Nobody wants to buy, but prices are rising? What happens to new buildings in Ukraine

After the start of martial law in Ukraine, real estate sales stopped. Subsequently, this market revived, but the level of sales is still lower than at the beginning of February this year. At the same time, prices for apartments in new buildings are rising further.

LUN analysts showed in which cities of Ukraine and how much one square meter costs, and why housing in new buildings is constantly becoming more expensive.

The most expensive apartments are in Kyiv and Dnipro

According to experts, prices per square meter in new buildings rose even more in June and exceeded the price level before Russia’s full-scale invasion of Ukraine.

So, in Kyiv the cost of 1 sq. m. now higher than in February by 3%, and in Lviv and the region, for example, by 10%. The highest cost in early July, on average, was set by developers in the following cities and regions:

• 1 310 USD (38 767 UAH) per 1 sq. m. – Kyiv;
• 1080 USD (31 960 UAH) per 1 sq. m. – Dnepropetrovsk region;
• 960 USD (28 409 UAH) per 1 sq. m. – Transcarpathian region;
• 900 dollars (26 633 UAH) per 1 sq. m. – Lviv and Vinnitsa regions.

The reasons for this rise in prices are called the growth in the cost of construction and the postponement of the start of construction of new lines.

At the same time, construction is resumed in all regions in different ways: in the western regions, work was resumed on 90% of residential complexes, and in Kyiv, for example, only 40%. Also, the level of sales is significantly lower than in February.

“Current sales are significantly lower than pre-war. According to developers, pent-up demand is now forming. Investors are eyeing new buildings, but are not ready to invest as actively as before the war, because of the unpredictability of the future,” – the message says.

Experts add that developers understand the reluctance of investors to buy housing right now, so stir up interest with special offers. For example, they allow long-term installments for finished or almost finished apartments.

The value of real estate will change drastically

Earlier, “Today” was told that the primary real estate market is waiting for dramatic changes. According to the CEO of the development company GREENOL Oleg Prikhodko, the following factors will affect prices and the volume of offers in the real estate market:

• increase in the cost of mortgage loans;
• mass sale of apartments in new buildings, for which investors will no longer be able to pay;
• housing in damaged houses and apartments from people who decided not to return from abroad, etc.

There are also other significant factors for pricing. Read what will happen to housing prices.

In addition, we wrote about what and why will happen to the value of real estate in Kyiv before the end of the year, and what to do with real estate in Irpin and Bucha.