Business news from Ukraine

Business news from Ukraine

In Kyiv’s primary housing market, apartments with European-style layouts have become new standard of demand – study

In Kyiv’s primary housing market in 2026, apartments with European-style layouts have effectively become the new standard of demand. According to an analytical study by the development company Intergal-Bud, their share of the demand structure is 60–70% depending on the segment, and in certain comfort+ and business-class projects, it already exceeds 75%.

As the company notes, the trend, which began as early as 2022, became firmly established in 2025–2026. While the share of demand for apartments with European-style layouts was about 38% in 2022 and 52% in 2024, it exceeded 60% in 2025 and continued to grow in the first quarter of 2026.

Changes to the “єОселя” state program, which took effect in February 2026, served as an additional growth factor. The new area standards stipulate 52.5 square meters for a family of 1–2 people plus 21 square meters for each additional family member, while the maximum housing area eligible under the program is significantly limited. If an apartment exceeds the established standard by more than 10%, the buyer effectively loses the opportunity to take advantage of preferential financing or is forced to cover the significant difference in cost on their own.

“Classic layouts with long hallways, large unproductive areas, and small, isolated kitchens are becoming economically unviable. Today, buyers value not the number of square meters, but the lifestyle the apartment offers. A spacious kitchen-living room, separate bedrooms, a minimum of hallways, and thoughtful zoning are no longer just a bonus but a basic requirement. “This is particularly noticeable among families who are buying a home to live in themselves, rather than as an investment,” the study quotes Elena Ryzhova, Commercial Director of Intergal-Bud.

According to the company’s data, among the largest category of first-time homebuyers—people under 40—one in two chooses one- or two-bedroom apartments with open-plan layouts ranging from 38 to 60 square meters. The primary motivation is purchasing a home for personal residence. Buyers over 40 are more likely to choose two-bedroom or ergonomically designed three-bedroom apartments ranging from 65 to 85 square meters, where privacy, separate functional zones, and comfort for the whole family remain key factors.

Intergal-Bud estimates that, for the same floor area, a European-style layout provides 15–20% more usable space compared to traditional layouts, and the space efficiency ratio exceeds 85% versus 65–70% in older housing stock. This also means lower costs for repairs, heating, and maintenance.

At the same time, supply is not yet keeping up with demand. According to the company’s analysts, only one in seven apartments in new buildings fully meets the criteria for a true Euro-style layout—a spacious kitchen-living room, separate bedrooms, no “dead” hallways, and logical functional zoning.

The company believes that apartments with excess square footage and outdated layouts have already fallen out of active demand, while compact and functional European-style layouts continue to sell quickly even in challenging market conditions.

According to Intergal-Bud’s estimates, in 2026–2027 the market may face a shortage of high-quality finished housing specifically in the segment of functional comfort-class apartments, which best align with the new demand structure. The company cites the updated terms of the “єОселя” program, the limited number of new projects, rising construction costs, and accumulated pent-up demand as the main market drivers.

“Intergal-Bud” is one of Ukraine’s largest real estate development companies, operating in the residential real estate market since 2003. The company is implementing projects in Kyiv, Lviv, Chernivtsi, Zhytomyr, Rivne, Uzhhorod, and other cities. The developer’s portfolio includes dozens of residential complexes, and its main focus remains on the construction of comfort-, comfort+, and business-class housing.

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Rental prices for vacation homes in Bulgaria expected to rise by 25–30%

The vacation rental market in neighboring Bulgaria may see a significant increase in housing prices—by approximately 25–30%. According to the Novinite website, the reason cited is the entry into force on May 20, 2026, of new European regulations for short-term rentals, which could result in up to half of the listings on major online platforms being removed due to non-compliance.

According to market participants, the main effect will be linked not to a surge in demand but to a reduction in supply. If some small-scale landlords exit the market due to new administrative requirements and rising costs, the number of legally available apartments in popular resorts will decrease, which will drive prices up. At the same time, representatives of the hotel sector believe that the market will become more transparent, and consumers will be better protected from informal and misleading offers.

Based on available market indicators, in 2025, renting resort accommodation in Bulgaria remained relatively affordable by EU standards. As of April 2026, average rental rates in resort areas ranged from approximately 5 to 11 euros per square meter per month, depending on location and type of accommodation. This means that a 35–40-square-meter studio typically cost around 175–440 euros per month, while a 55–70-square-meter apartment cost approximately 275–770 euros per month.

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Foreign demand for housing in Turkey may begin to recover after sharp decline

Turkey’s housing market is showing the first signs of a possible stabilization in foreign demand following a prolonged period of decline. According to Hurriyet Daily News, market participants expect a gradual recovery in activity among foreign buyers, although statistics remain weak for now. In March 2026, foreigners purchased 1,353 residential properties in Turkey, a 20% decrease from the previous year, and the share of transactions involving foreigners in total housing sales amounted to only 1.2%.
Expectations for a recovery in demand are linked not so much to a sharp turnaround that has already begun, but rather to the fact that the market appears to be approaching the bottom of the cycle. Over the past two years, foreign activity in Turkey has declined significantly amid changes in the price environment, currency fluctuations, adjustments to the rules regarding residence permits and citizenship through investment, as well as a general cooling of interest from some traditional buyers. At the same time, market participants themselves believe that after such a sharp decline, the sector may begin to return to a more stable level of demand.

For Ukrainian buyers, Turkey remains one of the most prominent foreign housing markets. Over the past few years, Ukrainian citizens have been among the most active foreign buyers of real estate in the country. This is confirmed by official TurkStat statistics: in January 2023, Ukrainians ranked fourth among foreign homebuyers in Turkey; in March 2024, they ranked third; and in December 2025, they were once again among the top three, following citizens of Russia and Iran.
This trend shows that even against the backdrop of a general decline in foreign demand, Ukrainians maintained a significant presence in the Turkish market. For Ukrainian buyers, Turkey traditionally combines several attractive factors: a relatively wide selection of housing, a purchase process that is straightforward for foreigners, a high volume of supply in resort areas and major cities, as well as the opportunity to use real estate as a means of residence, recreation, or capital preservation.

 

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Oversupply in Montenegro’s rental market has strengthened tenants’ position

According to Serbian Economist, Montenegro’s long-term residential rental market entered a cooling phase in 2026: following the rapid growth of previous years, oversupply began to shift the balance in favor of tenants.

Currently, studios in Montenegro are offered at an average price of 300–400 euros per month, one-bedroom apartments at 400–800 euros, two-bedroom apartments at 600–1,200 euros, and houses starting at 1,000 euros. In the premium segment, villas and luxury properties can cost from 2,000 to 10,000 euros per month and higher.

The main reasons for the market stagnation are the decrease in the number of foreign residents staying in the country long-term and the accumulated oversupply. According to a representative of a local real estate agency, property owners are increasingly finding that apartments remain vacant longer than they did a year ago, while tenants have more room to negotiate prices and terms.

The market is no longer operating according to the 2022–2024 model, when owners could quickly rent out properties amid an influx of foreigners and limited supply. Now, in a number of locations, tenants are increasingly choosing between several options, securing discounts, or demanding better terms regarding the lease, furnishings, and utility bills.

For Montenegro, this shift is significant not only for the housing sector but also for the broader demand model, which in recent years has relied heavily on the influx of foreigners, relocators, and investors. If the number of long-term tenants continues to decline, some landlords may increasingly switch to short-term rentals or adjust their price expectations downward.

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Alicante, Spain, has cemented its position among top three housing markets in Spain, with foreigners accounting for nearly half of all transactions

The province of Alicante has strengthened its position among Spain’s largest residential real estate markets, remaining a key hub for demand from both local and foreign buyers. This is reported by Prian, citing data from the Spanish housing market. An additional growth factor remains the high interest from foreigners, thanks to which Alicante maintains a special status in the national market.

According to Idealista, in 2025, foreigners accounted for 45.7% of all housing transactions in the province of Alicante—one of the highest figures in the country and, in fact, nearly half of the market. By comparison, the share of foreign buyers across Spain as a whole was 13.8%, and in the Valencian Community, 27.6%; in other words, Alicante significantly outpaces both the national and regional averages.

High foreign buyer activity supports market liquidity and demand in coastal areas, particularly on the Costa Blanca. At the same time, this makes Alicante one of the main indicators of external demand for Spanish housing, especially in the segments of second homes, investment apartments, and properties for permanent residency.

Among foreign buyers in Spain in 2025, citizens of the United Kingdom, the Netherlands, and Germany dominated. According to Spanish sources in the Valencian Community, in 2025 the Netherlands took first place among foreign homebuyers in the region, displacing the British, followed by Belgians, Poles, Ukrainians, and Germans among the most prominent groups.

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Ukrainian citizens did not make top three foreign homebuyers in Turkey in March

Home sales to foreigners in Turkey in March 2026 fell by 20% year-over-year to 1,353 units, with Ukrainian citizens failing to make the top three list of foreign buyers. This is according to March statistics from the Turkish Statistical Institute (TÜİK).

According to March data, Russian citizens took first place among foreign buyers, purchasing 229 properties. Iranian citizens came in second with 130 transactions, and Iraqi citizens came in third with 84 purchases.

Previously, Ukrainian citizens had consistently been among the largest foreign buyers of housing in Turkey. As previously reported by the Open4Business portal, in January 2026, Ukrainians ranked third among foreign buyers, purchasing 77 properties, trailing only Russian citizens with 219 purchases and Iranian citizens with 118. For the full year 2025, Ukraine also ranked third: Ukrainian citizens purchased 1,541 residential properties in Turkey, while Russians bought 3,649 properties and Iranians 1,878.

Overall, the Turkish housing market showed mixed trends in March. The total number of housing sales in the country decreased by 2.1% compared to March 2025, to 113,367 units. At the same time, mortgage sales rose by 35.9%, to 25,978, and new home sales increased by 1.3%, to 35,725.
Istanbul, Ankara, and Izmir remained the largest markets by number of transactions in March. Istanbul accounted for 21,665 sales, Ankara for 10,236, and Izmir for 7,278.

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