In the frontline regions of Ukraine, the real estate market has nearly come to a standstill. New residential complexes are not being constructed, and prices for apartments in the secondary market have decreased by 30-50% compared to the pre-war period. The main reasons for this are low demand and increased security risks.
This is reported by Finway
Situation in cities near the front
In cities located near the front line, such as Kharkiv, Sumy, Zaporizhzhia, and Kherson, the primary market is almost non-existent. Developers are hesitant to launch new projects due to the constant threat of shelling and economic instability. As real estate expert Yuriy Pita notes, new housing is not being built in these regions, and the market is limited to secondary real estate only.
“Despite the availability of offers, demand remains low – many residents have left the region or are looking for safer housing in other areas.”
The cost of renting housing in frontline cities has also decreased. The main tenants here are those who are temporarily in the cities – dispatched workers or people with short-term needs.
Market activation in western regions and Kyiv
In Lviv, Ivano-Frankivsk, Uzhhorod, and Transcarpathia, the situation is radically different. Active construction of new residential properties continues, and the market shows stability. Experts do not currently predict a significant price jump, but the trend towards growth remains. The western regions have become a new hub of life for many internally displaced persons, which has significantly increased demand for both purchase and rental of housing. Rental prices in these regions have risen by 20% compared to pre-war levels due to a sharp increase in the number of tenants.
In Kyiv, construction activity is lower than in the western regions, which may lead to a shortage of new apartments in the future. The market is dominated by secondary housing, with apartments that are already renovated remaining particularly popular. Buyers prefer move-in ready options to avoid spending additional resources on furnishing.
Over the past year, rental prices for apartments in the capital have increased by 15-20%. Despite the rise in prices, demand for housing remains high, especially among internally displaced persons and specialists working in Kyiv.