The situation on the real estate market in Ukraine: what do Ukrainians choose?

The real estate market in Ukraine continues to recover from stagnation due to Russia's large-scale invasion. The full-scale war and the deliberate destruction of Ukraine's energy infrastructure by the Russians have made adjustments to the demand for housing, UNN reports .

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Over the past few years, Ukraine's real estate market has gone through a series of transformations. After a period of steady price growth until 2022, the war made its own adjustments, halting construction and freezing buyer activity at the beginning of the large-scale invasion. However, the market is gradually starting to recover.

Currently, real estate experts say that the demand for housing in Ukraine is growing. This is due to the large number of IDPs who choose safer regions to live in, as well as the stabilization of the economic situation in the country and the desire of citizens to invest in more or less safe assets.

Despite the war, real estate prices in major cities such as Kyiv and Lviv remain relatively stable. Demand for small apartments continues to grow due to IDPs and returning residents,

However, Ukrainians' tastes in real estate have been forced to change. Nowadays, there is a greater demand for ready-to-move-in housing on the secondary market, which can be moved into immediately after purchase. Ukrainians are more likely to choose small one- or two-bedroom apartments, and the most important requirement is the lower floors.

Today, apartments up to the 9th floor, not higher, are in greater demand. This is due to the war and power outages. If it is still possible to go up to the 9th floor, then 20 or 25 floors are already problematic

Buyers also pay attention to the neighborhood in which they are going to buy a home, its infrastructure and autonomy. The war has also made suburban housing more popular.At the same time, experts note that prices in the real estate market have not changed much and remain at pre-war levels.

Prices are the same as they were before the war. There are developers who raised prices by 10-15%, they motivate it with the cost of gasoline and electricity. Plus, the pace of construction has slowed down for many, plus... there were 20 active developers in Kyiv, now there are only a few left,

For example, according to ads posted on one of the popular real estate websites, a small one-room "Khrushchev" apartment with old renovations in Kyiv can be purchased for as little as $23,000. A one-bedroom apartment in a 1962 building will cost from $30 thousand, depending on the district of the capital and the condition of the property.

Experts point out that because of the war, Ukrainians have begun to buy housing more often in the cities of Western Ukraine. For example, in Lviv, apartments on the secondary market are about $5,000 cheaper than those in the capital, meaning that a one-bedroom apartment can be purchased for $15,000. At the same time, in Uzhhorod, you will have to buy housing at Kyiv prices. The cost of a one-bedroom apartment here starts at $22,500.

Despite the fact that there are such low price offers on the market, according to the website Lun.ua, the average cost of a 1-room apartment in Kyiv in July this year was 50-60 thousand dollars. At the same time, "Khrushchev" and "panel" apartments cost from 41 thousand dollars.

At the same time, the situation on the new construction market is much worse. According to experts, Ukrainians are ready to invest in already built housing, but refuse to invest in new buildings at the foundation stage.

The primary market - people are interested in a house that has been delivered or is almost delivered, or is about to be delivered, and the price should be low, because they go without repair, they do not want to deal with repairs...,

Despite the difficulties with sales, housing prices in new buildings also remain at pre-war levels, and in some cases have even increased slightly. In particular, the cost per square meter in an economy class new building in the capital in July was $960, while a square meter in a comfort class apartment will cost an average of $1,030.

Financiers advise not to reject the possibility of investing savings in such housing, because after the war is over, prices for it may skyrocket.

According to Olena Sosiedka, co-founder of Ukraine's first fintech ecosystem Concord Fintech Solutions, the question of whether to invest in real estate or rent housing in Ukraine depends on the risk tolerance, financial capabilities, and long-term goals of everyone who faces this choice.

If you are willing to take high risks and see the potential for long-term gains, the investment may be worthwhile. However, for a more conservative approach, renting a home will give you more flexibility and reduce financial risks. It is important to carefully weigh the pros and cons and consult with experts before making a decision,

In the context of the real estate market, one cannot but mention rental housing, which has taken on a new meaning during the full-scale invasion. According to Sosedka, the ongoing hostilities in Ukraine, including regular rocket attacks on Ukrainian cities, keep the risk of property loss at a high level. And despite the improvement of air defense systems, no one can guarantee the complete safety of buildings.

According to Sosedka, this led to the fact that renting a home during a military conflict provides the necessary flexibility and mobility.

"Renting a home allows you to quickly change your place of residence in case the situation worsens, which is important in times of instability," the expert said.

In addition, the lease helps to avoid significant financial losses in the event of property destruction.

"You will not be responsible for the restoration or compensation of damages related to the destruction of real estate," Sosedka said.

Another advantage of rented housing is psychological comfort. "Living in rented housing can be psychologically easier knowing that you can easily move if necessary," she explained.

Recall

Sosiedka told us where it is better to buy apartments abroad and what to look for when buying. She noted that investing in foreign real estate can provide asset diversification, price appreciation potential, and the possibility of obtaining a residence permit or citizenship.