Discover the great potential of the Ukrainian real estate market



Analyzing the trends of the Ukrainian real estate market and taking into account the exact taxation of real estate transactions of non-residents of Ukraine in the Ukrainian market.

KIEV, UKRAINE, August 25, 2021 / – Since 2014, when the value of real estate in the secondary market of Ukraine fell by 40% compared to last year (due to the Russian military escapade), now the local economy has fully recovered and shows great growth in 2021. The countries of the world affected by the coronavirus are recovering, just like Ukraine. In fact, it is one of the headliners of the world’s restoration trends, showing quite a lot of mobility.

Trends in real estate in Ukraine
In 2014–2015, the decline in real estate prices in the housing market in Ukraine was about 40% compared to previous years, and since then it has been recovering very slowly, showing + 5% … + 10% annually. In 2018-2019, prices returned to 90% of the 2013 level, retreating slightly by 7% in Covid-demics and fully regaining their fullness by the end of 2020. In the spring and summer of 2021, most construction companies and real estate sellers in the secondary market raised prices by 15% -30% -40%, trying to overcompensate for the decline in Covid-demics and all previous years of stagnation. Other important factors also played a huge role:
• Significant stabilization of the hryvnia (national currency) against the dollar and euro, an increase of 20% in some periods of 2020-2021.
• Simplification of bureaucratic procedures in construction and development, which currently require about 10 bureaucratic procedures to complete in 70-100 days (compared to the previous 200-1500 days), while the cost of new construction is only 4.4% ( compared to the previous 20% -75% in 2013 and years ago)
• Increase of Ukraine’s rating in the Doing Business rating – to 71st place in 2019 compared to 112th in 2014.
• Continuing digitalization of bureaucratic procedures and processes in the country for the population and legal entities, which makes it possible to digitize more than 50% of government documents and taxes by transferring them to a smartphone (with the ultimate goal – more than 90%). This will make Ukraine the most innovative digital country in the world in 2021, with a fast-growing IT sector that already generates over 20% of the country’s GDP.
• Reduced war in the East
• Constantly strengthening pro-NATO and pro-European steps of Ukraine, which in the worst case will lead Ukraine to these alliances by 2035.

What transactions with real estate investments are allowed to be done by non-residents of Ukraine
As a foreigner, you can use different strategies in real estate investmentincluding:
• Ownership of private and commercial real estate.
• Inheritance, sale and purchase of real estate
• Repair and resale
• Lease of own or rented premises to lenders and sub-lenders.
The best time to invest in Ukrainian real estate is now, as prices for all types of properties continue to rise, it is expected that by the end of 2022 – mid-2023 they will grow by another 50% compared to current levels. Today it is worth investing not only in the capital, Kiev, but also in other large regional centers such as Lviv (the largest IT and digital hub in Ukraine today), Dnipro, Kharkov and Odessa. The only two regions in which investment should be deterred are Donetsk (flooded with Russian military and pro-Russian paid combatants) and Crimea (a region of Ukraine with a clean sea line temporarily occupied by the Russian regime).

Housing market forecasts for 2021
It seems that the owners of real estate in Ukraine have decided to overtake European prices, not paying attention to the quality of their properties (most of which are still in the Soviet state and require major repairs). However, prices rise regardless of the state of the object – this is a pleasant specifics of the Ukrainian market for investors. Additional factors largely contribute to the growth of the Ukrainian real estate market:
1. Many local residents have realized the possibility and benefits of working remotely, moving to the countryside, and increasing prices for regional coworking spaces, private houses and apartments.
2. Internet and mobile coverage is improving in rural areas thanks to government programs.
3. The decrease in the cost of lending to residential real estate from banks for individuals thanks to the state program is pumping up the economy with cheaper money, increasing the primary market for newly built properties and providing more opportunities for investment in real estate.

Gil Attia
DGY investments
+380 98 456 6125
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