Investors strongly believe that it is more profitable to invest in less developed countries, because in the long term, the profitability is higher than in developed countries with stable economies.
Judging by trends in real estate, Ukraine looks like a very profitable country. For example, this is clearly seen when comparing statistics on property prices in other European countries. Thus, smart investors prefer to invest in residential developments under construction, as they can save a sufficient amount of money early on and therefore multiply future income from apartments.
As you can see, the cost of real estate in Ukraine is relatively lower for investors, which makes it easier to buy and increases its value. Thus, prices for new buildings in Kiev in the second quarter of 2020 increased by 0.43% (0.1% in real terms) to $ 930 per sq. (Delmendo, 2020). On the contrary, the average price per square meter in Paris starts from $ 10,000, in Zurich – from $ 12,000, and even reaches $ 16,000 in London. This comparison makes it clear that real estate investment opportunities in Ukraine are much more affordable in terms of profit and initial investment for businessmen.
Besides, Ukrainian real estate is an ideal investment option as investors get the chance to get a much higher return on investment (ROI). According to the statements of the Central Bank of Ukraine, developers maintain their optimistic forecasts for the Ukrainian real estate market. The study showed that developers expect a twofold increase in housing prices compared to the beginning of 2021 (Datskevich, 2019).
Ukraine is becoming more and more attractive for foreign investors, and here’s why. The influx of tourists coming to the capital of Ukraine Kiev is constantly increasing. There are many things in the city that attract the attention of people from all over the world. For example, Kiev is considered one of the greenest cities in Europe, combining the so-called “oasis” in the city with breathtaking views of the Dnieper.
In addition, Kiev is full of historical sites and architectural monuments that take you to another dimension. Tourists will also appreciate the vibrant life of the capital, as the center is full of nightclubs, karaoke, bars and restaurants. Therefore, the demand for real estate, especially in the city center, is always high. Investors should pay attention to the investment opportunities in Kiev.
Thus, according to the results of market research, the average cost of an apartment in a new building will start from only 60 thousand dollars. These affordable prices allow businessmen to earn a high annual income when there are tenants or receive income up to 15% of the property when it is sold.
However, you can maximize the final price of the property by flipping it in advance. Flipping is quite beneficial, especially if you are good at real estate and know how to fix them properly. However, you may need a team of professionals to help you with the renovation.
The principle of this method is to repair property, repair things, change the design and layout of the interior, etc. Thus, this significantly increases the value of the apartment. Undoubtedly, income differs depending on the amount you invested in the coup, the services of the construction crew you may have used, and so on. Nevertheless, statistics show that the average profit from resale varies from 5 to 20% of the initial price of an apartment (Datskevich, 2019).
In terms of housing market forecasts for 2021, residential real estate will remain in demand as property prices continue to rise. In terms of revenue, commercial real estate in Ukraine is also quite profitable. As Kiev becomes a huge metropolis, there is a need for the construction of shopping centers, shopping centers, business centers, etc.
For example, many commercial tenants tend to pay a commission on options such as first-order refusal at a nearby office in order to keep those options away. Look for the best prices in the Eastern European market, especially in Ukraine, where 150 square meters will cost you about $ 2,100, and commercial real estate of the same area in Poland – about $ 2,700 (Delmendo, 2020).
In general, Ukraine leads the top European countries, where investors from all over the world can easily invest their money in Ukrainian real estate and increase their profitability. Thanks to affordable prices for luxury apartments and an attractive policy of the country, even novice investors can start their financial journey and receive a stable passive income in Ukraine with minimal risks.
If you want to save your time and effort in the investment process, contact DGY Investments. Our company specializes in finding the best real estate options on the market and making your investment profitable. There is no need to forecast the market, compare prices and calculate possible problems – our team of experts will do everything for you. DGY has extensive experience in transforming businessmen into successful real estate investors who easily generate up to 15% annual property returns.