Changes in the rental and purchase market of real estate in Ukraine

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The real estate market in Ukraine came to a complete standstill in the first months of the full-scale invasion. Then he gradually began to recover, which continues to this day.

And although prices in the real estate rental sector have risen significantly compared to even the pre-war period, the real estate purchase market has still not recovered either in terms of demand or prices.

Of course, the situation varies greatly depending on the region. In the west, prices and demand are currently more or less stable, as in the capital. Changeable moods are observed in Odesa, Kharkiv and Dnipro due to shelling.

The real estate market in Kyiv is gradually recovering. The price for renting apartments in Kyiv in hryvnia has finally exceeded the pre-war price, that is, it has fully recovered.

So, for comparison, today the average median rent price for a one-room apartment is UAH 13,000, for a two-room apartment – UAH 16,000. Before the start of the full-scale war, these prices were 12,000 UAH and 16,000 UAH, respectively.

The highest demand and the highest prices for renting apartments still remain in Lviv. The average price of a one-room apartment is UAH 17,000, a two-room apartment is UAH 22,500. However, before the start of the full-scale invasion, these prices were UAH 11,000 and UAH 14,000, respectively.

That is, even if this price is converted into currency, it can be noted that the absolute price in Lviv has increased by 20-25%. According to the owner of the real estate portal Country.ua by Ruslan Salivonalso a sign of great demand is that the commission of realtors in Lviv is the largest in the country, they charge 100% of the monthly cost of renting an apartment.

For comparison, in Kyiv this commission is 50%.

The rental real estate market in the capital of Ukraine is gradually, but slowly, recovering. However, demand still remains low. According to the statistics of the Ministry of Justice, the number of real estate sales in 2022 compared to 2021 decreased by three times.

There are no data for 2023 yet, but the median real estate sale price in Kyiv is gradually increasing and currently the prices in currency are 90% of the prices of the pre-war period.

Namely, the average median sale price of one-room apartments in Kyiv today is $65,000, two-room apartments – $90,000. As of December 2021, with the market steadily rising, these prices were $70,000 and $100,000, respectively.

The median price is not equal to the selling price. According to professional market participants, today, in conditions of reduced demand, apartments are sold at a discount of 10-20% from the median price.

In Lviv today, the average price of a one-room apartment on the secondary market is $56,000, a two-room apartment – $87,000, and a three-room apartment – $117,000.

The recovery of economic activity in Ukraine, the return of migrants, and the cessation of hostilities may contribute to further price growth.

But, as Ruslan points out, there is still no reason for the sale price of real estate to exceed the pre-war price, even in the conditions of the end of the war.

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