bne IntelliNews – Residential real estate in Kiev is booming as high demand drives up prices



The demand for residential real estate in Kiev exceeds the supply. As a result, there are not enough free apartments in Kiev, and prices are rising, the following trends observed earlier this year.

According to the Internet site, prices for apartments in Kiev have increased by 23% over the past year. The average cost of a new apartment in Kiev in 2020 was $ 922 per square meter; now it’s $ 1131. According to experts, by the end of next year they will grow by another 10-15% due to the fact that banks are issuing more mortgages to encourage buyers than ever before and the planned increase in property taxes, which will also lead to further growth. prices.

Apartments in Kiev are small compared to more developed parts of the world, where the average available apartment area per inhabitant is 30 to 40 square meters. In Germany, this number is closer to 45 square meters. in Ukraine it is 20 square meters per person, according to the official statistics of Kiev.

Kiev and Lvov lead the five largest cities in Ukraine in terms of growth in the cost of office space, which is also growing. During the first half of this year, the purchase price of office real estate in Kiev increased by 18.4% y / y, $ 2,269 per square meter, which is more than double the national average (8.4%). Office rent in Kiev increased by 13.3% to $ 18.7 per square meter, reports the UBN.

In the country as a whole, rents for offices fell by almost 1%, Vladimir Shalaev, General Director of the Uvekon Group of Companies, told Interfax-Ukraine. In Lviv, rents grew at the same rate as in Kiev, but office sales prices rose by 29%, to $ 1,210 per square meter.

Amid the e-commerce boom, warehouse prices were particularly dynamic and rose double-digit in Lviv, Kiev and Dnipro. Warehouse sales prices rose 40% YoY in Lviv, 31% in Kiev and 27% in Dnipro.

According to a study by OLX Real Estate, since the beginning of last year, prices for new apartments have grown in Ukraine by an average of 16%. In Kiev, the most expensive market in the country, the growth was 22%. In Kiev, the average prices for new apartments: $ 41,000 for a 1-room apartment; $ 59,000 for 2 bedrooms; and $ 83,300 for a 3-room apartment. Lviv, the second most expensive market, comparable prices: $ 32,000; $ 44,700 and $ 52,000.

By the end of next year, up to 32 new business centers will open in Kiev, Volodomir Geluta, managing partner of UTG Offices, told Interfax-Ukraine. The leased area is 670,000 square meters, which is almost a third of the existing office space in Kiev. “Frozen and deferred projects have been actively revitalized since mid-2020,” he says. “Outdated shopping centers, hotel complexes, businesses and factories are being reconstructed into office real estate.” He and other commercial real estate analysts believe IT is the primary engine of expansion. …

New foreign investments in construction in Ukraine should reach up to $ 2 billion by 2025, President of City One Development Valeriy Kodetsky told Interfax-Ukraine. “Powerful foreign investors” are interested in the construction of new factories and production facilities, participation in large infrastructure projects and the construction of commercial and residential real estate, – said Kodetsky, summing up the conversations he held last month in Monaco at CC Forum Global Investment in Sustainable Development.


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