The capital’s real estate market has once again become the focus of foreign investors. According to market participants, interest from overseas buyers is returning to Kyiv, with various investment opportunities being considered.
This is reported by Finway
What Properties Interest Foreign Investors
Two main groups of potential buyers have been identified. The first group consists of private investors looking at residential and commercial real estate. The second group includes those planning to invest in the construction sector and participate in the restoration of damaged properties. There is particularly high demand from representatives of Europe, the United Kingdom, and the United States, who have already allocated budgets ranging from 1 to 2 million dollars for property purchases, primarily focusing on retail spaces on the ground floors of buildings. Office spaces are currently not attracting significant interest – priority is given to commercial properties with high rental appeal.
Expectations Regarding Profits and Price Growth
Foreigners are actively purchasing apartments priced between 80,000 and 170,000 dollars, which they plan to rent out immediately. The reason is the desire to avoid downtime and generate stable income. The average annual rental yield in Kyiv currently reaches 10%, but investors anticipate an increase to 25% in the future. According to their forecasts, the rental cost of mid-range housing, which today stands at 475–590 dollars per month, could rise to over 1,000 dollars.
Among foreign investors, there is a belief that real estate prices in Kyiv are currently at a minimum level and will sharply rise in the near future.
Similar expectations apply to the sales market. Currently, a one-bedroom apartment in the capital costs about 67,000 dollars, while a two-bedroom apartment is priced at 105,000 dollars. Foreign buyers predict that housing prices will double over the next few years.
The construction and restoration segment also attracts investors from the Netherlands, Germany, and the United Arab Emirates. In particular, one British company is already looking for an office in Kyiv to work on projects related to the restoration of urban infrastructure.