The real estate market in eastern Ukraine is experiencing a unique situation: housing is being sold at record-low prices, while rental demand remains consistently high. Despite the military risks, investments in apartments here can pay off in less than a year and a half, making this region attractive to investors.
This is reported by Finway
Affordable Housing and Quick Returns
In the cities of Sloviansk and Kramatorsk, one-bedroom apartments can be purchased for $7,000 to $8,000, and sometimes even cheaper. Three-bedroom apartments with renovations cost up to $15,000, while old “Khrushchyovkas” are sold from $5,000. According to local realtor Vladislav Savchenko, the main reason for such prices is the mass exodus of the population and the constant danger of shelling:
“The main reason for these prices is the departure of the population and the risks of constant shelling. About 60% of sales are related to owners leaving the cities and wanting to sell their properties quickly,” explains local realtor Vladislav Savchenko.
The most commonly listed for sale are two-bedroom apartments, with one-bedroom and three-bedroom apartments being less frequent. If an apartment is offered at a price lower than the market rate, it can be sold within one to two days.
High Demand for Rentals and Investment Appeal
The demand for apartment rentals in the cities of eastern Ukraine remains high due to military personnel, volunteers, journalists, and international missions that are constantly arriving in the region. Daily rental prices start from 1,000 to 2,000 hryvnias for an apartment, while monthly rentals for two- and three-bedroom apartments range from 8,000 to 12,000 hryvnias, with prices in Druzhkivka reaching up to 16,000 hryvnias. Even in small towns, rental prices often match those in Kyiv, and apartments are rented out very quickly.
If you purchase an apartment for $7,000 to $8,000 (approximately 280,000 to 320,000 hryvnias) and rent it out daily for 1,200 hryvnias for 20 days a month, the monthly income could be around 24,000 hryvnias ($600). Under these conditions, the investment would pay off in just 12 to 14 months. In comparison, in Kyiv or Lviv, a one-bedroom apartment costs from $50,000 to $60,000, and monthly rent rarely exceeds $500, so the payback period there stretches to 12 to 20 years.
At the same time, the real estate market in the east carries significant risks, as the region remains in a combat zone. Buyers should consider the possibility of damage or loss of property due to shelling. According to the realtor, among sellers, those who have permanently left and do not plan to return dominate, while among buyers are investors who view apartments as a profitable rental business.