Although the market is gradually recovering, the preference for land highlights changing priorities and perceptions of stability.
1. A Shift Toward Land
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Growing Demand
- In 2024, Ukrainians purchased land plots 1.5 times more often than housing.
- The Ministry of Justice reports 452,217 real estate purchase and sale agreements for 2024—12% more than 2023 but still 28% below pre-war levels (2021).
- Of these deals, 60% (273,000) were land sales, significantly exceeding housing agreements (178,000). -
Upward Trend
- The volume of land transactions rose by 18% over the past year (although it hasn’t returned to the 2021 high of 306,000 deals).
- This momentum suggests that Ukrainians continue to view land as a more secure long-term asset.
2. Housing: Slow Recovery
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Lower Demand
- Purchases of apartments and houses grew by just 3% year-over-year, remaining 1.8 times lower than 2021 levels.
- Buyers remain cautious in light of ongoing security concerns and potential financial liabilities. -
Mortgage Uptick
- Despite tepid overall interest, mortgage transactions increased by 14%, totaling almost 13,000 in 2024.
- The government’s “eOselya” program had a major influence, accounting for 70% of these mortgages (8.5 thousand deals).
3. Why Land Appeals to Ukrainians
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Relative Safety of Investment
- In times of uncertainty, land is perceived as less risky than residential property, particularly in areas affected by shelling.
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Future Construction Prospects
- Some buyers plan to build homes in safer regions or use land for business development.
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Lower Financial Burden
- Cheaper land prices (compared to apartments) often mean fewer loans or financial liabilities.
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Agricultural Opportunities
- For entrepreneurs, farmland can be a profitable venture, whether for farming or commercial building.
4. Market Myths and Misconceptions
- Land Ownership vs. House Ownership
- Some believe that building a home automatically grants ownership of the plot, which is not always accurate. - Wartime Registration
- Real estate registration does continue under certain procedures during wartime, countering the myth that it’s impossible.
5. Land Prices in 2025
- Regional Variances
- Ivano-Frankivsk, Lviv, and Ternopil regions report the highest land prices due to strong demand and favorable soil quality.
- Mykolaiv, Donetsk, and Luhansk regions have the lowest land prices, influenced by conflict proximity and diminished market activity.
Bottom Line
Ukraine’s real estate market is steadily recovering, but land has taken center stage due to its relative safety, economic potential, and flexibility in uncertain times. While mortgage lending and government programs like “eOselya” offer opportunities for housing, many Ukrainians still prefer the stability and long-term value they see in land.
