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Real estate in Ukraine

According to experts, Ukrainian real estate market has a trend of price reduction, in the future rise of prices is not expected. Construction and real estate development  are the most promising areas in 2015. Investing in real estate during a recession you recoup your investment over several years

Changes are coming on the secondary market. Firstly, the devaluation has given benefits to buyers, so sellers are willing to bargain. Sometimes price can changes 10% – 20%.

 Secondly, it finally decided the issue of real estate appraisal. This market will be much more transparent, and cost estimates will be significantly reduced, open access to information about the real cost of transactions. In addition, the simplified procedure for the commissioning of the property, declarative method of coordination of construction and reconstruction is set.

Rent now is the main “driver”. The settlers did their job, and the demand for rental housing, not only in Kiev but also in other major cities raised. In addition, there will be so-called share houses – fashion for rent one housing several families or friends.

Developers are looking at the market carefully and do not start to large-scale projects. In addition, the reorientation forces developers to the capital. For example, those who had built in the eastern region have to look closely to Kiev. In addition, planned expansion of the developers of the Western Ukraine. Appear entirely new companies, including – with the participation of non-residents.

Even in the first half of 2014, main aim for developers was to complete the object, and the objects of economy class often sold at cost. However, in the second half of the year, despite the war and the crisis, more and more buildings began to appear. For example, items such as “Brooklyn”, Hoffman House, “Quartet”, “Aristocrat” apartment house Elyseum (beginning with the construction of 10/01/14), club house “Montenegro”, “Stoletof.” In addition, apartments in Pechersk Hills residence and Renaissance Residence are started to sell.

In general, only in Kiev there are about 150 active construction sites now. Architecture and concepts are modern. Developers carefully studying the demands of customers and introduce it to the new complexes.

Among the new trend – the emergence of affordable real estate in the heart of the capital and other major cities. Square meter of housing can be found for 1 thousand US Dollars. Apartments become more popular. For example, in the second quarter of 2014 increased the demand for apartments ranging from 40 to 80 square meters. As for one-bedroom, which are usually bought for rental, so two and three, which are acquired “for themselves.” Moreover, investments in real estate have become more rational, and buyers are guided by the quality of the finished property.

Construction of commercial and business centers is a positive trend.

For the I-II quarters of 2014 the number of transactions fell from developers in business class and in the premium segment, although sales have not stopped completely. And in the last few weeks of August – early September again began to rise. At the same level apartments “economy” and “kofmort” remain the dominate place. The volume of transactions with them remains the same as last year, and in some periods (especially during the sharp devaluation of the hryvnia) – even higher.

Customarily, the greatest demand will be in real estate in the capital, where, especially in a crisis, potential buyers are flocking from the regions.

Also, there are expectations that will increase demand for primary real estate in small towns. After all, the cost of land and construction work there are lower than in the capital and major cities. This allows developers to build high-quality facilities at competitive prices. At the same time, the affinity of the metropolis and usually developed even in the “satellite” infrastructure, making them suitable for living.

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Please don’t hesitate to contact Sadko Consulting should you are interested in our services of market researches and reports in Ukraine.


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