The Boom of Construction and Prices in Ukraine
Nowadays, Kyiv, the Ukrainian capital, is experiencing an unprecedented construction boom. You may notice that new developments and buildings are rapidly appearing in every part of the city and the outskirts as well.
The statistics are more than encouraging as it allows building companies and real estate investors to manage the investment, which is rapidly growing in Ukraine these days. Let's see the details and predictions of the construction concerning Ukraine's capital, Kyiv.
The Construction Expands
The recent pandemic has made adjustments that eventually influenced the economy of all world countries. As a result, the construction went through temporary stagnation, which negatively affected real estate in general.
However, 2021 became a year of revival of construction as the countries were able to adapt to the circumstances and thoroughly predict the market fluctuations. For example, if considering Ukrainian real estate, in 2020, retail volumes increased by 10% in UAH and 5% in USD compared to the previous year. Thus, volumes of retail turnover in the country remain dynamics despite the economic losses in 2020.
Also, Ukraine's strategic location is attracting foreign investors. The flow of businessmen aiming to run their construction development is getting higher. The survey shows that in 5 years in a row, Ukraine reached top-5 European countries for growth of construction turnover and Germany, Netherlands, Belarus, and Norway (4-10%). That's why the consumer market is appealing not only for its dynamics but also for volume.
The Dynamics of Real Estate Investment in Ukraine
The construction boom is clearly visible in many kinds of real estate in Ukraine, particularly in residential and commercial real estate. According to the statistics, prices in hryvnia increased by 12-15% due to the decline in operation volumes, cost of construction, materials, salary. Single-bedroom apartments had the most significant increase in prices.
For instance, 143,000 new apartments were built in Ukraine in 2020, while the number of built constructions was relatively lower in other countries. Thus, Denmark created only 38,000 apartments, and the Czech Republic 35,000.
The tendency on real estate in Ukraine is the most remarkable in building multifunctional complexes, combining different functions: residential, commerce, offices, and other premises. Among the districts to consider, the most popular ones in Kyiv to purchase a property are Darnytskyi, Shevchenkivskyi, Holosiivskyi, and Obolonskyi, where the starting price of apartments is $50k.
Also, it is necessary to pay attention to the rapid building of cottage towns. The major part of construction consists of cottages with 43%; the second place holds townhouses with 29%, and the third best-selling ones are duplex houses with 21% accordingly. Cottage houses tend to increase their demand on the market as more and more people decide to settle away from the city bustle, preferring to be surrounded by the afforestation and fresh air.
Although the prices for cottages and townhouses in Kyiv region depend on distance from the capital, location, and cottage town conception, they still remain very attractive for real estate investors. For example, 1 sq. meter of property in Brovary will cost you around $600, while the residential real estate in Boryspil, where the airport is minutes away, will be $720 per 1 sq. meter.
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