Ukrainians Warned About Sharp Rise in Apartment Prices
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Loading... - Tristan Renaud
- 11 Dec 2024
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The rise in real estate prices in Ukraine is influenced by multiple interrelated factors, making the market particularly dynamic in the coming years.
This forecast is prompting potential buyers to consider purchasing real estate now to avoid higher costs in the future. According to the publication 'Hromadske,' the increase in demand and prices is largely driven by a decrease in shelling and an overall improvement in security across the country.
Additionally, the state budget for 2025 has set the exchange rate of the hryvnia to the dollar at 45, which is expected to further influence housing prices. Marianna Bihunets from the company Gazda explains that in the primary market, the price per square meter is traditionally linked to the dollar exchange rate. Gazda anticipates that the cost of housing in the primary market will rise by at least 20% in 2025, with more favorable projects potentially increasing by 25-30%.
Experts from Perfect Group also predict a rise in housing prices in Kyiv, estimating that the cost of new apartments, or 'primary housing,' will increase by 5-10% by the end of 2023, reaching approximately 65,000 hryvnias per square meter by mid-2025. A similar trend is expected in the secondary market, with prices projected to rise by 7-10% by the end of next year.
Analysts from the OLX portal have identified several key factors that will contribute to the rise in real estate prices in Ukraine. These include the expansion of the state mortgage program 'EOselya,' fluctuations in the dollar exchange rate, and rising costs associated with construction materials, salaries, and taxes related to housing purchases. All these elements are likely to drive real estate prices higher in the coming years, making it crucial for potential buyers to act sooner rather than later.
