The build-to-rent segment is gaining momentum in Ukraine, with developer Standard One’s projects maintaining zero vacancy rates and average returns of around 20% per annum in dollars, despite the difficult conditions of the war, the company’s press service reported.
“We are creating a proven financial model that allows our investors to receive stable and predictable income. We build all properties according to the same concept. Investors follow us from project to project because they see real returns,” said Standard One co-owner Alexander Ovcharenko in the podcast “Real Estate Code.”
According to him, thanks to rising real estate prices and rental income, the average return on Standard One projects is currently around 20% per annum in dollars, taking into account capitalization.
He said that before building in Kyiv, the company studied the experience of the US, Austrian, and Polish markets in creating and managing buildings with well-thought-out infrastructure and services.
“When we studied their approach, we set up a mini-laboratory in Kyiv upon our return. It was a kind of ‘test’ apartment in full size. We filled it with furniture and appliances and arranged everything so that future residents would have comfortable housing ready for them. I think we succeeded. Currently, we provide a stable income for investors and offer residents a high level of comfort. The company’s portfolio of properties is growing,” says Ovcharenko.
Standard One’s first build-to-rent project was S1 VDNG, completed in 2019 near the Vystavkovyi Tsentr metro station in Kyiv. All 660 apartments were handed over to investors fully renovated and furnished. The specially created management company S1 Property took over the operational processes: finding tenants, legal support, and 24/7 service for residents. Currently, the occupancy rate in the complex is 99%, and it takes only a few days to find a tenant.
Focusing on residents’ requests, Standard One creates large co-working lobbies, develops service infrastructure near the buildings, and implements innovative engineering solutions in the buildings themselves. For example, one of the company’s new projects will install geothermal heat pumps, which will significantly reduce heating costs and make the building self-sufficient.
According to Ovcharenko, Standard One is reviving the tradition of Kyiv’s apartment buildings, which at the beginning of the 20th century provided the city with quality housing and a stable income for investors. “We combine historical heritage with international practices and modern technologies,” emphasizes Alexander Ovcharenko.
Standard One (S1) is a full-cycle development company that has been developing the build-to-rent real estate segment in Kyiv since 2016. Its portfolio includes the completed S1 VDNG project and the new S1 Obolon, S1 Terminal, and S1 Nyvky buildings.
