Significant regional differences are observed in the Ukrainian residential real estate market, which have become particularly noticeable in the context of the full-scale war. A substantial drop in prices has been recorded in the secondary market of frontline areas, while the situation is radically different in the western regions and the capital.
This is reported by Finway
The Situation in Frontline and Western Regions
In cities such as Kharkiv, Zaporizhzhia, Sumy, and Kherson, the primary housing market is virtually non-existent. New constructions are not being built here, and the real estate market is primarily limited to offers in the secondary market. Real estate market expert and former president of the Ukrainian Real Estate Association, Yurii Pita, notes that in these regions, prices for secondary housing have fallen by 30-50% compared to pre-war levels.
“In cities like Kharkiv, Zaporizhzhia, Sumy, and Kherson, there is essentially no primary market. Currently, new constructions are practically not being erected there. Therefore, it is not possible to talk about a market in these regions,” said the expert.
In contrast, in Lviv, Zakarpattia, and Ivano-Frankivsk, housing construction continues quite actively. Here, the market supply is stable, and significant price increases for real estate are not anticipated in the near future.
Trends in the Kyiv Market and Demand for Rental
In Kyiv, construction activity is lower than in the western regions, which may lead to a supply shortage and further price increases for housing. According to Yurii Pita, the secondary market currently dominates the primary market: apartments with renovations are in the highest demand, as people strive to settle their living conditions as quickly as possible.
Rental housing in frontline cities has also become more accessible than before the war. Most often, housing is rented by people coming for business trips. Meanwhile, in the safe regions of the country, demand for rentals is steadily increasing: in most cities, prices have risen by 20% from pre-war levels, and in Kyiv, by 15-20% over the past year. The revival of the rental trend is explained by the growing number of internally displaced persons, particularly from Sumy and Zaporizhzhia regions.
Overall, a balance of supply and demand is observed in the secondary market of Ukraine. Sellers are generally open to slight negotiations, and prices remain relatively stable.