The war broke the trend: what will happen to real estate prices in Ukraine in the near future

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The war broke the trend: what will happen to real estate prices in Ukraine in the near future

Prices for apartments will change unevenly throughout the country/Unsplash

The war changed the trend towards a significant increase in the cost of real estate in Ukraine, which was observed during 2021. However, housing prices have not yet fallen too much.

Experts told the Channel 24 website that the fall in property prices will soon be more noticeable. But you should definitely not expect that it will be uniform throughout the country.

Everything depends on security in the regions

As the financial and economic observer Bogdan Slutsky noted, the demand for buying a home will depend on the situation in Ukraine. Indeed, in different areas, the degree of threat is different, so both demand and supply will be different.

For example, now the most interesting for buyers is housing in the western regions of Ukraine. Accordingly, the prices there have increased by at least 20-30% (for rent – in some cases even at times) compared to the cost before the full-scale invasion of the aggressor. If we are talking about such cities as Dnipro or Odessa, then the demand is smaller, so the prices for rent or sale will not grow in the near future. In some cases, there will even be a trend towards a decrease in the cost of about 10-20%, says Slutsky.

The expert explained that now the war has broken the trend towards a significant increase in real estate prices, which was observed during 2021. Currently, small renovated apartments that are immediately suitable for living are in demand.

Renting has become even more popular

On the portal OLX Real Estatesaid that due to hostilities and forced relocation to relatively safe regions, Ukrainians are 1.5 times more likely to look for rented housing. If a day before the start of the war, 1.6 million searches were made on the resource for rent, now this number has grown to 2.7 million searches.

The war broke the trend: what will happen to real estate prices in Ukraine in the near future

Housing prices are rising in Western Ukraine/Photo by Unsplash

Among the number of free apartments for rent, Kyiv region is confidently leading. Compared to peacetime, the number of premises in the region has almost doubled. If before February 23 it was possible to choose more than 20 thousand houses, then in May there are already more than 40 thousand. At the same time, the average rental price in May, on the contrary, decreased by almost 22% and is less than 9 thousand hryvnias per month, experts noted.

Yes, now you can quickly find free square meters in the Dnipropetrovsk region. Since the beginning of the war, the number of apartments for rent in the region has grown by almost 11%, which is noticeable by the number of ads on OLX. However, the price has risen slightly. For rented housing you have to pay an average of more than 7 thousand hryvnia. Approximately the same average monthly rent is requested in the Ivano-Frankivsk and Poltava regions, but in the Cherkasy region, the price of living per month will cost a little more than 6 thousand hryvnia,

Analysts added that in the western regions, given the growth in demand, prices are vice versa grew up. Therefore, in Ivano-Frankivsk, a monthly rent for a one-room apartment in May costs UAH 8,776, a two-room apartment costs UAH 11,702, and a three-room apartment costs UAH 17,553. 6,000 hryvnia per month, two-room apartment – 8,000 hryvnia, and for three-room housing, you will have to pay an average of 12,000 hryvnia per month.

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