Real Estate BlogReal estateWhat to expect: How has the demand for the purchase of land and real estate changed in 2024 yearDuring the first two years after the start of the large-scale invasion, the real estate market in Ukraine experienced temporary stagnation, however, he quickly began to adapt to the current circumstances, forming new priority areas. Today on the market there are significant differences in prices depending on the region and the distance of the territory from the battle line. Very varied activity is observed in sale of land plots, residential and commercial real estate. Some investors see prospects for profitable investments in the current circumstances, viewing the current moment as an opportunity to invest in the future. At the same time, trends in the real estate market at the beginning 2024 years can already announce the gradual stabilization of this sector, therefore, experts are ready to make certain forecasts regarding its further development.
Property prices in 2024 year, the primary and secondary markets showed significant growth. This is due to several key factors, including an increase in housing volumes, injured as a result of hostilities, especially in front-line areas, as a result of which about 40 million sq. meters. As a result, the demand for housing is actively increasing due to the need to provide comfortable conditions for families with children, which contributed to the formation of a certain buyer persona. Among the main requirements for new housing are::
The most popular regions were Kyiv and the region, where it was possible to create a very high level of protection of the population, as well as Lviv, Ivano-Frankivsk, Uzhgorod and Vinnitsa. These areas are not only seeing rising prices, but also an increase in the volume of housing supply both in the primary, so on secondary market. And if you make a forecast, will the price of real estate fall, then current data indicates a continuation of the upward trend in prices due to consistently high demand and limited supply in safe regions.
The western and central regions of the country turned out to be leaders in the resumption of construction, what led to the increase in demand and, as a result, the formation of the maximum cost of housing. Reducing the total area of new buildings, put into operation, and new lines planned for construction, probably, will lead to an increase in prices due to a decrease in supply. And this trend has already been recorded in the third month 2024 y.
Here's how rates have changed in different regions:
Among cities and regions, Kyiv and the Kyiv region remain leaders in the number of new buildings, which have already been commissioned. Here is the housing price forecast 2024 expected to be stable with an upward trend, especially in prestigious areas. The average rate per m² was registered in the Pechersky district, and today reaches 99 664 UAH.
This year there has been an increase in the number of offers on the secondary housing market, which the addition demonstrates 65% advertisements in Ivano-Frankivsk region, as well as in the Volyn and Zhytomyr regions, where the increase in offers amounted to 54%. At the same time, demand remains in decline, especially for old housing stock, built using outdated technologies, which cannot compete in quality and blast resistance with newer resale homes, built using monolithic frame technology.
Among the apartments, entering the market, Comfort class apartments are becoming especially popular, which no more 10 years old, After all, they fall under the housing compensation program “is Oselya”. As a result, competition is emerging in this segment., contributing to an increase in housing costs. For example, in Kyiv to buy a one-room apartment in March 2024 it was possible for $93 168.
But the Ukrainian land market demonstrates noticeable stability and growth in both demand, and in prices. Average cost of land at the beginning 2024 increased by 13.3%, reaching the mark in 41,6 thous. UAH/ha. This was the largest price jump since the launch of the land market in the summer 2021 city. The main reason for this growth was the admission of legal entities to the purchase of land with 1 January of this year. And this event significantly expanded the circle of potential investors in the plots.
The earth suffers minimally during hostilities, what makes it attractive to investors, who see it as an opportunity for investment with the prospect of starting economic activity after the end of the war. In frontline regions the cost is significantly lower, than in the Naddnepryan region and Podil.
Total number of land purchase and sale transactions, concluded by legal entities, dynamically increases: as we see, in January they were about 10% of the total, then by February we had already reached 16%, which also exceeded the pre-war figures for the number of transactions. The forecast for real estate sales this year is expected to be very positive, especially considering, that with the end of the war, land prices may increase even more significantly.
It is quite difficult to make a forecast on the real estate market in the current conditions., since much depends on the military-political situation in the country. However, experts foresee, what's the end 2024 year, prices for primary real estate in Ukraine are expected to rise significantly due to an increase in construction costs and the launch of new projects. Cost of square meters for residential complex, which started construction even before the outbreak of hostilities still remain lower, and here are the housing prices of the fund, which is currently under construction, can grow by at least 12%. In the same time, in the western regions there is a gradual stabilization of prices for commercial real estate, and the land market continues to demonstrate dynamic development.
Read also the article on the topic: How to sell commercial real estate in Ukraine
With the beginning of a full-scale invasion 24 February 2022
in 2023 about a year 50% apartments, acquired
Commercial real estate is land, squares,
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