Real estate in Ukraine: Another Housing Bubble or Prudent Investment?

The real estate market of Ukraine was almost collapsed by the world Invest in Ukraine  financial crisis in 2008. The construction of 70% of objects was suspended due to the lack of financing and demand from the potential buyers. The banks drastically decreased mortgage lending when their credit portfolios were full of overdue payments and debtors who went bankrupt. However, the situation has changed since then.

The offer of different apartments in Ukraine is very high this year and the process of obtaining them is quick and simple. Most of the real estate agents work in cooperation with banks and you can find various options to buy an apartment using a credit. The growth of mortgage lending is growing fast nowadays despite that banks try to select clients carefully according to the level of their solvency. As an example, Raiffeisen Bank Aval, that is now a part of the Austrian financial group “Raiffeisen”, made more than 18 thousand agreements of mortgage lending.

The price of a one-roomed flat in Kiev is approximately 60,000 USD, a flat with two rooms costs up to 100,000 USD, three rooms will cost 140,000 USD for you. The price of a square meter of a flat in a newly built house is 1,600-2500 USD depending on the district. This is the highest figure in whole Ukraine among the biggest cities. The lowest one is in Kharkiv – 1400 USD. Some regions of Ukraine have a big tourist potential and many people from all over the country and the CIS go there each season. These regions are mostly the Crimea and the Carpathians mountains. It causes the price of the real estate to go up and down each season in these regions. For example, Yalta has the highest prices of apartments after Kiev, especially in summer.

The price is high but one of the reasons why Ukrainians show a big interest in real estate and mortgage lending, especially in the big cities, is the government program of affordable accommodation for families. The price of a credit is about 15% per year, 12% are paid by the state, so borrower has to pay only 3% per year apart from the body of the credit. The terms of mortgage lending depend on banks but usually it is given for 20-30 years.

This boom of interest and demand occurred in the country even though the interest rate is quite high and when it becomes lower, the demand for the Ukraine’s real estate is likely to rise even further. So now, probably, is the perfect time for international investors to forward their money into the real estate of Ukraine.


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