Analytical review: how blackout affects the real estate market in Ivano-Frankivsk

Analytical review: how blackout affects the real estate market in Ivano-Frankivsk

Russia is shelling Ukraine’s energy infrastructure to leave the population without electricity. This situation brings changes to everyone’s life, including their decisions to move and buy new housing. Analysts of blago developer, a leading construction and investment company, spoke about the current state of affairs in the primary real estate market and how energy restrictions affect it.

Does the lack of light change the decision to buy an apartment

According to the blago developer analytical center, the structure of appeals has changed since the beginning of massive power outages in the country. To attract customers, the company uses various advertising channels, most of which are digitalized. When people lose power, the quality of electricity deteriorates, or mobile and Internet connections disappear altogether, the number of calls through digital means decreases. But this is not a global problem for the developer. Buying an apartment is an important and responsible decision, so even in the absence of electricity, people come directly to the sales offices and find out what they are interested in on the spot.

“The developer’s product is not virtual, but real. Therefore, the company continues to work fully, serving customers in sales departments. When contacting the office, everyone receives a detailed consultation with the possibility of inspecting residential complexes and further processing documents for the purchase of an apartment,” the company explains.

During the blackout period, it is somewhat more difficult to advise those who are physically located in other regions. A manager can prepare an offer with up-to-date layouts in a few minutes and send it online. But due to problems with the light, a person will not review it immediately, but in 4 hours or a day or two.

At the same time, requests from Ukrainians who have emigrated abroad remain unchanged. Many of them are planning to return to Ukraine and are already interested in real estate.

How developers are adapting to the blackout

Just like any other business in Ukraine, developers are looking for ways to continue working without stopping. The construction industry is one of the most important, as it is crucial for creating new housing stock, providing housing for all those in need, and restoring war-damaged buildings. Developers are also responsible to buyers who invested in construction before the full-scale Russian invasion. Currently, the completion of projects is one of the priorities of all construction companies.

According to blago developer’s management, it is extremely important for the developer to fulfill all responsibilities and tasks on time. To keep to its plans, the developer has purchased powerful generators to ensure uninterrupted operation at construction sites since the first days of the energy restrictions. At the time of this publication, these are 14 residential complexes in different locations in Ivano-Frankivsk. Thus, despite the blackout, the construction of all residential complexes continues, and the city’s energy infrastructure is not overloaded.

Also, the company has been working seven days a week for the second month to expand the time range for consulting. This solution helps managers to serve all requests even better, faster and more conveniently for the clients.

Has the number of transactions decreased?

LUN, the largest portal of new buildings, has published data on the dynamics of views and requests from buyers of primary real estate in Ivano-Frankivsk region. According to them, audience interest in the first half of December 2022 increased by 38% compared to the end of November. And by the end of the year, the number of inquiries from buyers interested in new buildings in the Carpathian region increased by another 6.32%. In other words, despite the unstable energy situation, the activity of primary real estate buyers was only growing every week. Experts from the blago developer analytical center say that due to the shelling in October, a small number of people postponed their purchases to November-December.

What is the reason for this? The first days of the blackout caused a lot of anxiety across the country. People focused on solving their current household problems, and postponed such issues as buying an apartment, etc. After a short period of time, potential buyers began to get used to the situation and look for opportunities to adapt to the new conditions. So those who had previously planned to buy an apartment returned to this issue.

In the period of January 1-10, the total traffic across Ukraine increased by 59% compared to the traffic in the period of December 1-10 (LUN data). The number of appointments increased by 60%. This increase in demand in early January is explained by the factors of stable electricity supply and the absence of shelling.

What to expect in the near future

Large construction companies are working systematically and will continue to implement their projects even if the blackout lasts for more than a month. Powerful construction generators, battery-powered equipment, re-scheduling of construction crews, and increased construction rates will serve as tools to achieve their goals. Of course, every such decision entails economic calculations. To fix the price of square meters and protect yourself from their further rise in price, blago developer analysts recommend buying an apartment at the construction stage. And they provide convincing data:

Dynamics of prices per m2 for apartments in new sections.


The graph shows that in just 6 months, the cost of apartments has increased by 40.8% on average.

If this trend continues, the cost of 1 sq. m. in a new building in 6 months will be approximately UAH 33,000. Based on an area of 60 square meters, this is a price increase of UAH 953,000.

Therefore, those who are planning to buy an apartment, experts advise not to postpone this decision, but to choose the desired layout now.