The average prices for new business-class residential buildings in Kyiv amounted to UAH 48,800 or $1,820 per square meter in early September, which is 30% higher than in the same period last year, Ramil Mehdiyev, CEO of ENSO, has told Interfax-Ukraine.
“The prices for business-class buildings are more intensified than the average prices for new buildings in Kyiv, which have risen over the year from UAH 26,600 to UAH 32,000 per square meter, that is, by 20%,” he said.
The expert explained the difference in the dynamics by a higher share of imported components in construction of business-class real estate. “Imported components are becoming more expensive than local production. The situation with imported materials is aggravated by quarantine restrictions and lockdowns, which have significantly complicated logistics,” Mehdiyev said.
In addition, in business class, the architecture and design solutions are usually much more complex, which bring additional costs both for materials and for work performance by qualified specialists. “You should also not forget about the global trend of housing prices rise and the fact that real estate in Ukraine has become almost the main investment tool for citizens. This increases demand, which in turn affects the price,” Mehdiyev said.
The expert predicts that the upward trend in the cost of housing will continue next year. “According to our estimates, the trend will not change until at least mid-2022. Much depends on the macroeconomic situation and the recovery of the world’s leading economies. First of all, we are talking about China, which is rapidly increasing consumption of raw materials, thereby heating up demand for the same metal,” Mehdiyev said.
According to him, we should also not exclude the emergence of new strains and, as a result, the possible introduction of quarantine restrictions. “This will most likely lead to a repetition of the situation in the spring of 2020, when there were almost no sales in the real estate market. Actually, this led to deferred demand, which was tapped in August 2020. At the same time, a rapid rise in prices began,” the expert said.
The development company ENSO, established in 2017, is implementing three projects in Kyiv.
