During the full-scale invasion of Ukraine, apartments have risen in price by an average of 40-50%. The number of transactions has decreased, and the real estate market has changed dramatically. In which cities are the cheapest apartments and how much do apartments in newly built residential complexes cost now, blago analysts told.

What is the situation in the regions

February 24, 2022 was a turning point for Ukraine in all industries, and the real estate market is no exception. In the first days of the major russian attack, developers stopped construction across the country. Some managed to resume their work within a month, while others continued to build only partially. And some companies have not been able to find the resources to continue implementing their construction projects. According to blago think tank, the war factor has affected the construction industry in different parts of Ukraine in different ways. In some regions, the war stopped the real estate market, while in others it even revived it. According to LUN, the largest portal of new buildings, new buildings have risen in price the most in Uzhhorod, Lviv and Vinnytsia. Since February last year, the price of 1 sq. m. in Uzhhorod has increased by 61%, in Lviv - by 90%, and in Vinnytsia the price growth rate since the beginning of the war has reached 54%. In monetary terms, this amounts to UAH 38,200 per square meter, UAH 46,800 per square meter and UAH 32,500 per square meter, respectively. For comparison, new buildings in Ivano-Frankivsk increased in price by 44% during this period. In January 2022, the average price per square meter of an apartment in a new building in Ivano-Frankivsk was UAH 17,728, and in June 2023 the price reached UAH 25,500 per 1 square meter. This is one of the lowest values among all major Ukrainian cities. The most expensive cities in terms of the cost of primary housing as of the end of June 2023 are:

• Dnipro - 40,900 UAH/sq. m.
• Kyiv - 46,600 UAH/sq. m;
• Lviv - 46,800 UAH/sq. m;

The cheapest new buildings, according to LUN statistics, are in the following cities:

• Ivano-Frankivsk - 25 500 UAH/sq. m;
• Khmelnytsky - 23 700 UAH/sq. m;
• Ternopil - 24 700 UAH/sq. m.

Based on the above figures, apartments in new buildings in Ivano-Frankivsk are among the cheapest in Ukraine.

Why prices for new buildings are rising

Experts explain this rise in price primarily by a sharp increase in the cost of modern construction and the growing demand for housing caused by the relocation of internally displaced persons to the western regions. "Due to the war, many domestic factories producing building materials have closed down, and the logistics supply chain for important materials has changed. And to continue construction, developers have to work with suppliers from abroad. This means additional transportation costs, dependence on exchange rates and inflationary processes. But despite all these factors, the cost of apartments in Ivano-Frankivsk is still acceptable for buyers. The city is actively developing and becoming more comfortable for living. Blago launches new projects and there are enough offers of primary housing," blago analysts explained.

How investors have changed

In the structure of buyers of apartments in residential complexes by blago, the majority of them are residents of the region. The number of relocated people from different regions who have chosen Ivano-Frankivsk as the most comfortable city to live in and plan to stay here is growing among investors. People from Kharkiv, Dnipro, Odesa, and Kyiv, after visiting Ivano-Frankivsk, get positive impressions of the city's architecture, its compactness, and appreciate the walking distance to all institutions and the absence of traffic jams. And given the more affordable price compared to other regional centers, the number of people willing to invest in new buildings is increasing every year. Buyers' requirements for modern housing have also changed. People are increasingly paying attention to the location of the residential complex, the availability of nearby recreational areas and parks, transport links, developed infrastructure, parking lots, inclusiveness of the complex and the beauty of the architecture. Modern buyers are no longer looking for just an apartment, but a comfortable space with all the amenities near their homes. Blago's projects meet the expectations of the modern buyer and are characterized by a wide variety of housing for different needs. The main interest is focused on finished apartments or apartments at the final stages of construction. But there are also those who want to buy housing at the start of construction at a more favorable price. You have to wait 1.5-2 years for commissioning, but such a purchase will save up to 40% of the final cost.

Forecasts and possible trends

According to experts, the demand for new buildings in the western regions will continue to grow. Why: Many people who moved here by force will stay here for a long time. Even after the victory, most internally displaced persons will not want to return to their home regions. We also expect more activity among buyers who have previously postponed their purchase for an indefinite period. Under the influence of further price growth, people will be more willing to invest in real estate, which is now considered the most profitable investment option. In addition, government programs of preferential lending will be indicators of the revival of the real estate market: "eOselya" and the youth mortgage program. The number of transactions under these programs is growing from month to month due to favorable and simple conditions. With further government support, interest in buying new housing will continue to grow. For more information about possible options for investing in new buildings, please contact blago managers by phone: (067) 761-28-35