what happens to the real estate market during wartime
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The market really collapsed in 2022, it lost 85 to 90% in the number of apartments sold, depending on the region. From the end of summer to the beginning of autumn last year, the market gradually began to grow.
“To the extent that builders and developers have resumed work on construction sites, given the dynamics they are showing, some demand is increasing. However, now we are not even reaching 30 or 40% of the pre-war volume of apartments sold or investment attraction figures.” – says Pylypenko.
If we compare the current indicators with the indicators in 2021, then on average the market in Kyiv is now at the level of 30%.
The situation varies greatly depending on the company, because everything depends on the degree of readiness of a specific object, the reputation of the developer, and the dynamics on the construction site.
“If the company builds even though some processes are delayed and deadlines are extended, it has the opportunity to receive funds for deferment from those who pay according to the schedule, as well as to attract new investors,” the general director of “Kovalska” stressed.
According to him, the main characteristic of the market during a full-scale war is almost no investment sales. Investments coming into the primary real estate market are the final consumer.
“On the market of investment apartments for 2021, the share of apartments that were bought for future resale or for rent reached 40%. Now they are almost zero. These are practically single cases when we observe investments in order to later resell housing,” – Pylypenko emphasized.
In fact, when people buy apartments, invest in real estate, it is evidence that they are building their plans for the future in Ukraine, in a specific city, and are striving to improve their conditions.
“I am convinced that these are people’s savings or income that they want to invest in real estate in order to protect funds from inflation. Our people have a certain pattern of behavior that the family should have several apartments, that each family member upon reaching a certain age, he must get his own home. In general, investing in real estate is a fairly traditional way of preserving one’s wealth and savings for a Ukrainian family,” the company’s general director noted.
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