During the full-scale war, the cost of housing construction in Ukraine increased by 10–30%. At the same time, the structure of demand in the primary market has changed significantly: whereas previously most apartments were purchased by investors at the construction stage, now end consumers dominate among buyers.
This is reported by Finway
Changes in the Primary Real Estate Market
Arseniy Nasikovsky, a partner at the DIM group of companies, noted during a business summit in Lviv that there is a decrease in investor activity in the primary market in Kyiv. Before the onset of the full-scale war, investors accounted for up to 60% of demand by purchasing apartments at early stages of construction. Now, the main buyers are those acquiring housing for their own residence.
“The reason is not a lack of funds or a decrease in the number of buyers. The issue is that the cost of primary housing often exceeds the prices of ready-made properties on the secondary market nearby. The developer cannot sell below the cost price, which has increased by 10 to 30%,” the expert explained.
Market Forecast After the War
According to Arseniy Nasikovsky, after the end of hostilities, residential real estate will remain a key area for investment. The expert sees particular potential in the business and premium segments, especially in the central districts of Kyiv. The limited number of land plots in these locations will be a factor driving up prices, and as Nasikovsky emphasized, the cost per square meter in premium club houses could reach $7,000–8,000, and in some cases even $10,000.