Analysts have determined how many years one needs to rent a one-bedroom apartment in major cities of Ukraine for the rental expenses to equal the purchase price of such housing on the secondary market.
This is reported by Finway
Comparison of Rental and Purchase Costs in Ukrainian Cities
According to a study by OLX Real Estate, the average period during which a tenant overpays an amount equivalent to the cost of a one-bedroom apartment is 12–14 years. However, this figure varies across different cities depending on rental and purchase prices.
The fastest return on investment for purchasing an apartment is observed in the following cities:
- Dnipro: monthly rent — 10,500 UAH, purchase price — 1,125,625 UAH, payback period — 9 years;
- Zaporizhzhia: rent — 5,000 UAH, purchase — 624,153 UAH, payback period — 11 years;
- Lviv: rent — 18,000 UAH, purchase — 2,270,202 UAH, payback period — 11 years;
- Uzhhorod: rent — 18,723 UAH, purchase — 2,486,918 UAH, payback period — 12 years.
Residents of these cities will spend less than 12 years on rental payments for the total to equal the price of the apartment on the secondary market.
Cities with the Longest Payback Period for Housing Purchases
In Kharkiv, Odesa, and Kyiv, renting is justified over a longer period. For rental expenses to equal the cost of an apartment, residents of these cities need more than 15 years:
- Kharkiv: rent — 5,000 UAH, purchase — 865,490 UAH, payback period — 15 years;
- Odesa: rent — 10,000 UAH, purchase — 1,747,628 UAH, payback period — 15 years;
- Kyiv: rent — 16,000 UAH, purchase — 3,197,833 UAH, payback period — 17 years.
“In major cities with high real estate prices, such as Kyiv or Odesa, renting remains a more rational choice in the short- and medium-term. However, if a tenant plans to live in one city for more than 12–15 years, purchasing their own apartment may become a more financially advantageous decision,” the study states.
Thus, the choice between renting and buying housing depends on the city of residence and the tenant’s long-term plans.