Ukrainian Real Estate Market: Tendencies and Prospects

Abstract

The article is aimed at researching tendencies and prospects of Ukrainian real estate market in different segments. The tendencies of development of construction market of Ukraine are positive: volumes of both construction and price are increasing every year. At the same time, the situation in Ukrainian real estate market is unstable. Due to the large number of new buildings in Kyiv, Lviv, Odessa and other major cities of Ukraine, the offer exceeds the demand. In 2018, a number of laws were enacted to bring the real estate market out of the shadow. Obviously, there will be a seasonal decline in the prices of rental property in winter. However, in the real estate purchase and sale market, prices in Hryvnya are likely to remain stable. The prices in foreign currency can decrease up to 5% at possible growth of rates of foreign currencies. In case of escalation of military threat, demand for economy-class apartments in new buildings of the Western and Central regions will increase, which may cause price growth. The «expensive segment» in the primary market will not change. In the secondary market the situation is similar – demand can grow in the case of internal migration. In the segment of commercial real estate a significant increase in demand is possible. At the moment the Verkhovna Rada of Ukraine is considering a number of bills that may cause a boom in the commercial real estate market. One can conclude that the real estate market of Ukraine at the present moment is attractive for investment.

Keywords

• real estate
• construction
• real estate market
• primary market
• secondary market
• rent