UTG experts continue to analyze the situation in the real estate market of Ukraine. According to statistics, the residential real estate market is showing a gradual recovery. The development of housing construction provokes active urbanization and the development of local infrastructure: retail, entertainment and social real estate, engineering and road transport systems. Due to this, there is a constant increase in the comfort of living in the suburbs of large cities. But investing in construction at the early stages remains quite risky and in little demand. The greatest demand for purchase is ready-made or almost ready-made housing with a delivery period of up to a year.

Thus, according to statistics, the dynamics of the volume of housing commissioned in Ukraine has slowed down, if in 2022 7,110,224 sq.m of residential space was commissioned, then in 2023 not much more – 7,380,752 sq.m. At the same time, the average offer price in the primary residential real estate market as of August 2024 is the highest in Lviv – $1400 or UAH 57,000 per 1 sq.m, in second place – Kyiv with indicators of $1300 and 52,000 UAH, respectively, and the lowest price in Zaporizhzhia – $580 or UAH 24,000.

At the same time, according to UTG analysts, large indicators of the cost of housing are also due to the fact that the cost of housing construction is growing annually. “This is influenced by changes in the cost of building materials, wages of workers, the introduction of modern technologies, autonomous and advanced engineering systems. Therefore, in most regions remote from the war zone, there is an increase in prices,” UTG experts explain. For example, the average annual indicators of the indirect cost of housing construction in Ukraine as a whole increased by an average of 6.3 percent over the year. Thus, in January 2023, the cost of building 1 sq.m of housing in the country was UAH 20,259, and in April of this year it has already increased to UAH 21,546. Namely, in the Kyiv region, the cost of building 1 sq.m of housing increased from UAH 20,234 to UAH 21,519, and in the Lviv region from UAH 20,150 to UAH 21,430 per 1 sq.m.

In addition to the increase in the cost of housing, the residential real estate market is negatively affected by the underdevelopment of the mortgage lending market, the shortage of solvent borrowers, the low level of protection of creditors’ rights and the demand for long-term installments from the developer. That is, strict lending conditions continue to be typical obstacles to the development of the residential real estate market in Ukraine.