that these people are not interested in permanently searching for new tenants
Have housing programs affected the apartment rental market in Ukraine?
In fact, very few Ukrainians can afford to buy a home, even under the programs offered by the state. After all, the mortgage rate is very high, and the monthly payment should be at least 40% of a person's salary. That is, if your monthly payment is 40 thousand UAH, you must officially earn 100 thousand UAH. And only top managers or soldiers at zero have such salaries
Regarding programs such as "eOselia", the expert noted that although the rate on them is much lower, the conditions introduced by the state for obtaining housing under it cut off part of the citizens. For example, under this program, you can only buy housing in a building that is no more than 3 years old, and these are new buildings. Some of them may even still be under construction.
"Usually, people with children think about buying housing under "eOselia". And given these restrictions, they can count on housing that, for example, is still being built and it is not known whether it will be completed. And you have to pay now, while the family needs to live somewhere during this time. And then do the repairs," she explained.
At the same time, Larysa Mykhailivna emphasized that the cost of buying housing in new buildings has increased. This increase was caused by several factors at once: rising prices for building materials, taxes, inflation and the lack of builders due to the war, a significant part of whom are in the service.
Programs to provide rented housing
In October, the Ministry of Social Policy started working on a program that aims to help IDPs provide themselves with a place to live. With the help of subsidies from Denmark, the state offers IDPs who have this status since 2024 to receive compensation for renting an apartment, covering up to 95% of the costs. Landlords are also encouraged to participate in the program by the fact that the state will pay rent taxes for them instead.
There are two conditions for participation in the program: to have IDP status since 2014 and to be officially employed. In February, an experimental project to provide subsidies for housing rent has already started, - the expert noted.
How will the cost of rent change in the next 6 months
The war and shelling currently have the greatest impact on the cost of rent in Ukraine. As soon as the number and intensity of shelling in a region increases, the price of rent there begins to fall. After all, people are trying to leave dangerous regions. When the shelling subsides, people return, accordingly, demand increases
She also explained that there is currently a plateau in the rental market and predicted that it will last at least until May. Further, everything will depend on the situation in Ukraine as a whole and the course of hostilities.
"Usually May and June are not active months in the rental market. After all, people have everyday worries: May holidays, work in the gardens, graduations and entrance companies to universities for children. At this time, the demand for housing is minimal," she added.
According to her, the situation usually changes in July-August, when people return from vacation and return to solving urgent problems, including housing. Students start looking for housing near universities.
"However, even this period turned out to be inactive for the rental market last year. In particular, due to the fact that there were significantly fewer students, most of them, especially boys, went abroad," the expert explained.
Earlier UNN wrote that the rental market "froze" until spring, but remained active in three cities: Dnipro, Poltava and Kropyvnytskyi.
