Our analysts work tirelessly to analyze the real estate market in their home country and monitor global trends, so you don’t have to figure out all the intricacies yourself. But admit that the original childhood curiosity sometimes pushes you to dive into the analysis of complex processes on your own. We do not hide from our clients the reasons why we recommend certain properties, so today we decided to share with you our observations and talk about supply and demand, the rise and fall of prices, and most importantly, why all this happens. Thanks to THE Capital, you can not only invest in the Ukrainian real estate market, but also understand it.
What determine price and interest fluctuations?
- Economic and political situation in the country
The Ukrainian real estate market largely depends on the current economic situation. The country's economy underwent a lot of stress with the outbreak of hostilities. Detailed analysis of the market situation in 2022-m and 2023- years eloquently showed that it is too early to talk about complete stability of the pre-war level, but comforting forecasts for this year show that we are not so easily broken. Demand is gradually returning to normal levels. Experts also predict a significant increase in the dollar exchange rate, so we should expect a proportional increase in rent.
- Seasonal travel and forced migrations
Regardless of other external circumstances, demand is significantly affected by seasonality. Seaside and ski resorts attract not only families with children who want to give their kids bright impressions during the holidays, but also everyone else who dreams of going on a well-deserved vacation. Autumn and spring are traditionally considered periods of slight calm in the market, but with the beginning of 2022, even in these time periods, bursts of activity have become common. The shift of the vector to the West and the center is no longer as significant as it was in the first months, so prices level out and stop “biting”. At the same time, many return to the capital or decide to make it their new home. This leads to an increase in the population of Kyiv. The more potential tenants, the higher the demand and the average price per square meter.
- Changes in the housing stock and the number of available offers
Of course, there was no point in thinking about continuing construction work while winged objects, not at all similar to harmless birds, were flying overhead. New projects by developers fell into a deep sleep for several years and are only now beginning to emerge from their protracted pause. More than 70% of construction sites are again teeming with people and equipment from morning to evening. It is not possible to complete the work within the previously established deadlines, which affects not only the comfort and plans of investors, but also rental market. Unable to move into purchased apartment, people are forced to rent housing. An artificial increase in demand pushes prices up.
- Changes in the portrait of the average tenant
If just one and a half to two years ago everyone was trying to find a one-room apartment at the lowest price, now the leading position is occupied by a completely different segment of real estate. Among the tenants there are a large number of representatives of IT specialties. New professions with high wages influence the tastes of tenants. Successful professionals do not skimp on their comfort, which is why premium apartments in the capital’s residential complexes with a full range of services for all occasions have taken the palm from inexpensive one-room apartments. Country at home. в populated areas areas are also popular because, along with fresh air, they offer autonomy.
Which direction is the rental price moving in Kyiv and why?
The dollar exchange rate, the number of new buildings completed and the preponderance towards professions of the future are especially clearly reflected in real estate rental in Kyiv. Comparing the capital with a small town shows that prices are also affected by population density. Being one of the most densely populated cities in the country, Kyiv continues to attract investors and visitors even in unstable times. The decrease in the number of available offers due to a significant increase in the number of city residents allows landlords to set slightly inflated prices. In this regard, experts are of the opinion that the cost of rental housing in 2024 will still remain quite high.
This does not scare many tenants, but forces them to reconsider their values and demand a greater level of comfort for their money. Among the capital's tenants, new trends include:
- underground parking - increased care for the vehicle and an analogue of a bomb shelter rolled into one
- generator – salvation in case of prolonged blackouts
- high-quality household appliances from famous brands - it is important not only to cook a delicious dinner on an electric or induction stove, but also to get rid of its consequences using a dishwasher
- possibility of living with pet – rescued animals from the occupied territories received a chance for a happy life with new owners, so the number of requests for rentals with pets has increased several times
Premium real estate agency THE Capital monitors the market situation and monitors current trends, so we always have offers that can satisfy the requirements of any client.
