«If people buy — they believe in the best.» Activity, prices, and prospects of the Ukrainian real estate market
Over the past six months, housing prices in Ukraine : in the secondary market by 8%, in the primary market — by 11%. For example, in January the average cost per square meter in the secondary market was 17643 UAH and in July it was already 19070 UAH/m².
The new buildings segment, in general, is recovering. Since February 24, 39 new objects were commissioned. And in Kiev, for example, over the past 2.5 months, about 40% of developers have returned to work.
The real estate market in Ukraine has revived in . Especially it concerns the quieter regions of the country — the record for the commissioning of housing in the Kiev and Lviv region. During the war, 385 thousand square meters of housing was put into operation throughout the country.
About the market activity and the current portrait of the buyer told Yuri Pita, the current president of the Association of Real Estate Experts of Ukraine:
— can be conditionally divided into three zones: east, center and west. It should be noted that the purchase and sale market began to work in the middle of May, when the state registers began to work. In the east, where active fighting is taking place, the real estate market is not active.
There are a few deals, as a rule, these are transactions that were planned before the war. The drop in prices is observed at 40-50% of pre-war prices. In the central area, which includes Kiev, the market is more active, although activity has also declined. The fall in real estate prices has not been felt yet, sellers are not ready to lower prices, but demand has decreased. The prices are expected to drop by 20% in the near future. The Western Zone is the most active, primarily due to internally displaced people. The demand is there, though there is also a decrease of the cost, the buyers still do not have a great resource. The greatest demand is in Zakarpattya, Ivano-Frankivsk, Lviv.
Construction of new buildings has resumed in the central and western zone. Mostly completed objects that are in the final stage of construction. State programs for the purchase of new housing to compensate owners who have lost their homes due to military action are awaited. This should support the building industry.
Now the main portrait of the buyer is the consumer, that is, those who buy for themselves. The buyer-investor is still waiting, watching the situation and studying prices. Given that rents are active in the western zone and their prices have gone up, an investment in real estate may be interesting precisely for rent. The outlook in general will depend on the military situation: if people buy, it means they believe in the best.
By the way, professional networking in Ukraine is not going to slow down either. The other day, on July 15-16, the International Forum on Rebuilding Ukraine was held in Lviv. Architects, designers, builders, and business owners for 2 days discussed how the construction business should survive and develop during the war, analyzed the current situation and addressed the cases of the latest construction technologies for their implementation in the future. The event was both offline and online.