The primary real estate market is recovering after nearly a complete standstill in 2022. Among Ukrainian cities, which ones have the highest-priced apartments?
The primary real estate market in Kyiv has seen a surge in demand during the first half of 2023: the volume of inquiries to sales departments and completed transactions is rising, as indicated by Kyiv based development company KAN Development. People were purchasing properties slightly above their means before the full-scale war started - larger spaces, higher-end residential complexes, or those in better locations, adds the developer. Nowadays, the trend leans towards properties that address immediate needs and financial feasibility, with a focus on present-day requirements and well-established infrastructure.
"There's a growing demand for apartments with more modest living spaces,” explains KAN Development.
“Luxurious features are losing popularity; everyone awaits economic recovery.”
Just like in the secondary market, the priciest apartments in new developments are found in Kyiv. The cost of housing in buildings that will be completed by the end of 2023 is $1,293 per square meter, followed by Lviv at $1,250 per square meter.
Roman Davymuka, Executive Director at Lviv's Avalon development company, notes a surge that has been observed since the spring of 2023. People are now purchasing completed or almost finished homes.
"Our company is witnessing strong demand for apartments on ‘foundation’ construction stage, yet we remain uncertain if this trend extends to all developers,” he said.
Davymuka also highlights the return of investors to Lviv's real estate market. While quick resale is of less interest to buyers now, they are investing with the goal of capitalization and future passive income. The perception of Lviv has shifted, with a heightened sense of security and a stronger connection, he said.
Securing the top three in the price ranking is Uzhhorod, where new development apartments are being offered at $1,200 per square meter. Uzhhorod's popularity stems from its location on the Slovak border. It has transformed into a distinct "secondary hub" for residents of Kyiv and eastern Ukraine, according to local realtor Anna Chavarga. The majority of her clients come from Odesa, Kharkiv, Dnipro, and Kyiv.
"Retirees have sold their properties in the capital, invested in Uzhhorod, and settled here," she reveals.
"On the other hand, young people prefer to reside in Kyiv. They will turn to us in the event of worsening circumstances, and once victory is achieved, they intend to lease out their apartments."
Chavarga admits that potential buyers are surprised by the high local housing prices. She provides the case of Kyiv residents who possessed $40,000 and aimed to purchase a spacious three-bedroom apartment. However, such a unit now costs $60,000 to $70,000 in Uzhhorod. The funds were merely sufficient for a modest two-bedroom unit in the residential outskirts of the city.
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