Demand for residential real estate in Kiev exceeds supply. As a result, Kiev suffers from a lack of available apartments and prices are rising, following the trends seen earlier this year.
Apartment prices in Kiev rose 23 percent last year, according to Lun.ua, an online real estate marketplace. The average cost of a new apartment in Kiev was $ 922 per square meter in 2020; now it’s $ 1,131. They are expected to rise 10-15% by the end of next year, experts say, due to banks lending more mortgages than ever to encourage buyers and planned real estate tax hikes. which will also drive up prices further.
Apartments in Kiev are small compared to more developed regions of the world where the average available space per capita is around 30-40 square meters. In Germany, this number is closer to 45 square meters; in Ukraine it is 20 square meters per person, according to official statistics of the city of Kiev
Kiev and Lviv lead Ukraine’s five largest cities for rising costs for office space, which are also on the rise. In the first half of this year, the purchase price of office buildings in Kiev rose 18.4% year-on-year to $ 2,269 per square meter, more than double the national average of 8, 4%. Office rents rose 13.3% in Kiev, to $ 18.7 per square meter, reports UBN.
Nationally, office rents have fallen by almost 1%, Volodomyr Shalaev, managing director of the Uvecon group, told Interfax-Ukraine. In Lviv, rents rose at the same pace as in Kiev, but office selling prices jumped 29% to $ 1,210 per square meter.
With the rise of e-commerce, warehouse prices were particularly dynamic and increased by double digits in Lviv, Kiev and Dnipro. Warehouse selling prices increased 40% year-on-year in Lviv, 31% in Kiev and 27% in Dnipro.
Prices for new apartments have risen on average 16% in Ukraine since the start of last year, according to a study by OLX Real Estate. In Kiev, the country’s most expensive large market, the jump was 22%. In Kiev, the average prices for new apartments are: $ 41,000 for a T1; $ 59,000 for 2 bedrooms; and $ 83,300 for 3 bedrooms. Lviv, the second most expensive market, comparable prices are: $ 32,000; $ 44,700; and $ 52,000.
Up to 32 new business centers will open in Kiev by the end of next year, Volodomyr Heliuta, managing partner of UTG Offices, told Interfax-Ukraine. The rental area amounts to 670,000 square meters, or nearly a third of the existing offices in Kiev. “The frozen and postponed projects have been actively relaunched since mid-2020,” he says. “Dilapidated shopping malls, resorts, businesses and factories are being turned into office buildings. IT is the main driver of the expansion, according to him and other commercial real estate analysts. .
New foreign investment in construction in Ukraine is expected to reach $ 2 billion by 2025, Valeriy Kodetsky, president of City One Development, told Interfax-Ukraine. “Powerful foreign investors” are interested in building new factories and production facilities, participating in large infrastructure projects and building commercial and residential real estate projects, Kodetsky said, summing up the conversations he has had last month in Monaco during the CC Forum Global Investment in Sustainable Development. .