Property prices in the capital may fall by 50%/Unsplash
After the start of a full-scale war unleashed by Russia in Ukraine, every second resident left Kyiv. Therefore, the housing market has been seriously affected, and now there are much more apartments than those who want to rent or buy them.
So far, Kyiv is in no hurry to buy property, and there are much fewer people who want to rent housing than those who gives him up. Experts and analysts told about what is happening on the market exclusively to the Channel 24 website.
Prices have decreased
President of the Association of Real Estate Specialists (Realtors) of Ukraine Yury Pitanoted that the housing rental market in Kyiv has already recovered. At present, supply is many times greater than demand, so prices have decreased by 30-50% compared to the pre-war period.
Regarding the purchase and sale of residential real estate after the opening of the register, in most cases, the conclusion of advanced transactions in the pre-war period is observed. There are also isolated cases of concluding agreements on objects put up for sale after the opening of the register. In the near future, supply will exceed demand, which may lead to a decrease in the value of real estate compared to the pre-war period by 20-30%. Pita explained.
The demand for rent will gradually increase due to the resettlement, the demand for the purchase will also recover, but we do not expect a renewal to pre-war levels.
The specialist clarified that much will depend on the situation at the front, and the most popular will be economy-class housing costing up to $50,000. Also, demand will be for 1-2 room apartments in finished new buildings.
Demand will grow
Expert of the DOM.RIA Analytical Center Anatoly Topal assured that demand will grow, because people are returning, internally displaced persons from hot zones are coming, business is starting to work.
If the situation around Kyiv does not worsen, this trend will continue. Specialists expect that by the end of July – beginning of August the demand for rent will increase by 35 – 40%. But at the same time, there will be no more than 40% of the level of 2021. Two-room apartments along metro lines will become popular.
In Kyiv, housing supply exceeds demand/Photo by Unsplash
According to him, despite the open registries, there is no boom in apartment purchases. The sales market will gradually recover, but one cannot expect any rapid growth Pre-war agreements are now passing.
What will happen to the secondary market is still difficult to predict. Experts expect that by the end of summer it will start working and will reach 20-25% of the pre-war period. The cost of real deals may change when the war ends.
After the war, rental prices will rise by 15 – 20% immediately. Also, pricing is influenced by the inflation component and fluctuations in exchange rates. In the event of rising inflation, in the event of a sharp rise in the exchange rate, many landlords will try to raise prices. But the main factor will be the income level of the population. Also, rising prices will constrain the growth of supply. By autumn, supply is expected to grow by another 20% compared to May 2022,” Topal emphasized.
Still saved the downward trend in prices will continue in the coming months, but we will see how much lower prices will be after a relative update of the real estate market.
On the OLX Real Estate portal, it was noted that the Kiev region is the leader in the number of vacant apartments for rent. Over time, the number of premises in the region has almost doubled.If before February 23 it was possible to choose more than 20 thousand houses, then in May there are already more than 40 thousand.
At the same time, the average rental price in May, on the contrary, decreased by almost 22 % and is less than 9 thousand hryvnia per month.
If we compare rental prices now and before February 23, then in Kyiv the monthly rent for a one-room apartment has decreased by 1,590 hryvnia and is UAH 7,945, a two-room apartment is UAH 4,879 (UAH 11,198), a three-room tnoy – by UAH 8,087 (UAH 16,426), – analysts specified.
