The Ukrainian residential real estate market has shown mixed signals in 2024, with new construction declining while prices on the secondary market rise in several regions. Data for the first three quarters of 2024 indicates a significant slowdown in new residential development, reflecting a 6.6% drop in the total area of residential buildings for which permits were issued, amounting to 2.96 million square meters. Specifically, the area dedicated to apartment buildings saw an 8.3% decrease, totaling 2.8 million square meters.
The number of new apartments planned for construction also dropped substantially, falling by 12.2% to 30,900 units. Among the regions, the Lviv area reported the highest volume of new housing, with 499,000 square meters of space (approximately 7,000 apartments) approved for development. Kyiv followed with 330,300 square meters of new residential space (about 2,900 apartments).
In contrast, the secondary housing market has demonstrated a modest recovery. Demand for housing in Kyiv reached 75% of pre-war levels from 2021, signaling a rebound in the capital’s real estate activity. Price trends, however, have been on the rise across various regions, particularly in the western and central parts of Ukraine. Notably, cities such as Rivne, Lutsk, Zhytomyr, and Ivano-Frankivsk saw the sharpest increases, with the median price of one-room apartments climbing by 17% to 29%.
The combination of decreased new construction and rising prices indicates a complex real estate landscape in Ukraine, as the market continues to adjust to the ongoing challenges and shifting demand patterns.
Related Topics:
The Real Estate Revolution: Top Investment Opportunities in 2024
Melbourne Mansion Sale Sets New Record for 2024
Future-Proofing Your Real Estate Investments: Key Strategies for Long-Term Success
