The real estate market of Ukraine can confidently declare: "My years are my wealth." 2022-th and 2023-th show positive dynamics and promising numbers. It seems that apartments and houses are not afraid of any changes, because behind the dark strip, blindingly white always appears. The New Year is preparing for us even more offers for purchases and rent and promises to continue already established trends.
At what prices should I prepare my wallet?
Of all RKs currently under construction, more than 80% are "ghosts of the past" - projects whose implementation was planned for 2022-2023, but did not take place on time. There is plenty to choose from, but at what price?
The largest price increase will be observed for objects that please their investors with stable construction rates. If, on average, the cost of a square meter will increase by 3-5% due to the low purchasing power of the population, then in such residential complexes the indicators will reach +10-15% (in hryvnias). As for the secondary real estate market, it promises price growth of 6-10% with further stabilization. Rental market in 2023 could be characterized by only one word - prosperity. The last half-year was the peak of demand and price increases. +50% in the price brought considerable profit to those of our clients who invest in real estate with the purpose of further renting it out. You can follow their example and start the new year with a new passive business.
🏆 One-room apartments took the honorable first place in the "Object of the Year" nomination. They not only became in demand on the market, but also showed the greatest increase in price. Owners of such real estate know that skillful design touches can turn even a small room into a cozy little nest.
What affects the cost of construction and why is it important?
A stable economic situation helps the real estate market to stabilize, but not when there are a number of factors affecting the cost of construction and its increase in price:
- stable increase in prices for raw materials, from which there is nowhere to go
- the detrimental impact of military operations on logistics caused the formation of new, less profitable and more time-consuming routes for the supply of building materials, which negatively affects the prices of the same materials Part of the country's territory remains in danger, and therefore the activities there cannot proceed at the usual pace. As a result, we get a loss of working capacity, and therefore stagnation, an increase in the time and effort spent on what used to be done much easier and faster
- volunteers who became brave defenders of the state or brave employees of the State Emergency Service were recruited from various strata of the population, so there are enough builders among them, and there is a sharp shortage of qualified personnel on construction sites. Professionals are valued at their weight in gold, which has a positive effect on their lives, but by no means the value of real estate
The increase in prices on the primary market will be particularly strongly felt in the first quarter of 2024. But, as you can see, it is not a whim of developers, but a well-founded necessity. The projected size of the increase in the value of square meters is +15% (in hryvnias).
In which direction is the demand moving?
Of course, it's not just military action and seasonality that affect demand. Investors' interest, as always, largely depends on completely objective factors that, even before the arrival of 2022, remained key in making the decision "to buy or not to buy":
- location
- ratio of price and area
- the reputation of the developer
- availability of construction permits
- absence of debts and lawsuits
- possibility of purchase installment plan or by mortgage< /li>
- availability of discounts
- stage of construction and its pace
The last point is one of the most important because the difficult wartime forced even experienced and fearless developers to think about the expediency and continuation of construction work. This year saw a sharp influx of strength and faith in success. more than 70% of developers have returned to suspended activities. It is important that their enthusiasm does not diminish until the projects are put into operation.
For many Ukrainians, an additional factor of "inspiration" is the popular program "єOselya". So far, both developers and investors are looking at it. In 2023, only 1% of all purchased apartments in residential complexes will be purchased under this program. Expert opinion indicates that the development of the state lending system will have a positive effect on demand and will significantly increase the purchasing power of citizens. The primary market will feel pleasant changes, when the indicators will increase from 1% to 25%, which is only 200-250 mortgages per month. quite realistic numbers.
