Demand for rental housing in the capital in August increased by 30-40% compared to the previous month, for the purchase of residential real estate by 45%, the press service of the Park Lane real estate agency reported.
“We are seeing a significant increase in demand, as pent-up demand has formed over the past six months, which is now being realized. Autumn has always been an active season, and this year, despite the circumstances, we see activity in the market,” explains Victoria Barabash, CEO of Park Lane Academy of Sciences, the words of which are given in the press release.
According to her, demand is affected by the return to the capital of those who previously temporarily left Kyiv due to Russia’s military invasion of Ukraine.
“The number of calls and transactions in the rental market has reached pre-war levels,” Barabash said.
Demand in the rental market is observed mainly for apartments in different districts of the capital costing 10-20 thousand UAH. The most popular are 1-3-room apartments with an area of 45-70 sq. m.
“Requests of tenants have not changed significantly compared to the pre-war period. The greatest interest is still in apartments in new buildings, most often with their own territory, parking. Also, a certain percentage of tenants are interested in apartments in early construction houses. However, the main selection criterion is high-quality repairs and comfort of living,” Barabash clarifies.
If we talk about buying a home, the most active demand is for 1-3-room renovated apartments. About 70%, as at the end of 2021, falls on housing in new buildings. Most buyers are interested in Pechersky, Solomensky, Shevchenkovsky, Goloseevsky, Darnitsky districts, according to a press release.
“We are seeing an increase in demand, an increase in the number of applications, starting from the beginning of August. Regarding the level of discounts, they are exclusively individual and depend on the situation of the owner and his willingness to discount,” Barabash states.
In her opinion, the dynamics of demand makes it possible to talk about optimistic forecasts for the market and the activity of the autumn season.
The Park Lane real estate agency was registered in Ukraine in 2006 and is part of the First Realty Group corporation.
According to the results of January-June 2022, the commissioning of housing in Ukraine has halved compared to the same period in 2021 – to 2 million 420.2 thousand square meters. m, reported the State Statistics Service.
At the same time, it is clarified that the data are given taking into account the housing introduced in accordance with the temporary order of acceptance into operation of buildings built without a construction permit.
According to the report, since the beginning of the year, 1 million 612 thousand square meters have been commissioned in cities. m of housing (66.6% of the total volume), in rural areas – 808.1 thousand square meters. m. At the same time, 46.3% of the total volume of housing was introduced in single-apartment houses, 53.6% – in houses with two or more apartments, 0.1% – in dormitories.
In total, 27,400 apartments were commissioned during the reporting period, which is 54% less than in the first half of 2021. At the same time, 21,200 apartments were built in cities, and 7,100 apartments in villages.
According to the results of the first half of the year, the most housing was introduced in Kyivska (382.3 thousand sq. m, 15.8% of the total volume), Lvivska (305.1 thousand sq. m, 12.6%), Odesa (231.9% ). thousand square meters m, 8.8%), Ivano-Frankivsk (155.3 thousand sq. m, 6.4%) and Zakarpattia (134.3 thousand sq. m, 5.6%) regions and Kyiv (300.5 thousand square meters, 12.4%).
According to statistical data, a reduction in the volume of housing construction was recorded in all regions of Ukraine, except for the Poltava region, where 34.8 percentage points more housing was commissioned than last year (119,000 square meters).
The data are given without taking into account the temporarily occupied territory of Crimea and Sevastopol and part of the temporarily occupied territories in the Donetsk and Luhansk regions, the State Statistics Service reminds.
The cost per square meter in the primary housing market of Ukraine in January-July 2022 increased by 11%, in the secondary – by 8%, OLX Real Estate reported.
“In January, the average prices for the” secondary “in Ukraine were at the level of 17.6 thousand UAH/sq. m., and in July this amount is already 19 thousand UAH/sq. m. If you plan to invest in an apartment in new building, the average cost per square meter will now cost UAH 25.4 thousand / sq. m, which is UAH 2.5 thousand more than at the beginning of the year before the war,” the portal’s press release says.
According to the resource, the cheapest apartments in new buildings in July are offered in the Ivano-Frankivsk region (17.8 thousand UAH/sq. m). The most affordable prices are also in Khmelnitsky (18.8 thousand UAH/sq. m) and Sumy (19.5 thousand UAH/sq. m) regions.
At the same time, the highest prices for new apartments were recorded in Kievskaya (UAH 30.4 thousand/sq. m.), Lvivskaya (UAH 33.5 thousand / sq. m.) and Dnepropetrovsk (UAH 33.6 thousand / sq. m. ) areas.
On the secondary market, the best prices per square meter in July are offered in Sumy (13 thousand UAH/sq. m), Dnepropetrovsk (16.3 thousand UAH/sq. m) and Ivano-Frankivsk regions (16.4 thousand UAH / sq. m). The most expensive housing in this segment is in Kyiv (UAH 34.7 thousand/sq. m), Lviv (UAH 27.4 thousand/sq. m), Vinnitsa (UAH 24.7 thousand/ sq. m) and Chernivtsi (24.6 thousand UAH / sq. m) regions.
According to OLX, the floor, layout, location, finishing, etc. factors also affect the final price. Thus, the average cost per square meter of a furnished apartment on the secondary market in July 2022 is 24.3 thousand UAH/sq. m, while in the new building – 44.7 thousand UAH / sq. m. m.
“As for finishing, a square meter in a secondary housing stock with European-quality repairs will cost an average of UAH 27 thousand, in an apartment with cosmetic repairs – UAH 21.8 thousand. If we consider the primary market, then the cost of a square meter in a house with European-quality repairs will cost an average of UAH 36.3 thousand, with cosmetic repairs – UAH 26.6 thousand, and for fine finishing – UAH 25.8 thousand,” the press release says.
At the same time, the most expensive repair option for both the secondary and primary housing markets is the author’s project. According to the portal, the cost of housing in this case will be 36.5 thousand UAH/sq. m and 53.1 thousand UAH/sq. m respectively.
The national program for the restoration and modernization of housing and infrastructure in the regions of Ukraine involves $150-250 billion in investments.
Such figures are published in the Ukraine Recovery Vision “Strong European Ukraine is a magnet for international investments,” presented at a conference in Lugano.
In particular, a study of the situation of displaced persons by region (internal and external migration) will be conducted, a unified state register of citizens in need of housing will be created, the purchase of existing residential apartments will be provided to replenish social and temporary housing funds, the practice of non-profitable rental housing will be introduced, etc.
The national program provides for the construction of new and restoration of destroyed facilities with energy efficiency and barrier-free facilities; renewal of engineering networks with the introduction of innovations (centralized cooling, heat pumps, biomass, etc.); reconstruction and construction of drinking water purification stations, equipment of modern regional drinking water monitoring laboratories, etc.
At the same time, new construction of residential infrastructure must be carried out in accordance with the best practices of urban planning. In particular, a fair transformation of monofunctional cities, the creation of a network of logistics hubs, etc. are proposed.
As part of the national program, the pilot construction of buildings with close to zero energy consumption (NZEB) is planned, including through the restoration of destroyed buildings in accordance with the requirements of the NZEB.
The national program emphasizes the importance of providing the sector with critical materials. In particular, it is planned to localize the production of windows (5-6 million units per year), localize the production of glass (300,000 tonnes per year), localize the production of thermal insulation materials (about 13 million cubic meters per year).
It is planned to build two residential complexes of 50,000 square meters each in Irpin and Borodianka (Kyiv region) in five months, head of the Kyiv regional military administration Oleksandr Pavliuk said in the Telegram channel.
“Thousands of families were left without homes. And our task as representatives of state power is to provide them with new comfortable housing. We have prepared proposals for developers in the region. To solve this ambitious task, we need joint work, synergy of business, local authorities and the state,” Pavliuk said during a meeting with developers in the region on Monday.
Thus, sites have already been selected for the construction of the residential complexes, taking into account the necessary communications and road infrastructure. The project also provides for the construction of bomb shelters, playgrounds and other social infrastructure.
Developers will be able to decide on participation in the project after studying the sketches and terms of reference.
According to the official, the procedures for starting construction work and commissioning for such projects can be simplified at the legislative level.
According to him, in Kyiv region there are more than 42,000 square meters of apartments put into operation and ready for purchase.
“At present, consultations are being held with developers on the recommended price for the purchase of apartments. In addition, each apartment must have all the necessary plumbing and furniture,” Pavliuk added.
Housing construction is resumed in Kyiv: the first project in the capital, where construction and installation work was resumed, was the New England residential complex.
According to the press service of the developer of the Royal House project, starting from April 5, 2022, the construction team in New England began work on the Lincoln house (5th stage of construction), work on other houses of the complex will gradually resume.
