The intricacies of the real estate market: how Ukrainians rent and buy housing in times of war
12 February 17:46
ANALYSIS FROM 
The real estate market in Ukraine is coming back to life after a doldrums. Last year, 452 thousand real estate purchase and sale agreements were concluded, which is 12% more than in 2023, but 28% less than before the full-scale invasion. Of the total number of transactions, 178 thousand were for the purchase of apartments and houses. Ukrainians bought less real estate, with 178 thousand transactions in total, according to Opendatabot. What is happening in the real estate market, analyzed
Taboo on animals and small children
Statistics show that last year the number of house and apartment sales transactions increased by only 3%, and the rate of apartment and house sales remains 1.8 times lower than before the full-scale invasion. And the situation with renting is even more interesting, as demand exceeds supply, as described by
“In general, the number of transactions has increased over the past year. Since the end of January, there has been a shortage of offers for rent, and today apartments are rented literally after the first viewing, and this is despite a 10-15% increase in rental prices. Renovated apartments are in great demand, but they are also more expensive, as apartments that have been rented repeatedly fall in price, but such apartments can be rented by people with animals and small children. Because they categorically do not want to rent freshly renovated apartments to tenants with pets and children under 6, even if they pay a double deposit,” says Vladyslav Kulishenko.
Surprisingly, IDPs are less interested in renting in Kyiv or western Ukraine, and those who are forced to leave the frontline areas are trying to rent in neighboring regions. There are many IDPs in Dnipro, Kharkiv, Zaporizhzhia, and even Sumy, despite the fact that the city is constantly under fire, people from towns and villages close to the frontline are trying to settle there, and the number of military tenants has increased. In Sumy, it is already difficult to find housing for rent, and there are few offers. In Dnipro, Kharkiv, and Zaporizhzhia, you can find options for every budget, with the average cost of renting a 1-room apartment in Kharkiv and Zaporizhzhia at UAH 4-5 thousand, but Dnipro is a surprise, with an average rental price of UAH 10 thousand. In Kyiv, however, the majority of tenants are labor migrants from other regions.
“Unfortunately, rents are rising. Moreover, landlords raise the price every six months. It used to be possible to rent an apartment and live in it for years without price changes, but today this does not work. This example was set by residents of the western regions when, at the beginning of the war, they raised the cost of rent by almost 200% and kept raising it. Even today in the capital you cannot find cheap apartments for 5-6 thousand UAH, if something appears, it starts at 8 thousand, but the condition of the housing is deplorable. And on average, renting a 1-room apartment costs UAH 12 thousand,” says Vladyslav Kulishenko.
People choose small and inexpensive apartments
The sale price of apartments and the number of transactions are also growing. For example, since the real estate registry stopped working and was hacked in December, transactions have been frozen. But as soon as it started working, the market revived and there were more offers.
“One-room and two-room apartments in the secondary market costing up to $1,000 per square meter are the most popular. The primary market is not moving, despite the fact that the difference between buying used housing and new housing is small, but buying housing on the secondary market, you can live in it. There are no small apartments left, and there are large three-room apartments for sale that are not in demand. As always, the priority is low-rise, gasified, and lower floors. And apartments in the Khrushchevs are simply flying away. In addition, buyers have begun to pay more attention to various household items, from whether the elevator works during a power outage, to the smooth operation of water pumps, and even to utility rates. The latter point is particularly studied, because it is one thing to buy a home, and another to pay for it,” says Vladyslav Kulishenko.
By the way, according to real estate market experts, housing sales in western Ukraine have fallen due to inflated prices. For example, a one-room apartment in Kyiv costs an average of $60,000, depending on the neighborhood, as in Desnianskyi you can find an apartment for $42,000 and in Pecherskyi for $114,000, while in Lviv the average cost is $64,000, with a minimum of $66,000.
The main buyers of housing are women
And, as Vladyslav Kulishenko noted, today the main buyers and owners of housing are women. Men of mobilization age who own real estate are trying to re-register it to women or pensioners, or sell it.
“The real estate market is currently experiencing price uncertainty. In the short term, there will be a shortage of affordable housing on the secondary market. People are not buying expensive apartments – those who can afford it have either left or are waiting for the end of martial law. Investments in real estate have become less attractive; on the contrary, some people are getting rid of assets in the form of square meters, preferring cash. New housing will not be considered as a purchase in the near future due to the high cost of building materials and high repair costs. In general, housing prices, both for rent and purchase, will continue to grow, and there are no reasons for a drop,” emphasizes Vladyslav Kulishenko.
Despite the fact that the real estate market is not in the best shape today, Ukrainians are taking out mortgages more often – the number of such transactions increased by 14% over the year. This is almost 13 thousand properties. The recovery in demand for installment loans was mainly driven by the government’s eHouse program: 70% or 8.5 thousand housing mortgages were issued through eHouse last year.
Author – Alla Dunina
