The real estate market in Ukraine is beginning to revive: experts are recording more and more transactions, the cost per square meter in new apartment buildings is going up, and construction in some regions is in full swing. Nina Tarasenko, a broker consultant and member of the ARESU (Association of Real Estate Specialists of Ukraine) says that the demand for apartments in quiet areas is increasing, and prices for real estate will rise in the future. All the latest information about the state of the Ukrainian real estate market. Stay up to date here.

«People buy apartments in Lviv and Kyiv, but it’s still a very risky business»

In an interview with REALTING, an experienced broker consultant and member of the ARESU (Association of Real Estate Specialists of Ukraine) Nina Tarasenko shares her opinion: despite the high risk, real estate remains one of the leading investment tools in Ukraine not only to keep your savings but also to multiply them in the future. 

— How are things in the Ukrainian real estate market? Tell us more about apartment prices.

— Speaking of the real estate market, it is worth separating newly built and previously owned housing, as well as the rental and sale market. 

Today, the demand for rental housing in relatively peaceful regions of Ukraine has increased. Prices have returned to the pre-war level and even increased in the Ukrainian hryvnia equivalent. First of all, it is the result of the internal migration within the country because of the war. The highest demand is for large cities with good infrastructure and opportunities to find a job, organize education for children and settle down.
As for real estate purchases, there is also a certain revival here. Although most buyers look for furnished apartments in low- and middle-priced segments with all the renovations done. It is harder for buildings under construction: the prices for building materials are going higher, complicated logistics, search and substitution of Russian and Belarusian-made materials, the presence of imported components and the deflation of the national currency contribute to an increase in the cost and timing of construction. Despite these factors, many construction sites have restored their work and offer the buyer a variety of loyalty programs — for example, instalment payments up to 7 years, rate fixing, discounts, and even rent compensation until the house is commissioned. 

At the moment, the average price per square meter of new low-priced apartment buildings in Kyiv is about $800, the middle-priced segment — is $1000, the high-priced segment- is $1500, premium segment — is $2500+. At the same time, you can see very low prices on the market: the cheapest new apartment in the Solomenskiy region will cost the buyer $10,000, but you should be careful: most likely, this is a price not for a small studio with the total area of 19.8 sq.m., but for the lack of permission documents. After all, other options in the same area are 2.5 times more expensive. I want to emphasize that buyers and tenants should be as vigilant as possible now more than ever so as not to fall into the hands of scammers. 

— Has the demand and the pen portrait of the buyer changed recently? Simply put, who is buying apartments in Ukraine today?

— Now buyers can be divided into two categories (according to their motivation for buying). The first category is people who need a home. 

Such buyers, as a rule, are interested in previously owned apartments that are fully furnished, so they can move in and start living there right away. Many people’s homes have been destroyed and now they are forced to look for a roof over their heads. 

The second category of buyers is people who want to keep their savings. And here they have little choice: to put money on deposit at an interest rate that does not cover inflation, or put their money into square meters. In my opinion, the solution is obvious — square meters are growing in cost and demand (as opposed to the hryvnia, which is depreciating). But it’s important to choose the right option. If this is a construction apartment building, you should pay attention to the stage of construction, the reputation of the developer, the location and characteristics of the object. There are a lot of different promotions and offers from real estate developers now. That is why a new building in a good neighborhood of Kyiv in a few years may not just pay off, but also bring significant income.

However, let’s not forget about the high risk of such investments: there is still fighting in the country, and property can be destroyed at any time.

«It makes sense to think about investing in new high-quality housing in Ukraine»

— How has the rental real estate market changed?

— The rental real estate market has already reached the price level of the beginning of the year and continues to grow. Because of the internal migration, apartments in quiet regions are rented out very quickly. Small apartments in the center used to be in high demand, but now there is a growing need for bigger ones in order to accommodate several generations of one family at a time. Therefore, two-bedroom and three-bedroom apartments are now in the greatest demand, so families and their close relatives all can live in the same place. 

According to the prices for renting apartments in Kyiv: rent of a one-bedroom apartment starts from $220, a two-bedroom apartment — from $300, three-bedroom — from $400. Housing in the city center in modern buildings will cost $550 per month or more.

— How has the work of realtors changed? Maybe there are some unusual additional tasks that real estate market specialists now have to perform?

— In fact, the work of realtors has remained almost the same: the set of basic processes remains the same, and it is hard to change anything here. However, the number of requests for rental housing has grown significantly, and most realtors have begun to specialize only in this segment. What has changed, realtors now have to help apartment owners to rent their property remotely. Therefore, our specialists sometimes have to hire cleaning services, to maintain apartment’s decent condition and even do a little home improvement. It’s a kind of all-inclusive package of services.

On the other hand, clients’ behavior has changed. Now they take their time to make a decision to buy real estate or not: before that, it took them about two weeks, but now the time has increased to several months. And here the broker will have to spend much more time searching for the «right one» option for their clients.

— Is it possible to make any predictions about prices on the market now?

— No matter what, my forecast will be optimistic. Yes, we live in a difficult time with high risks, but eventually it will end. People adjust to existing conditions and continue to live their lives. We see a high need for housing, which is now being transformed into existing demand. In addition, the cost of construction is rising all over the world.

The city is reviving: well-known retail and restaurant chains are back in business, and some schools have returned to the regular program since September 1. So the cost of apartments in quiet regions will grow and the real estate market sooner or later will not only return to pre-war levels but even exceed them. And that means it makes sense to think about investing in new quality housing in Ukraine.

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