Friday14 February 2025
podrobnosti.org.ua

Housing prices in Ukraine will soon be recalculated. Find out the expected cost of an apartment and what to anticipate in the market.

In 2025, the Ukrainian real estate market is expected to remain unstable; however, the demand for residential and commercial properties will continue to rise.
Цены на жилье в Украине скоро пересчитают: сколько будет стоить квартира и чего ожидать в будущем.

Housing prices may rise by up to 25%, and rental rates in Kyiv have already increased by 30-40% compared to last year. Reports OBOZ.UA. This information was shared by Kontrakty.UA.

Oлена Єльник, the founder and head of companies involved in project management in IT, real estate, and gambling, shared this in a comment to the media. Despite the challenging economic and security situation, in 2024, a total of 6.73 million m² of housing was commissioned – which is 23.5% more than in 2023.

However, compared to pre-war figures, the market is still significantly lagging, as in 2021, this number was nearly 9 million m². Ukrainians are hesitant to invest in housing due to the ongoing high military risks.

The demand in the primary market remains low, creating significant challenges for developers. Nevertheless, according to the expert, there are positive aspects: state credit programs, such as yeOselya, are facilitating the gradual recovery of the market. In 2024, more than 14.6 billion UAH in loans were issued thanks to this program, and the government plans to allocate another 20 billion UAH in 2025.

The highest demand for housing is observed in the western regions of Ukraine, which have become relatively safe havens for displaced persons. Consequently, 38.7% of new properties in 2024 were located in this region (compared to 34.5% in 2023 and 31.7% in 2021).

The capital traditionally sets the tone for the market, but the increase in real estate prices is uneven. For instance, Uzhhorod, which had relatively affordable housing before the war, now ranks third in price after Kyiv and Lviv. The average price of a one-bedroom apartment in Uzhhorod on the secondary market reaches $55,000.

At the same time, Єльник notes that the situation in frontline cities is quite different. The market here is virtually frozen – owners are unwilling to sell their properties for a pittance, and new construction is practically nonexistent.

The demand for rental housing remains high, especially in Kyiv, Lviv, and other major cities. By the end of 2024, the demand for rental apartments in the capital increased by 30-40% compared to 2023. The primary tenants are displaced persons, workers from other regions, and students.

The lower threshold for budget housing prices in Kyiv has risen from 6,000 to 8,000 UAH, and a further increase of up to 25% is anticipated in 2025. At the same time, tenants are paying more attention to the availability of autonomous heating and backup power due to the risks of electricity outages. It is expected that real estate prices in Ukraine will rise by approximately 25% due to factors such as inflation, currency fluctuations, mobilization, and shortages of building materials.

As reported by OBOZ.UA earlier, a new type of subsidy for rental housing for internally displaced persons (IDPs) became available in Ukraine starting January 29. Applications for the subsidy can be submitted, and the amount will be determined individually.