Real estate market: prices and demand

Autumn has always been marked by liveliness in the real estate market. People return from vacations, the school year begins, and business activities increase. Typically, the rental housing market experiences the most activity, especially in the capital city. For the autumn season of 2023, market participants made various forecasts, presenting arguments for their positions. Those who predicted price decreases cited low demand, slow economic recovery, and an uncertain situation. Meanwhile, those who believed in rising rental prices pointed to previous seasons when rental housing prices, especially in the capital, always increased.

Rental Apartment Prices

In reality, when analyzing the current situation and studying price statistics on popular real estate portals, it appears that apartment rentals in Kyiv have slightly increased. For example, the median price for popular one-bedroom apartments, which was 9,000-10,000 UAH at the beginning of the summer, has now risen to 10,000-11,000 UAH. In Lviv, the average price has decreased slightly compared to the prices a year ago, but paradoxically, it remains higher than the average price in Kyiv. A one-bedroom apartment in Lviv costs an average of 15,000 UAH.

Secondary Market, Sales

Regarding prices for the sale of apartments on the secondary market, experts point out the existence of "two prices." One is the price listed in advertisements, and the other is the actual price at which sales occur. In some cases, the actual price may be one-third lower than the listed price. For example, if a 1-bedroom apartment is listed for $60,000, the actual sale price may be around $41,000.

What's Happening in the New Construction Market?

Currently, there are approximately 1,300 residential complexes being constructed in the country. On average, they have reported resuming construction for 75% of these projects. However, the situation varies by region. For example, in Lviv, more than 90% of new construction projects have resumed, while in Kyiv, just over 60% have resumed. Prices in Kyiv have remained largely unchanged, while in western regions, they have increased somewhat.

What About Demand?

When comparing the current market to 2021, demand is currently about half of what it was then. Market participants claim that there is currently no demand for so-called "investment apartments," which are properties purchased for investment, preservation, and capital growth. At present, most people are buying housing for their own occupancy.