Recovery of the Real Estate Market in Ukraine

by Meifan Honcharuk
Tuesday, June 27, 2023
Recovery of the Real Estate Market in Ukraine

Ukrainians recovered from February 24 and started buying and renting housing again

With the beginning of a full-scale war, Ukrainians began to treat money differently: keep it to themselves, do not spend it, do not invest it. However, Ukrainians have now gotten used to the new, albeit terrible conditions and have resumed activity in the real estate market. The main reasons:

  1. Emotional and psychological factor. Ukrainians know that the war continues, but it will not last forever;
  2. The governmental program of profitable home lending eOselia. Thanks to the opportunity to take out a mortgage for the purchase of housing with a down payment of 20% of the total cost with an interest rate of 3%, Ukrainians were able to buy apartments for $50.000, having only $10.000;
  3. New sources of income. The state provides high payments to the families of Ukrainian soldiers who are in captivity or were killed in the war. Often these families invest in real estate;
  4. Internally displaced persons. People who leave the occupied or front-line zones to other regions of Ukraine need somewhere to live. And they are the largest group of home buyers and tenants;
  5. Changing Ukraine's reputation. Since the war began, many foreigners began to arrive in Ukraine. Here they had the opportunity to see for themselves that Ukraine is not a poor territory with lame architecture but a glorious and beautiful country. The purchase of real estate by foreigners changed the structure of this sector for the better and changed the mood of the market.

Today, a bare apartment on the outskirts of Kyiv can be bought for $30.000-$50.000, an apartment in a new building not in a prestigious area of the city — $100.000-$200.000, a high-class apartment in the centre of the capital — from $1 million.

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