The number of objects in the active stage of realization in the Kiev region for the year increased by 8.3%, up to 221, in the capital decreased by 4%, down to 175, said the founder of M4U Vladimir Danilenko to the agency “Interfax-Ukraine”.
According to analytical data of the company M4U, in 2023 prices in the primary real estate market have not changed significantly.
“In October-2023, the average cost per square meter of primary real estate in Kiev is 61.8 thousand UAH. This is only 2.2% more than in October last year, and 0.3% less than at the beginning of this year. In the Kiev region, the average price per square meter rose to 32.3 thousand UAH, which is 2.3% higher than in the corresponding period last year and 1.8% higher than at the beginning of the year”, – said Danylenko.
He added that in the capital the number of new buildings in the active stage of construction continues to decline: a year ago there were 185, at the beginning of the year 182, now 175. As before, the most residential complexes in the active stage of construction and sales are located in Goloseevsky (28 LCD), Pechersky (27) and Shevchenko (25) districts of Kiev. The least of all – in Desnyanskyi (10), Svyatoshynskyi and Obolonskyi (11 each) districts. The majority of offers in the market are concentrated in the price range of 36-44 thousand UAH/sq. m, among them traditionally prevail offers of comfort class apartments.
“If we look at the schedule of price changes during the year, we will notice a slight correction in almost all classes. The decrease in the cost per square meter began in March, but in late summer-early fall prices began to recover to the level of the beginning of the year,” said Danilenko.
For example, a square meter of economy-class real estate for the year rose in price by 5.2%, to 35.64 thousand UAH, but compared to April this year has fallen in price by 1%.
In comfort class the changes are quite insignificant: +1% for the year and only +0.7% for six months, now UAH 45.1 thousand. In business class real estate today costs an average of UAH 73.9 thousand per square meter – 2.2% less than a year earlier and 6.3% less than at the beginning of this year.
In the segment of elite real estate (142.6 thousand UAH/sq. m) also continues to decrease in prices: by 2% compared to the same period last year, by 2.8% compared to the beginning of 2023. The biggest decrease in this segment was observed in spring, since then a square meter went up by 2.9%.
According to Danilenko, the reasons for this correction are traditional for recent times: a slight change in the exchange rate (affecting part of the supply, where prices are linked to the exchange rate), which came in April-July, the reaction of developers to a decrease in demand during and after the May strikes.
“Last year, the main reason for the price increase was the rise in production costs, adjustment of project estimates. This year both currencies and the economic situation in Ukraine are generally more stable, and market factors of price growth are absent. Moreover, the vast majority of developers, in an effort to attract customers, offer larger or smaller discounts on real estate. This leads to periodic price fluctuations, for example, in the “business” and “elite” segments, where the margin allows such actions,” he said.
The expert stated that the market is gradually changing under the influence of wartime realities. The answer to the increase in demand for more budget housing, including with repair, is likely to be the reorientation of part of the demand to the nearest suburbs, as it was in 2014-2015.
In Kyiv region the number of objects in the active stage of realization for the year increased by 8.3%, up to 221. However, this is still below the pre-war figures – in January 2022 there were 263 such objects.
“To restore work somewhat more actively, compared to the capital, suburban developers are helped by participation in the program “eOselia”. In Kyiv region there are much more objects that meet the criteria of the program, and due to the more affordable price they are in high demand, in particular among internally displaced Ukrainians,” explains Danylenko.
The average price per square meter in Kyiv region rose to 32.3 thousand UAH, which is 2.3% higher than the prices of the corresponding period last year and 1.8% higher than the prices of the beginning of the year.
According to M4U research, unlike Kyiv, most real estate segments in the region demonstrate an upward trend. The only exception is business class, but even there the cost per square meter has been growing over the last three months – up to UAH 35.2 thousand (less by 4.9% than a year ago, but 3% higher than in July-2023).
A square meter of economy class in the suburbs rose in price to UAH 28.3 thousand, or by 5.3% compared to October last year, and for the last six months – by 0.9%. In comfort class (UAH 31.6 thousand) for the year the average price growth amounted to 5.6%, for six months – 4.1%. In the segment of real estate positioned as elite (UAH 45.8 thousand), the price increased by 3.6% over the year, of which by 1.9% over the last six months.
Most apartments are sold in the price range of UAH 26-32 thousand per square meter. As in Kyiv, most of them belong to the comfort class. Most of all new LCDs are being built and sold in Irpen (39 LCDs), Sofievska Borschagivka (20) and Bucha (14).
“The clients’ orientation to the optimal combination of price on the one hand, risk assessment and services of the housing estate on the other hand. Probably, the trend of the next year and a half will be the search for optimal construction formats that combine speed, versatility of design solutions and relatively low cost. We expect that these will be projects in the comfort class and social housing,” the expert predicts.
Established in February 2020, the Ukrainian proptech company M4U specializes in the development and implementation of complex intellectual solutions in real estate development.
