Several factors contribute to the political and economical stability inside the country. Withal, prices are growing and the trend is expected to continue.

KYIV, UKRAINE, December 2, 2021 /EINPresswire.com/ -- Ukrainian real estate market analysis

Real estate trends in Ukraine showed two major falls in 2009 and 2015, following the world crisis of 2008 and then the start of the Russian War and annexing of Crimea in 2014. However, soon after, both times, the demand recovered. So as the prices. It took them only around a year to fall to -60% and -40% respectively and the same time to fully recover. Even with a visible positive bounce in the first case – the bounce in 2011 was +20%. Although, there was no such a bounce in 2016 and there was even some decrease in prices between 2016 and 2019 compared to their level in 2013.

But in 2020 and 2021, the situation on the market of real estate investment in Ukraine has changed. The prices are growing. In some sectors, they add up to 100% of the price (detached houses). The growth is strong in apartments as well, adding not less than 10% annual to the cost compared to the last year, on average.

Depending on the region, type of apartment, and condition, the growth is visible at the level of 50% for 2 years. But why?

There are several factors that contribute to such growth:
Political stability. Since Mr. Zelensky became a president, the fight of politicians with one another for power, money, and resources has dramatically dropped compared to all regimens before his reign. The political landscape has stabilized and normalized. He and his team started a real struggle for a higher goal – to become a part of a civilized world of the EU and NATO. Zelensky’s team started a large transformation within the country, for instance, more available housing and bank loans for people, deoligarchization, more transparent work of officials and various procedures, “The state in a smartphone”, more transparent rules of work for business, and less chaos… Although he has haters among past political regimens (most haters are paid and/or belong to older generations incapable of open-ended thinking), the taken course gives dramatically positive dividends, which only a fool blind would deny today.

Stability and even rise of UAH. It has been so for several years – basically, for the entire presidency of Mr. Zelensky. If he’s running for the next elections, we hope this stability is preserved under his second and further presidencies.

Housing market predictions 2021

You don’t even have to be a great economy expert to understand: if a large avalanche of money is flowing in some specific market, the inflation pressure inevitably makes the prices on this market grow. That’s exactly what Ukrainian property is experiencing today: many people, not having any other feasible investment opportunities, turned their gazes at real estate. All segments are on the rise: apartments, detached homes, duplexes, wall-to-wall homes, offices, and other various commercial properties. Both rent and cost of purchase grow.

Using the available data, it is not hard to calculate the ROI of rent before taxes: it varies from 7% to 15% (depending on the region, type of property, location, and other factors). The primary market has significantly activated, although, it is still more economically advantageous to buy a property on the secondary market and renovate it. However, the primary market offers bigger footage and a better location/view. So, yes, you should do your homework to choose an investment object in Ukraine. And do it meticulously. However, there is no doubt that the Ukrainian market of real estate today has the world’s most lucrative investment opportunities, with ever-rising prices until the end of 2021 and at least two upcoming years from that.

Gil Attia
DGY investments
+38 0984566125
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