bne IntelliNews – Residential real estate in Kiev explodes as high demand spikes prices


Demand for residential real estate in Kiev exceeds supply. As a result, Kiev is short of available apartments and prices are skyrocketing, following trends observed earlier this year.

Apartment prices in Kiev rose 23 percent last year, according to Lun.ua, an online marketplace for real estate. The average cost of a new apartment in Kiev was $ 922 per square meter in 2020; now it’s $ 1,131. They are expected to climb another 10-15% by the end of next year, experts say, due to banks granting more mortgages than ever to encourage buyers and planned property tax hikes. which will also drive up prices further.

Apartments in Kiev are small compared to more developed regions of the world, where the average available space per capita is around 30-40 square meters. In Germany, this number is closer to 45 square meters; in Ukraine it is 20 square meters per person, according to official statistics of the city of Kiev.

Kiev and Lviv lead Ukraine’s five largest cities for office costs, which are also on the rise. In the first half of this year, the purchase price of office buildings in Kiev increased 18.4% year-on-year, to $ 2,269 per square meter, more than double the national average of 8, 4%. Office rents rose 13.3% in Kiev to $ 18.7 per square meter, reports UBN.

Nationally, office rents have fallen by almost 1%, Volodomyr Shalaev, managing director of the Uvecon group, told Interfax-Ukraine. In Lviv, rents rose at the same rate as in Kiev, but office selling prices jumped 29% to $ 1,210 per square meter.

With the rise of e-commerce, warehouse prices have been particularly dynamic and have increased at double-digit rates in Lviv, Kiev and Dnipro. Warehouse selling prices increased 40% year-on-year in Lviv, 31% in Kiev and 27% in Dnipro.

Prices for new apartments have risen on average 16% in Ukraine since the start of last year, according to a study by OLX Real Estate. In Kiev, the country’s most expensive large market, the jump was 22%. In Kiev, the average prices for new apartments are $ 41,000 for the 1-bedroom, $ 59,000 for the 2-bedroom and $ 83,300 for the 3-bedroom. In Lviv, the second most expensive market, comparable prices are $ 32,000, $ 44,700 and $ 52,000.

Up to 32 new business centers will open in Kiev by the end of next year, Volodomyr Heliuta, managing partner of UTG Offices, told Interfax-Ukraine. The rental area amounts to 670,000 square meters, or nearly a third of the existing offices in Kiev. “The frozen and postponed projects have been actively relaunched since mid-2020,” he says. “Dilapidated shopping malls, resorts, businesses and factories are being turned into office buildings. IT is the main driver of the expansion, according to him and other commercial real estate analysts. .

New foreign investment in construction in Ukraine is expected to reach $ 2 billion by 2025, Valeriy Kodetsky, president of City One Development, told Interfax-Ukraine. “Powerful foreign investors” are interested in building new factories and production facilities, participating in large infrastructure projects and building commercial and residential real estate projects, Kodetsky said, summing up the conversations he has had last month in Monaco during the CC Forum Global Investment in Sustainable Development. .

About Elizabeth Smith

Check Also

Keller Williams releases YTD ’22 results

AUSTIN, Texas–(BUSINESS WIRE)–Keller Williams (KW), the world’s largest real estate franchise by number of agents, …