Today, not everyone can look into tomorrow, or rather, only those who constantly keep their finger on the pulse of the real estate market and tirelessly monitor current trends can look. These “visionaries” include our analysts, who analyzed the past and decided to look into the future. If you are also wondering what changes await us after the end of the war, you were not mistaken in choosing this article. Our experts are already making forecasts and are ready to share their vision of the Ukrainian real estate market after our inevitable victory.
Last year's ups and downs
We have previously introduced you to some statistics for 2023. As far as you remember, prices for rent grew steadily, gradually approaching pre-war levels. At the same time, more than 70% of construction sites started operating with renewed vigor, so the primary market reborn after a long period of stagnation, which affected the cost per square meter. In total, in just 1 year, the number of residential real estate sold has almost doubled. This is evidenced by the annual report Ministry of Justice, which records the exact number of purchase and sale transactions carried out by private and public realtors throughout Ukraine:
- in 2022 – 100;
- in 2023 – 172.
There was a 71% increase in those wishing to invest in real estate in their native country. Some of the properties were purchased with a mortgage - 15, of which 918 mortgage loans were taken for the purchase of apartments and houses, and another 10 for land plots. A comparison with similar statistics from 775 shows that:
- the total number of transactions increased by 78%;
- we bought twice as many houses and apartments with a mortgage;
- the number of transactions related to land plots increased by 35%.
Based on last year's statistics, we were able to make forecasts for 2024which are gradually starting to come true. Now we invite you to go even further and look to a time when our skies will be peaceful again. Perhaps it will come tomorrow, so it is especially important for investors to have time to prepare for the changes and plan their budget.
Victory in war and in the market: what to expect in the new realities?
Everything new is well forgotten old. So life after the war will only be a return to its usual rhythm. We will once again have to get used to the sound of airplanes flying overhead, to the fact that sirens can only be heard from the TV screen while watching an apocalyptic action movie, and, finally, to the fact that we can safely buy and sell, rent and rent out, without fear of unforeseen circumstances . Of course, the further development of the market and the country as a whole will be largely influenced by the conditions under which we win, so it’s too early to talk about anything with any certainty. But now we can make predictions for the near future.
President of the Association of Real Estate Specialists (Realtors) of Ukraine (ASNU), Yuri Pita, recently shared his opinion, and it cannot but rejoice. The expert believes that after a slight decline, the cost of housing will only increase. As for the pace, it depends on the return of investors to Ukraine. A security guarantee from the EU and NATO will make our country more attractive to domestic and foreign investors, and the economy more stable and prosperous. It will take some time for the situation to normalize, after which we can expect an annual increase in prices of 5-10%.
Changes on construction sites and cityscapes
Everything that is destroyed must be restored - such the minimum plan was announced at a conference in Switzerland. The scope of work has already been planned for 10 years ahead. It is planned to rebuild destroyed residential property, and also to pay special attention to the formation of new infrastructure that meets the requirements of the time. Activities will focus on several main areas:
- restoration of destroyed housing - houses and apartments damaged during the war will be rebuilt;
- modernization of restored buildings - if you are going to restore housing, then you should also think about improving it. It is planned to improve the safety level of buildings and make them more energy efficient. To achieve this, modern heating and water supply systems will be installed in the apartments, which will make resource consumption more conscious and the life of property owners more comfortable;
- acquisition by the state of non-residential premises - we are talking about apartments in new buildings that have not yet been sold and put into operation. Their purchase and subsequent equipment will allow the state to provide temporary residence to those who need it. Attractive investment proposals will partly turn into social housing;
- the return of interest in investing in front-line areas - their rapid recovery will lead to a huge number of excellent properties at an affordable price appearing on the market;
- the emergence of a new trend in the construction of residential complexes - the emphasis will be on environmental friendliness. The projects will use energy-efficient technologies and environmentally friendly materials, which will minimize the negative impact on the environment.
It will not be possible to eliminate the consequences of the bloody confrontation as quickly as we would like. But there is no need to rush in this matter because quality comes first. The new wave that will shake up the real estate market promises to bring a large number of Apartments и homes. The lucky one will be the investor who manages to grab his ideal property. By collaborating with our agency, you will be the first to learn about new market products that can return a hundredfold the entire invested capital in just a few years.
