2022 was marked by a decrease in activity on the real estate market of Ukraine caused by military actions. The volume of real estate transactions fell 3 times, the number of completed construction projects halved. Damage to the country's housing stock is estimated at 52,5 billion dollars due to the destruction of apartment buildings and private homes. Real estate agency T.H.E. Capital has prepared detailed statistics on real estate in Ukraine for 2022, presented in tables. Learn about deal cuts, war damage, damaged and destroyed homes, and real estate market trends and outlook for 2023.
Damages and Destruction of the Housing Fund
| Parameter | Value |
|---|---|
| Internally displaced persons (IDPs) | 7 million |
| Ruined high-rise buildings | 16800 |
| Destroyed private houses | 126,7 thousands |
| Damage to the housing stock | 52,5 billion dollars |
Real Estate Market Dynamics
| Parameter | Change |
|---|---|
| Number of transactions | Fell 3 times |
| Completed buildings | Fell twice |
Damages in Kyiv
| Parameter | Value |
|---|---|
| Damaged houses | 348 |
| Loss | 0,9 billion dollars |
The hostilities resulted in widespread destruction and damage to housing, with 348 homes damaged in the capital city of 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 needed to cover the damage and meet the housing needs of citizens.
Interest in the purchase of real estate after the invasion of % from the February level
| City | Price change |
|---|---|
| Kyiv | 45% |
| Lviv | 54% |
| Odesa | 43% |
| Uzhhorod | 68% |
| Dnipro | 57% |
Change in prices for 1-room apartments in new buildings
| City | Average cost (in million UAH) | Price change |
|---|---|---|
| Kyiv | 2,33 | + 66 % |
| Lviv | 2,07 | + 57 % |
| Odesa | 1,54 | + 70 % |
Prices per square meter for comfort-class housing
| City | Price per m2 (in UAH) | Price change |
|---|---|---|
| Kyiv | 37 000 | + 37 % |
| Lviv | 38300 | + 60 % |
| Uzhhorod | 34200 | + 57 % |
| Ivano-Frankivsk | 22 200 | + 63 % |
| Odesa | 35900 | + 56 % |
| Dnipro | 33 100 | + 44 % |
| Poltava | 30 000 | + 37 % |
Changes in the average rental price of 1-room apartments in Kyiv, Lviv and Odesa.
| City | Average rental price at the beginning of the year (UAH/month) | Average rental price in November (UAH/month) | Price change |
|---|---|---|---|
| Kyiv | 10 000 | 11 000 | +1 000 UAH |
| Lviv | 7000 | 16200 | +9 200 UAH |
| Odesa | 7000 | 6250 | -750 UAH |
Based on these data, the following unique conclusions can be drawn:
Real Estate Market Dynamics
The real estate market of Ukraine in 2023 is expecting serious changes 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 opportunities to meet this demand are limited.
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Pricing
Prices for new buildings and rent continue to grow 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 Residential Construction
Given that availability of already built apartments cannot satisfy the growing demand, Ukraine will probably enter the period of Great housing construction. The state plans to expand preferential mortgage programs, but it may not be enough to cover the needs of the population.
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Foreign Investments
Attracting foreign investment in housing restoration programs will be key to solving the housing issue. In this context, an important role is played by the development of military risk insurance mechanisms, which, in our opinion experts, may become a reality in 2023. p>
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Psychological factor
Psychological uncertainty in 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, influence consumer decisions regarding the purchase of housing>.
Visnovok
The real estate market in 2023 will be characterized by an increase in demand against the background of uncertainty and economic instability. Ukraine is on the threshold of large-scale housing construction, but the successful development of this direction will require joint efforts of the state, business and the international community. The influence of the psychological factor and the dynamics of the situation in the country will significantly affect the real estate market.
