Ukraine is experiencing a significant decline in activity in the premium real estate market. Sales of luxury apartments have nearly halved, and property prices in this segment in Kyiv have decreased by 30-50%. At the same time, the construction of new projects has become more expensive, which exacerbates difficulties for developers.
This is reported by Finway
Price Dynamics and Demand for Luxury Real Estate
According to Arthur Mkhitaryan, the director of the development company Taryan Group, at the beginning of the full-scale aggression by the Russian Federation, sales in the most expensive housing segment completely halted. Only after six months did the market begin to gradually recover; however, sales volumes have yet to reach pre-war levels. The expert notes that while the average price per square meter in the more affordable and business segments is rising, prices in the premium segment are, conversely, showing a significant decline.
Compared to 2021, prices for luxury apartments in Kyiv have decreased by 30-50%. If before the war the price per square meter in the secondary market was up to $7,000, now the average cost is only $3,500–$4,000.
Developers’ Reluctance to Launch New Projects
Due to the significant decline in demand and the price per square meter, developers’ margins have become so low that the launch of new premium projects has lost its economic viability. Many developers are currently refraining from investing in new construction of luxury housing and are focusing on other market segments.
“So much so that the launch of new projects is currently unappealing,” Mkhitaryan noted.