DIM commissioned 80.5 thousand square meters in 2024, and plans to commission more than 100 thousand square meters in 2025, the company’s managing partner Oleksandr Nasikovsky told Interfax-Ukraine.
“According to the latest LUN data, 10.7 thousand new apartments were commissioned in Kyiv in 12 months (the first to third quarters of 2024 plus the fourth quarter of 2023). Almost 10% of this figure is DIM’s facilities. In 2024, we commissioned 1191 apartments with a total area of 80,467 sq. m. in three complexes: “New Autograph, Lucky Land and Park Lake City,” he said.
Mr. Nasykovsky also noted that this year the company started construction of a new premium segment complex The One in Kyiv at 7b Mechnikova Street. The 140-apartment complex, according to the concept, will offer the service of a 5-star hotel, 360-degree panoramic views, a closed area with round-the-clock security, underground parking with elevators, a public space of 1400 square meters, two conceptual terraces Front Yard, Secret Garden, and an outdoor pool.
“This is the first residential project in Ukraine with nano water purification and hepa air filtration. We plan to complete the construction of the complex in the second quarter of 2028,” said DIM’s managing partner.
In 2024, DIM successfully attracted targeted financing from domestic strategic investment partners for the development of existing and prospective facilities.
“According to the signed agreement, we are not yet disclosing the amount of investment and the names of Ukrainian investors, but we can say that this shows high confidence in us and confidence in the future of Ukraine. We believe in Ukraine and continue to build six of our complexes: “Metropolis, Park Lake City, Lucky Land, A136 Highlight Tower, Olegiv Boutique Residence and The One,” Nasikovsky emphasized.
Regarding plans for 2025, the managing partner announced the launch of a new premium suburban project (location and brand have not yet been announced), as well as plans to commission a significant amount of housing.
“In 2025, we plan to commission more than 100 thousand square meters: the A136 Highlight Tower complex, building No. 3 of the Metropolis complex, building No. 4 of the Lucky Land eco-complex, and buildings 1.5, 2.1, 2.2, 2.3, 2.4 of the VITA district and buildings 1.1 and 1.3 of the AQUA district in the Park Lake City business class suburban complex,” the expert listed.
Nasikovsky noted that among the trends of the real estate market in 2024, the main one is that consumers have gradually adapted to the challenges of wartime.
“If in 2023, after the rocket attacks on Ukrainian cities, market activity stopped for almost a week, this year we see that the current military operations, although they have a significant impact on the activity of buyers in the market. People have started living here and now and are making plans for the future,” he said.
The expert also noted the significant impact on the real estate market of the government programs “eHouse” and “eRestoration”. According to him, since DIM joined the eHouse program in the spring of this year, about 30% of inquiries to DIM sales offices have been related to this program, of which about 10% have been converted into real transactions. At the beginning of September 2024, the first agreement under the eRestoration state program was concluded in the Lucky Land eco-city.
“Government programs continue to support activity in the residential real estate market today and will continue to do so in 2025. However, the main change in the real estate market in 2024 is the tax changes (increase in the military tax to 5%) introduced at the end of 2024, which will have several important consequences for the residential real estate market,” he said.
Nasikovsky stated that the increase in the military duty will increase the costs of building materials producers, logistics, contractors and other market participants and, as a result, will push up the price per square meter in new buildings. In addition, it will affect the choice of buyers who are now considering housing as an investment tool, they may start looking for alternative options for investing their money.
“However, despite these challenges, we remain optimistic and see that the real estate market continues to gradually adapt and find new opportunities for development,” he summarized.
As for the behavior of those buyers who choose housing for themselves, Nasikovsky observes that in 2024 some of them began to reorient from the secondary market to the new construction market.
“This is facilitated not only by the government programs eHouse and eRecovery, but also by developers’ own financial programs. For example, DIM develops internal lending programs, offers flexible purchase terms and extends installment terms as an alternative to government programs,” he said.
DIM has an installment program of up to 5 years with a down payment of 20%; a program with flexible payment terms, when the buyer pays a down payment of 30% before the completion of construction, and the rest of the amount is paid within two years after the object is ready.
“Also, for the first time in the real estate market, DIM has introduced a financial guarantee program – in the contractual terms between the investor and the company, we have included penalties of 0.03% in favor of the client for each day overdue according to the schedule of the object’s readiness. The program is already in place in A136 Highlight Tower, Olegiv Boutique Residence and Park Lake City. We are working on implementing the guarantee in our other projects,” Nasikovsky said.
As for the requirements of buyers to the facilities, security and energy independence remain in the first place.
“The availability of an access control system, video surveillance, security, and especially underground parking lots or shelters are the main requests of every second buyer. Increasingly, people are paying attention to the energy independence of buildings, the availability of solar panels, generators, uninterruptible power supply systems, heat and water, which ensure the autonomy of buildings,” the expert noted.
At the same time, he emphasized that, just like before the war, future residents pay great attention to the infrastructure inside and around residential complexes, the availability of green areas, modern playgrounds and sports grounds, schools and kindergartens, as well as convenient transportation. People are now more often looking for housing for themselves, so they choose projects with the concept of a “15-minute city.”
“If the active phase of the war continues in 2025, the housing market will not change significantly. However, it is already clear that the cost of new buildings will increase by an average of 15-20%. The reasons for this include changes in taxation, inflation, and rising costs of construction materials. We hope that demand will gradually increase, and government programs will stimulate it,” Nasikovsky summarized.
The trends of the real estate market in the first half of 2024 were analyzed by Oleksandr Nasikovsky, Managing Partner of DIM Group of Companies.
The number of sales transactions in the first half of 2024 is gradually increasing compared to the same period in 2023. But it all depends on the readiness of the object and its class.
Currently, the majority of buyers of apartments in the primary market are those who buy housing for themselves. These are people who associate their future with Ukraine, with Kyiv. In this case, it makes no sense to postpone this step, because developers are now offering good conditions and trying to keep prices down. Most of these people lived and planned to buy housing in the capital even before the war.
There are also IDPs among the buyers, but their share has not increased significantly. They have more stressful circumstances, a longer period of adaptation, and need more time to take this step. In addition, some of them are considering the western regions of Ukraine for purchasing housing.
While in 2023, there were few investment transactions for the purchase of real estate for resale or lease, in 2024 we are already seeing a gradual recovery in investor interest as the real estate market is gradually recovering.
For new clients, realizing the difficult decision they are facing today, we are developing special programs for the purchase of housing: we offer installment plans for a long period (up to 5 years), reduce the down payment, offer to pay part of the funds before the completion of construction, and the rest within three years after.
We can state that the cost per m2 of primary real estate will continue to grow. This is due not only to the future growth in demand for new housing, but also to the rise in the cost of building materials, energy, and related resources required for the construction of houses.
Yes, there is pent-up demand and it has a cumulative effect. Ukrainians still have a need for new housing, but not everyone is ready to invest in real estate in the capital. People are hindered by understandable fears, lack of stability and confidence in the future due to the war. But as soon as we win, people will return to solving the housing issue, because it is still relevant.
Internal migration within the country will also have an impact. Some people will stay and build their future in Kyiv.
Investors will be interested in the future growth of the cost per square meter. After the Victory, this process will start quite quickly.
The cost of apartments in high-quality facilities will increase. This is due not only to the future growth in demand for new housing, but also to the rise in the cost of building materials, energy, logistics, and related components required for the construction of houses. So far, we have been able to balance, but over time, these factors will take their toll and prices will go up.
DIM Group has commissioned two construction projects – the first complexes of the eco-city Lucky Land and the residential complex Novy Autograph, with a total of 1060 apartments, the company’s press service reports.
“Like all developers today, we face many obstacles. However, we are making every effort to fulfill our obligations to our customers. Many people in the country are left without homes. That is why it is important to build new houses today,” said Oleksandr Nasikovsky, Managing Partner of DIM Group.
It is reported that DIM continues to increase the pace of construction, with more than 100 thousand square meters of housing planned to be commissioned by the end of the year.
The Lucky Land residential complex is a modern eco-city of seven blocks in Kyiv, which corresponds to the multifunctional live-work-play format. At the end of January 2024, DIM put into operation sections 1, 2, 3 of the third stage. House No. 3 received its own postal address – 4D Berkovetska Street. In April, DIM will complete the production of technical passports and start handing over apartments to owners in May.
In March 2024, the New Autograph comfort class residential complex received a certificate of readiness. The complex consists of two buildings with 18-26 floors and 810 apartments, and its utilities include artesian water supply and individual heating. The area around the residential complex has a well-developed infrastructure – from children’s and sports grounds to commercial facilities and underground parking.
A number of other projects by DIM are under active implementation. In particular, the construction of the 33-storey A136 Highlight Tower multifunctional complex is underway. Recently, it was the first in Ukraine to be audited by CBRE Ukraine, the largest international investment consulting and real estate management company. The international auditors confirmed the overall completion of 54% of the works. Given the pace of construction, the complex will be completed this fall.
During the year, DIM also plans to complete the construction of the third building of the Metropolis residential complex, as well as commission five buildings of the Park Lake City eco-city located 15 minutes from Kyiv.
DIM Group was founded in 2014 and consists of six companies covering all stages of construction. To date, it has commissioned 12 houses in six residential complexes with a total residential area of over 218 thousand square meters. Six residential complexes of “comfort+” and “business class” categories are under construction: “New Autograph, Metropolis, Park Lake City, Lucky Land, A136 Highlight Tower, Olegiv Podil.
The cost of construction and installation work in Ukraine has increased by 35% since the beginning of 2023 amid a shortage of personnel that has reached 40% in some companies, Oleksandr Nasikovsky, managing partner of DIM Group, told Interfax-Ukraine.
“There is a real shortage of highly qualified personnel. Today, there is an acute shortage of monolithic workers, crane operators, painters, and electricians. In some markets, the shortage in companies reaches 40%, which significantly affects the industry. Since the beginning of the year, the cost of construction and installation work has already increased by more than 35%, which is due to both inflation and a shortage of personnel. I think we will see growth of at least 5-7% in this category by the end of the year,” he said.
Nasikovsky emphasized that the availability of labor and skilled personnel is critical for the recovery of Ukraine, where more than 170,000 residential buildings, 19 airports, approximately 130 railway stations, 3,400 educational institutions and other facilities have been damaged or destroyed. Ukraine is facing an important challenge to ensure the availability of skilled construction workers to rebuild and develop the country, and this requires decisive action and support at all levels.
“We really need a system of motivation at the state level that would encourage young people to study for production specialties and support those who choose the construction industry for professional realization. It could be social incentive systems (social mortgage programs, for example) or additional financial incentives,” Nasikovsky said.
DIM Group was founded in 2014 and consists of six companies covering all stages of construction. To date, it has commissioned 12 buildings in six residential complexes with a total residential area of over 218 thousand square meters. Six residential complexes of “comfort+” and “business class” categories are under construction: “New Autograph, Metropolis, Park Lake City, Lucky Land, etc.
DIM Group expects to increase the share of investors who make timely payments under installment agreements to 80-90% by the end of this year, while today their number is 50%, said Alexander Nasikovsky, managing partner of the group.
“Exactly half of those who bought real estate from us are not waiting for the war to end and are already fulfilling their obligations. They see that every hryvnia from their pockets is actually spent on the construction of their own home, not just a new pit. We are now working to ensure that by the end of the year the percentage of those who pay under installment agreements will be at the level of 80-90%,” Nasykovsky said in a column for Interfax-Ukraine.
According to him, the rapid resumption of construction work after a pause at the beginning of the full-scale invasion allowed for an increase in the number of timely payments under installment agreements. Thus, at the beginning of the active phase of the war, only 10% of investors paid by installments, while today their share has reached 50%.
In addition, to support and stimulate demand, DIM has developed a number of financial instruments: special terms of debt payment and early repayment, favorable exchange rate offers, and debt restructuring. In addition, the company launched a guaranteed yield program at 10% in US dollars and a trade-in program.
Despite the limited effective demand, housing prices were affected by rising construction costs, fuel prices and inflationary processes, Nasikovsky noted.
“In annual terms, we had almost 27% inflation. “Contracts and extensions, and sometimes radical changes in supply chains due to the loss of capacity of producers of a number of building materials in the southern and eastern regions and the relocation of many businesses, are also driving up the price tag. Over the past year, the weighted average cost of construction in housing increased by at least 45%,” he explained.
According to him, certain categories of building materials increased in price by 30-70%, most notably concrete, glass, plaster, wood, and iron.
In addition, the cost of labor has also increased significantly – by 37% on average, Nasikovsky added.
“Prices are growing and will continue to grow, because no one has canceled the laws of the market. Another question is what to do with the limited effective demand. In my opinion, the answer should be sought inside the market, not outside, relying solely on reparations or government support. The recovery and potential of the market will directly depend on the counteroffensive of the Armed Forces, or rather, on its results and timing. We can already see that psychologically, buyers and investors are gradually ready to return to the market if there is a coincidence in their expectations in the price-value-construction time axis – real dynamics,” the expert believes.
Founded in 2014, DIM Group consists of six companies covering all stages of construction.
To date, the group has commissioned 12 houses in six residential complexes. Seven residential complexes of the comfort+ and business class categories are under construction: “New Autograph, Metropolis, Park Lake City, Lucky Land, etc.
