The year 2022 was marked by a decrease in activity in the Ukrainian real estate market caused by military operations. The volume of real estate transactions fell by 3 times, the number of completed construction projects decreased by half. Damage to the country's housing stock is estimated at $52,5 billion due to the destruction of apartment buildings and private residences. Real estate agency THE Capital has prepared detailed statistics on real estate in Ukraine for 2022, presented in tables. Find out about declining transactions, war damage, damaged and destroyed homes, and real estate market trends and prospects for 2023.
Damage and Destruction of Housing Stock
| Parameter | Value |
|---|---|
| Internally displaced persons (IDPs) | 7 million |
| Destroyed high-rise buildings | 16 800 |
| Destroyed private houses | 126,7 thousands |
| Losses of housing stock | 52,5 billion dollars |
Real Estate Market Dynamics
| Parameter | Change |
|---|---|
| Amount of deals | Fell 3 times |
| Completed construction projects | Fell 2 times |
Damage in Kyiv
| Parameter | Value |
|---|---|
| Damaged houses | 348 |
| Damage | 0,9 billion dollars |
The hostilities resulted in widespread destruction and damage to housing, with 348 homes damaged in the capital Kyiv, resulting in $0,9 billion in damage. The state is faced with the need to restore and reconstruct the housing stock, and large-scale financing is required to cover losses and meet the housing needs of citizens.
Interest in purchasing real estate after the invasion as a percentage of February levels
| City | Price change |
|---|---|
| Kiev | 45% |
| Lviv | 54% |
| Odessa | 43% |
| Uzhhorod | 68% |
| Dnieper | 57% |
Changes in prices for 1-room apartments in new buildings
| City | Average cost (in UAH million) | Price change |
|---|---|---|
| Kiev | 2,33 | + 66 % |
| Lviv | 2,07 | + 57 % |
| Odessa | 1,54 | + 70 % |
Prices per square meter for comfort class housing
| City | Cost per m2 (in UAH) | Price change |
|---|---|---|
| Kiev | 37 000 | + 37 % |
| Lviv | 38 300 | + 60 % |
| Uzhhorod | 34 200 | + 57 % |
| Ivano-Frankivsk | 22 200 | + 63 % |
| Odessa | 35 900 | + 56 % |
| Dnieper | 33 100 | + 44 % |
| Poltava | 30 000 | + 37 % |
Changes in the average rental price of 1-room apartments in Kyiv, Lviv and Odessa.
| City | Average rental cost at the beginning of the year (UAH/month) | Average rental cost in November (UAH/month) | Price change |
|---|---|---|---|
| Kiev | 10 000 | 11 000 | +1 000 UAH |
| Lviv | 7 000 | 16 200 | +9 200 UAH |
| Odessa | 7 000 | 6 250 | -750 UAH |
Based on these data, the following unique conclusions can be drawn:
Real Estate Market Dynamics
The Ukrainian real estate market is expected to undergo serious changes in 2023 due to the military conflict and its impact on the country’s economy. On the one hand, the demand for housing is growing due to the increased need of more than a million families for new housing. On the other hand, resources and capabilities to meet this demand are limited.
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Pricing
Prices for new buildings and rent continue to grow, which is due to a number of factors, including rising construction costs, shortages of building materials and labor. Instability in the country and citizens' uncertainty about their future also play a key role in price dynamics.
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Large Housing Construction
Given the fact that availability of already built apartments cannot meet the growing demand, Ukraine is likely to enter a period of Great Housing Construction. The state plans to expand preferential mortgage programs, but this may not be enough to cover the needs of the population.
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External Investments
Attracting foreign investment in housing restoration programs will be key to solving the housing issue. In this context, the development of mechanisms for insuring war risks plays an important role, which, according to experts, could become a reality in 2023.
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Psychological Factor
Psychological uncertainty about the future is a serious obstacle to the development of the real estate market. Increased attention to issues of security and stability, as well as the success of the Armed Forces of Ukraine, influence consumer decisions regarding home purchases.
Hack and predictor Aviator
The real estate market in 2023 will be characterized by rising demand amid uncertainty and economic instability. Ukraine is on the verge of large-scale housing construction, but the successful development of this area will require joint efforts of the state, business and the international community. The influence of psychological factors and the dynamics of the situation in the country will have a significant impact on the real estate market.
