Business news from Ukraine

Demand for housing rental in Kyiv in Sept exceeds pre-war level

The number of applicants for apartment rental in Kyiv in September for the first time during the full-scale war exceeded pre-war figures, the press service of the LUN new buildings portal reported.
According to data from the apartment rental app Bird, as of September 20, the number of applicants for apartments rental has reached 120% of the pre-war level. A month ago, in mid-August, demand reached the February level, and in July it was 90%.
According to the press service of LUN, in September, housing prices halted growth compared to the previous month. The median price for renting a one-room apartment in Kyiv fixed at UAH 9,000 in September, which is the same as in August. In July, the figure was UAH 8,000, while at the end of February, the median price for renting one-room apartments was UAH 13,000 per month.
The median price for renting two-room apartments in September slightly decreased compared to August – from UAH 15,000 to UAH 14,000. In July this figure was UAH 12,500, before the war – UAH 21,600.
At the same time, the median price for renting three-room apartments decreased from UAH 24,900 in August to UAH 20,200 in September, which is the same as in July. Until February 24, such housing cost UAH 46,100.

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Vitali Klitschko asked Germany for generators and heating points for Kyiv

Kyiv Mayor Vitaliy Klitschko appealed to the Federal Minister of Economic Cooperation and Development of Germany to transfer generators and mobile heating units to Kyiv as an aid, according to the website of the mayor of the Ukrainian capital on Wednesday.
“I am talking with German partners about helping the Ukrainian capital and the people of Kiev to get through this heating season, which will be very difficult under martial law. In particular, I appealed to the Federal Minister for Economic Cooperation and Development of Germany to provide Kyiv with generators and mobile heating points as assistance,” wrote Klitschko in the Telegram channel.
The mayor of Kyiv also said that the Ukrainian capital will acquire mobile mobile boilers as a backup source of heat supply in case of emergency during the heating season. They will provide heat to hospitals, kindergartens, schools, and will work at heating points that the city will deploy.

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The Minister of Foreign Affairs of Germany arrived in Kyiv

German Foreign Minister Annalena Berbock has arrived in Kyiv for the second time since the start of Russia’s full-scale invasion of Ukraine, reports the German publication Spiegel.
According to the magazine, with the trip, Burbock wanted to show “that we will continue to support Ukraine for as long as necessary – with the supply of weapons, humanitarian and financial support,” she said on Saturday morning when she arrived.
“Today I went to Kyiv to show that they (Ukrainians – IF-U) can continue to rely on us,” the Foreign Minister stressed.
In Kyiv, Burbock intends to hold talks, in particular, with Foreign Minister Dmitry Kuleba. The rest of the program was kept secret for security reasons.

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Prime Minister of Poland travels to Kyiv – Polish media

Polish Prime Minister Mateusz Morawiecki has left for Kyiv, where he will hold several meetings to discuss topics such as the geopolitical situation, the energy market and security, government spokesman Piotr Muller told private TV channel Polsat on Friday.
At the same time, he noted that no significant or sudden changes would be announced during the visit, but this visit is a political signal to the Kremlin, reminiscent of Poland’s position in connection with the Russian aggression against Ukraine.
“We will support Ukraine in this very difficult situation, because we believe that Russia is violating all possible international standards. In addition, protecting Ukraine is also protecting our security,” Muller said.

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Number of active construction sites in Kyiv continues to grow – expert

The number of active construction sites in Kyiv increased by 17 in August to 173, M4U founder Volodymyr Danilenko told Interfax-Ukraine.
“The number of active construction sites in Kyiv continues to grow. In August, another 17 construction sites resumed work, the total number of active sites reached 173. However, this is still 22% less than before the war,” he said.
According to M4U, most of the new buildings (29 residential complexes) are concentrated in the Goloseevsky district of Kyiv, the second largest is the Pechersky district, where 24 objects are currently being built. The fewest active construction projects are in the Dniprovskyi district – 10.
The average cost per square meter in objects under construction in August amounted to 59,434 UAH. This is 9.1% more than in July and 32.1% more than in February 2022.
As noted in the study, average prices for comfort class (up to UAH 43,472/sq.m.) and elite class (up to UAH 142,071/sq.m.) increased by 7.9%. A square meter in business-class new buildings has risen in price by 6.3% – up to UAH 75,885. The rise in prices in the economy class amounted to only 2.8%, such property in August cost an average of 31,368 UAH per sq. m. m.
“Until February, we observed an increase in prices due to a reduction in supply in the market against the backdrop of stable demand. Now, when demand has decreased by 90%, prices continue to rise due to the shortage of building materials, the increase in their cost, the need to find new suppliers, and also because of the change in the dollar exchange rate, to which the cost of most developers is pegged. This is a completely natural process that will continue over the next months,” Danilenko said.
Traditionally, expensive objects are concentrated in the Pechersky district, where the average cost per square meter in August amounted to 117,889 UAH. The cheapest square meter is in the Darnytskyi district – an average of 33,799 UAH.
Established in February 2020, the Ukrainian proptech company M4U specializes in the development and implementation of complex intelligent solutions in the field of real estate development.

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Demand for purchase of housing in Kyiv increased by 45%

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.

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