In Ukraine in January-March 2023, 1.942 million square meters of housing was commissioned, said the State Statistics Service (Derzhstat).
According to the report, the total is 24905 apartments, of which 4922 in single-family houses, 19983 – in apartment buildings.
Most of the housing is commissioned in the Vinnitsa region – 5669 apartments. In the Kiev region 3621 apartments were added to the housing fund, 2312 in the Kiev region, 1847 in the Lviv region, 1580 in the Ivano-Frankivsk region, 1166 in the Odessa region, 1126 in the Dnipropetrovsk region, 1052 in the Volynsk region, Cherkassy – 891, Kharkiv – 888, Transcarpathian – 795, Ternopil – 703, Rivne – 683, Poltava – 637, Khmelnytsky – 563, Chernivtsi – 530, Sumy – 333, Zhytomyr – 231, Chernihiv – 132.
Less than a hundred new apartments were commissioned in the regions of Mykolaiv (79), Kirovograd (50), Zaporizhzhia (12) and even in Donetsk (5). Not a single new dwelling was commissioned in the first quarter of 2023 in Lugansk and Kherson regions.
Data for the first quarter of 2022 Gosstat did not publish. At the end of 2022, the commissioning of housing in Ukraine decreased by 37.8% compared to 2021 – up to 7 million 110.2 thousand square meters. m.
More than 35 thousand apartments were commissioned in Ukraine in 2022, most of them – in Kiev and the region, according to the real estate portal LUN.
According to its data, about 13.2 thousand apartments were commissioned in Kiev, 7.2 thousand – in the Kiev region. Lviv is also among the leaders – 3.8 thousand, Odessa – 2.3 thousand, Ivano-Frankivsk – 1.6 thousand apartments.
Most queues of new buildings which received a certificate of commissioning were recorded in the Kiev region (66), Kiev (40) and Lviv (32). Over ten queues are also commissioned in Ivano-Frankivsk (17), Odessa (12), Ternopil, Lutsk and Khmelnytsky (10).
At the same time, the number of objects at the start of construction in 2022 was halved: as for the third quarter, construction began on 68 thousand new apartments, according to the portal.
According to LUN, interest in buying a home has decreased by half compared to the prewar beginning of the year. Thus, in Kiev the figure is 45% of February, in Lviv – 54%, Odessa – 43%, Uzhgorod – 68%, Dnipro – 57%.
At the same time the cost of housing has increased despite the decline in demand. According to the portal, the cost per square meter in the most popular class of housing – “comfort” – in the capital increased by 37% to 37 thousand UAH, in Lviv – by 60%, to 38.3 ths. In Lviv – 60% increased up to 38.3 thousand UAH, in Uzhgorod – 57% up to 34.2 thousand UAH, in Ivano-Frankivsk – 63% up to 222 thousand UAH, in Odessa – 56% up to 35.9 thousand UAH, in Dnipro – 44% up to 33.1 thousand UAH, in Poltava – 37% up to 30 thousand UAH.
By the end of the year the cost of the cheapest one-bedroom apartment in Kiev increased by 66% since the beginning of the year and is 2.3 million UAH, 2-bedroom – “plus” 70%, 3.2 million UAH, the price of 3-bedroom increased by 76% to 4.4 million UAH.
LUN estimated that the number of new buildings available for sale in Kiev is 83% (182 new buildings by the end of the year) from the prewar beginning of the year, in Lviv – 103% (121 new buildings), in Odessa – 72% (79 objects), in Dnipro – 63% (42), Ivano-Frankovsk – 98% (70), in Khmelnytsky – 77% (56), in Ternopil – 132% (69).
“Due to the war and losses in the economy, housing has become less affordable, and the need for it – much more acute. It can already be argued that more than 1 million families in Ukraine need new housing. It is impossible to satisfy this demand with the apartments that have already been built, because so many apartments are not on sale, and that is why Ukraine is waiting for the Big Housing Construction phase. The state understands this and has plans to expand the scale of preferential mortgages, but this will still not be enough to cover the needs of IDPs, so we expect further steps from the authorities”, – summarized Denis Sudilkovsky, marketing director of LUN.
LUN, through its international brand Korter, has sold more than 200 apartments abroad, LUN development director Andriy Mima told Interfax-Ukraine.
“During the nine months of this year, we sold more than 200 apartments abroad, most of them in Georgia. In September, we unexpectedly received our first income in the UAE: a buyer bought an apartment from a developer through our website https://Korter.ae, and we received this is a commission,” Mima said.
He recalled that Korter is an international brand of LUN, with a similar product, a catalog of new buildings. The service launched a few years ago in several countries in Europe, Asia and the Middle East. At the same time, Korter’s business processes are slightly different from the parent company.
“In some countries, developers are not used to paying for marketing, so our business model “like in Ukraine” did not work. But they are happy to pay success-fee in the form of a commission. We had to restructure business processes to bring buyers from the site directly to sales departments,” Mima explained.
According to Mima, the user contacts the support service, Korter agents help him complete the transaction. For example, if necessary, the client is met at the airport and brought to the sales department.
He added that at present, the company’s international revenue exceeded its domestic one.
The State Fund for Support of Youth Housing Construction announced the purchase of housing for further leasing to internally displaced persons (IDPs) from large families whose housing was destroyed as a result of Russian aggression.
As reported in the release, a total of 100 apartments are being purchased: in Kyiv and Chernihiv regions, 35 each, in Sumy 20 and Zhytomyr 10.
Housing, renovated and furnished, can be purchased from individuals and legal entities-owners of such housing.
The minimum total area of housing is 31.5 square meters, maximum – 94.5 square meters.
As reported, by Resolution of the Cabinet of Ministers No. 495 of April 29, 2022, the procedure for the buyout, construction of housing for the purpose of transferring to internally displaced persons for temporary residence was approved.
The State Youth Housing Fund can purchase ready-made housing, provided that the cost of acquiring 1 square meter of the total area of housing (taking into account all mandatory payments paid by the buyer when purchasing housing) does not exceed the marginal cost.
The marginal cost is calculated based on the indirect cost of housing construction in the regions of Ukraine determined by the Ministry of Regional Development and increased for: cities – regional centers, cities of regional significance with a population of more than 300,000 people and settlements located in areas adjacent to the borders of cities – regional centers – 1.75 times; other settlements – 1.5 times.
For example, in February 2022, the Ministry of Regional Development approved an indirect cost for Zakarpattia region of UAH 13,892/square meter, and for Kyiv – UHA 18,704/square meter. This means that the marginal cost of housing ready for occupancy, which can be paid by the state or communities, in Uzhgorod is UAH 24,311/square meter, in Kyiv it is UAH 32,732/square meter.
The median price of apartments in the secondary market of Kyiv was $1,308 per square meter in July 2021, which is 13.7% higher than in the same period in 2020, the press service of the address.ua portal has told Interfax-Ukraine.
“In the secondary residential real estate market, a stable but moderate trend towards price increases remains – the median price increased by 1% in July 2021 compared to June 2021 and by 13.7% compared to July 2020,” City Development Solutions Director Roman Herasymchuk said.
At the same time, according to him, the median price of one-room apartments presented in the database of the address.ua portal increased to $1,400 per square meter (by 1.2% per month and by 17.7% per year), two-room apartments – to $1,301 per square meter (0.6% and 18.8%), three-room apartments – to $1,181 per square meter (less than 1% compared to June and an increase of 7.7% per year).
“The continuing rise in prices is due to objective long-term factors such as stable demand, good indicators of profitability of investments in real estate and a systematic rise in the cost of construction, allows the secondary market to compete with the primary market, the volume of finished housing on which is not sufficient to meet the needs of the population in square meters,” Herasymchuk said.
According to him, in July, apartments in the price range of up to $30,000 were in high demand – 33% of requests to the database of the address.ua portal. The interest for housing in the range from $50,000 to $70,000 was in 29% of inquiries, from $30,000 to $50,000 in 21%, and over $70,000 in 17%.
Some 42% of inquiries to the database of the address.ua portal concerned one-room apartments, 37% of portal users were looking for two-room apartments, and 19% for three-room apartments.
At the same time, the greatest demand (38%) was for the category of apartments with an area of 50-80 square meters, 37% of requests were for apartments with an area of 35-50 square meters, 20% were interested in apartments up to 35 square meters. Housing over 80 square meters were interesting only for 5%.
“In the coming months, we can expect an increase in market segmentation – the main demand is for new housing built in the 2010s, which increases the discrepancy in prices between the old and new housing stock,” Herasymchuk said.
According to the expert, the main factor holding back the price growth is the pool of less liquid apartments in the old housing stock, which accounts for more than half of the current supply.
Herasymchuk predicts that the trend towards price increases in the coming months will continue.
The results of the study of the secondary real estate market in Kyiv for July 2021 are based on the analysis of ads posted on the real estate search portal address.ua, as well as user activity (479,519 visits in July 2021).
Fomich LLC (Ivano-Frankivsk) plans to complete the construction of the Fomich Apartments complex in Bukovel (13 Urochysche Vyshnia [Cherry Stow], Polianytsia village, Ivano-Frankivsk region) by the end of January 2022.
As indicated in the presentation of the complex on the company’s website, the total area of the complex will be 4,800 square meters, of which 236 square meters are occupied by a bar and a swimming pool, and 430 square meters by recreation area. The project includes 54 rooms and parking for 58 cars.
According to Fomich Group, the cost per 1 square meter in the project will amount to $2,000. The company offers investors the conclusion of a management agreement for a period of five years.
The company is also completing the implementation of the Villas Fomich cottage complex project. According to the website, the complex is at the stage of commissioning and will be available for booking from February 1.
The cost of one turnkey cottage in the Villas Fomich project is $295,000, while the company guarantees a return on investment in seven years.
The Fomich Group also owns and manages the F&B Spa Resort.
Fomich LLC was registered in 2012. According to the Unified State Register, the founders of the company with a charter capital of UAH 1.5 million are Vasyl Yatsenyuk and Tetiana Krasiy.
