Property prices increased by 40% in 2 years

by Meifan Honcharuk
Monday, December 6, 2021
Property prices increased by 40% in 2 years

Experts say where is the most expensive housing in Ukraine and what to expect in 2022

Where is the most expensive real estate in Ukraine?

The most expensive real estate is in Kyiv. On average, one square meter of Kyiv housing will cost almost $1427 thousand. Poltava, Odesa, Dnipro, Kharkiv and Lviv were also among the most expensive cities to buy real estate — $914-951 thousand per sq m.

The cheapest real estate in Kropyvnytskyi is a little more than $512 thousand. Almost $5 585 thousand per sq m. will have to be paid on average in Ivano-Frankivsk and Khmelnytsky, which are among the top three cheapest bridges in terms of real estate value.

Why are real estate prices going up?

In Ukraine, prices have grown by an average of 20% in the secondary housing market and by 20-30% in the primary.

If in large regional centers price have increased by 35%, in the secondary market — up to 20-25%, then in small towns over the past 2-3 months there has been a decrease by 3 4%.

Real estate experts identified the following factors behind the growth in prices in the housing market in 2021:

  • Inflation. The construction cost has increased due to high prices for construction products and construction and installation work;
  • High investment demand. To preserve their funds, Ukrainians are investing in real estate;
  • Increased demand. Between 2020 and 2021, it grew by 30-35% in the primary market and 25% in the secondary market;
  • The exit of big players from the market. Two developers have left over the past 2 years — Ukrstroy and Eureka, they brought down the market. There were fewer offers, but the demand remained - prices rose accordingly.

What to expect in 2022

Real estate experts agree that the first months of 2022 will be stable for the real estate market. However, in the spring, prices may start to grow. Thus, in the first half of the year, prices may add 5%.

In particular, the following factors will influence prices in 2022:

  • The level of demand for a particular object;
  • The economic situation (the level of inflation and its impact, above all, on the cost of construction, the hryvnia exchange rate, etc.);
  • Development of mortgages;
  • Pandemic.
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