The volume of investments in real estate in Kyiv amounted to the equivalent of $33 million in January 2022, which is 35% less than in December 2021, but 25% higher than in January 2021, First Realty Group told Interfax-Ukraine.
“The level of capitalization was affected by the long New Year holidays. At the same time, we are seeing a trend of changing the portrait of the buyer – today the greatest demand is for objects in the medium and high price segments,” Olena Biberova, the CEO of Blagovist, said.
According to Blagovist, in January 2022, the segment up to $50,000 took a share of 9% of the total number of transactions. In this category, mainly one- and two-room apartments were purchased, most of all in Dniprovsky and Desniansky districts of the capital. Transactions with apartments accounted for the bulk of the share.
In the segment from $50,000 to $100,000, some 37% of operations in January were completed, mostly apartments in residential areas of Kyiv.
The price category from $100,000 to $250,000d became the most massive in January, it gave 41% of transactions. Here two- and three-room apartments in Solomiansky, Darnytsky, Pechersky districts of Kyiv prevail.
The price category from $250,000 in January was represented by 13% of the total volume of transactions.
Blagovist real estate agency, founded in 1993, is part of First Realty Group corporation. Currently, there are eight offices of the agency in Kyiv, with which about 500 professional real estate consultants cooperate.
The volume of investments in real estate in the capital amounted to $32.87 million in March, 2021, which is 10% more than in February 2021, Director of Blagovist Real Estate Agency (Kyiv) Olena Biberova told Interfax-Ukraine.
“In March, the market activity was high, there were a lot of applications for the selection of houses for purchase. The greatest demand is observed for apartments with renovation in new buildings. The demand for the purchase of non-residential properties is not very active yet, the business has taken a wait-and-see attitude, and a deferred demand is being formed. There is a gradual rise in prices within 5%,” she said.
According to Biberova, in March the main number of transactions fell on apartments, and about 10% of the total – for houses.
The segment up to $50,000 in March took 14% of the total number of transactions. In this category, mainly one-, two-room apartments were purchased, most of all in Dniprovsky, Darnytsky, Holosiyivsky districts of the capital. Apartment deals accounted for the bulk.
Biberova said that the most affordable option purchased in March was a one-room apartment with an area of 22 square meters worth $23,000 on Shepeleva Street (Solomiansky district). A one-room apartment with an area of 31 square meters on Berezniakivska Street (Dniprovsky district) was sold for $41,000 and on Maksymovycha Street (Holosiyivsky district) – a one-room apartment with an area of 37 square meters in a new house was sold for $50,000.
In the segment from $50,000 to $100,000, some 42% of transactions were carried out, two-, three-room apartments in Solomiansky and Darnytsky districts of Kyiv prevail. So, on Nauky Avenue (Holosiyivsky district), a one-room apartment with an area of 25 square meters was sold for $52,000; on Naberezhno-Rybalska Street (Podilsky district) – a one-room apartment with an area of 50 square meters was sold for $75,000; and on Antonovycha Street (Holosiyivsky district) – a three-room apartment with an area of 72 square meters was sold for $100,000.
The price category from $250,000 in March is represented by 5% of the total volume of transactions. So, on Hrushevskoho Street (Pechersky District) an apartment with an area of 87 square meters was bought for $254,000, and an apartment with an area of 106 square meters on John McCain Street (Pechersky district) was bought for $355,000.
“The most expensive object sold in March is an apartment with an area of 203 square meters on Instytutska Street [Pechersky District] worth $1 million,” Biberova said.
Blagovist Real Estate Agency, part of the First Realty Group corporation, was established in 1993. Today, there are eight agency offices in Kyiv, with which about 500 professional real estate consultants cooperate.
Prices for square meters in projects under construction for the year increased by 10-12% in hryvnias, CEO and Managing Partner of the development company DC Evolution Andriy Ryzhykov has told Interfax-Ukraine.
“A sharp rise in prices is not observed – there is a normal, projected growth of 10-12% in hryvnias and a little less in U.S. dollars. Depending on the quality of projects and the phase of implementation, prices in some objects have grown by 20-25%,” Ryzhykov said.
The expert named several reasons for the increase.
“Firstly, inflation, no one has canceled it. Secondly, people have money and they are ready to spend it. Oddly enough, the coronavirus year has become super profitable for many industries. Thirdly, the cost has increased greatly, accordingly, this needs to be compensated for by higher prices,” Ryzhykov said.
The expert also named the buyers’ increasing requirements for future housing.
“People, living in COVID-19 conditions, wanted a different quality of life, so projects that rely on environmental friendliness, nature, high-quality infrastructure and safe yards are ready to give installments, and do not complain about the flow of money, so they have the opportunity to raise the price,” Ryzhykov said.
The expert denied the assumption that a “bubble is inflating” in the domestic market of residential real estate.
“A bubble is an abundance of insanely cheap money that is thoughtlessly distributed, which leads to an unjustified rise in prices. In our country, growth is quite economically justified,” Ryzhykov said.
He said that one should not be afraid that the investment in the facilities under construction will not pay off.
“In most high-quality projects, buying an apartment at an early phase and reselling it at 30% more expensive before commissioning, one can earn about 15% per annum, and this is a completely normal investment,” Ryzhykov said.
Ukraine will take part in the traditional four-day format of the international real estate exhibition MIPIM in Cannes on March 15-18 in 2022, but will not present its stand at the MIPIM September Edition event this autumn. “After discussion with the partners, we came to the conclusion that collective participation with a stand and planned promotions for Ukraine is advisable within the framework of the usual four-day program. After several reschedules in 2020-2021, we decided to focus on preparing for MIPIM 2022,” Invest in Projects agency said, citing initiator and co-organizer of the Ukrainian delegation to MIPIM Anna Nestulia.
According to her, the autumn event for the exhibition partners will be held in a hybrid format.
As reported, the MIPIM exhibition was supposed to take place on March 10-13, 2020, however, the organizers decided to change the date due to the growing coronavirus epidemic to March 15-18, 2022.
Ukraine at MIPIM 2020 planned to present for the first time, in addition to Kyiv, a separate stand of regional projects.
The participants from the country are UDP, Altis Holding, DELTA Ukraine, Mandarin Plaza Group, Invest in Projects, TK Property Management, Intergal Bud, Dragon Capital, Midland Development, Toronto-Kyiv, and Promprylad.Renovation. A separate stand was prepared by City One Development.
Traditionally, the Ukrainian delegation at MIPIM is supported by the Ukrainian Embassy in France and the top officials of the city and state institutions.
MIPIM is the leading European investment exhibition for all sectors of the international real estate market, which annually brings together more than 20,000 key players in the real estate market. Government representatives, developers, consultants and architects also participate in MIPIM.
The volume of investments in real estate in Kyiv amounted to the equivalent of $30.7 million in May 2021, which is 12% more than in April of the same year, Director of Blagovist Real Estate Agency (Kyiv) Olena Biberova told Interfax-Ukraine.
“The market for the sale and purchase of real estate in Kyiv continues to demonstrate activity. Supply and demand are balanced. At the same time, the new supply that appears on the market is more expensive [by 10-15%] than similar properties that were put up for sale earlier,” she said.
According to Biberova, the most affordable option purchased in May was a one-room apartment of 28 square meters on Novhorodska Street (Solomiansky district), which was bought for $25,000. The most expensive property sold in May was a house with an area of 610 square meters in Lisnyky village (Kyiv-Sviatoshynsky district) purchased for $1 million.
According to the real estate agency, the segment up to $50,000 in May took 14% of the total number of transactions. These were mainly deals with one-, two-room apartments. For example, a one-room apartment of 32 square meters on Bastionna Street (Pechersky district) was bought for $45,000 and a one-room apartment with an area of 41 square meters on Radchenka Street (Solomiansky district) – for $50,000. House with an area of 60 square meters and with a land plot of 21 acres in Vytachiv village (Obukhiv district) was bought for $42,000.
In the segment from $50,000 to $100,000, some 45% of transactions were carried out. It is dominated by two, three-room apartments in Solomiansky, Podilsky, Darnytsky districts of Kyiv in new buildings (residential complexes Quartet, Fayna Town, etc.).
On Hnata Yury Street (Sviatoshynsky district) a two-room apartment with an area of 53 square meters was bought for $52,000, on Academician Williams Street (Holosiyivsky district, residential complex Liko-Hrad) a one-room apartment with an area of 46 square meters was bought for $70,000; and on Kudriashova Street (Solomiansky district) a one-room apartment with an area of 46 square meters was bought for $100,000.
According to Biberova, the price category from $100,000 to $250,000 in May was 35%. The favorites in this category were objects in new houses in Holosiyivsky and Pechersky districts. For example, a one-room apartment with an area of 45 square meters was sold for $102,000 on Bulvarno-Kudriavska Street (Shevchenkivsky district, residential complex Yaroslaviv Hrad), a two-room apartment with an area of 70 square meters on Yevhena Konovaltsia Street (Pechersky district) was sold for $182,000, and a three-room apartment with an area of 110 square meters on Yevhena Konovaltsia Street (Pechersky district) was sold for $245,000. House with an area of 250 square meters in Hatne village (Kyiv-Sviatoshynsky district) was bought for $160,000.
The price category from $250,000 in May is represented by 6% of the total volume of transactions. On Panasa Myrnoho Street (Pechersky district) a five-room apartment with an area of 180 square meters was bought for $262,000. A four-room apartment with an area of 190 square meters on Heroes of Stalingrad Street (Obolonsky district) was bought for $310,000. Non-residential premises with an area of 84 square meters on Mykhaila Drahomyrova Street (Pechersky district) were bought for $775,000.
Blagovist Real Estate Agency, part of the First Realty Group corporation, was established in 1993.
Today, there are eight agency offices in Kyiv, with which about 500 professional real estate consultants cooperate.
The total supply of Kyiv’s office real estate market in 2020 increased by 7.7% compared to the previous year and reached 2.147 million square meters, and this year, 200,000 square meters have been announced for commissioning, according to the press service of Colliers Ukraine. As noted in the report “Offices. 2020,” in early 2020, developers announced the commissioning of more than 230,000 square meters in Kyiv of office space during the year.
“Development activity, for the most part, did not stop despite the pandemic. As in previous years, some projects were not commissioned on time and postponed to subsequent periods. The actual new supply amounted to 155,000 square meters,” the report said.
At the same time, it is noted that the volume of absorption amounted to 60,000 square meters.
Grade A offices were replenished with a total of 28,300 square meters: business center M8 (8 Moskovska Street, 11,000 square meters), business center Grand (98 Velyka Vasylkivska Street, 8,800 square meters) and business center Hillfort (12 Mykhailivska Street, 8,500 square meters). The new supply in Grade B offices amounted to 126,600 square meters, the largest of them – business center Platform (3 Krolenkivska Street, 19,800 square meters) and business center Avenue 53 (53 Prospect Peremohy, 16,700 square meters).
According to developers, new business centers with a combined lease area approximately 200,000 square meters are expected to be commissioned in 2021. In total, projects with a total area of approximately 350,000 square meters are currently under construction with the prospect of commissioning in a few years, according to developers.
Colliers Ukraine in the report cites some of the objects that are being prepared for opening in 2021: Grade A offices are represented by the first phase of business center MAG.NETT (137-139 Velyka Vasylkivska Street, 44,000 square meters), and Grade B offices – business center LUWR (2/10 Illienka Street, 27,000 square meters), business center at 23 Olenivska Street (21,000 square meters), and business center UNIT.City – B15 (3 Dorohozhytska Street, 7,500 square meters).
“Due to the need for social distancing, employee seating density in the workspace will decrease. As a consequence, emphasis on the formation of new office spaces will shift towards an increase. We can predict that the office segment will continue to develop. In all probability, office space will not be reduced but transformed,” Managing Director of Colliers Ukraine Oleksandr Nosachenko said.
Colliers International is a leading diversified professional services provider, including investment management in commercial real estate. The company’s offices are represented in 67 countries of the world.
