Lesser demand for new buildings: how apartment prices are changing in Ukraine

Amid Russia's full-scale invasion of Ukraine, the number of new buildings has halved. It is forecast that by 2025, the market will decline to 30% of its 2021 level. At the same time, in some regions, especially in the western regions of Ukraine, construction has intensified. This imbalance in the market has also affected prices.

This was reported by OBOZ.UA with reference to a comment by Marianna Bihunets, Sales Director of Gazda construction company.

"Talks about the shortage of new housing have been going on for almost two years. However, these are only temporary difficulties," she said.

According to the expert, active construction is currently underway at only a third of the planned residential projects. Most of them are located in conditionally safe regions of the country.

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For example, in the Transcarpathian region, the situation is fundamentally different from the general situation. Here, competition among developers is growing every month.

"In the second half of the year, 10 to 15 development companies from other regions are planning to enter Transcarpathia. A similar situation is observed in Lviv and Ivano-Frankivsk: in 2024, twice as many new buildings were announced in these cities as in the 'pre-war' 2021," the expert said.

As a result of this trend, over the past two years, prices for apartments in new buildings in Zakarpattia, Ivano-Frankivsk, Lviv, and Chernivtsi have almost equaled those in Kyiv, Odesa, Dnipro, and Kharkiv, where housing prices were previously higher. Today the price gap at the start of construction in different regions for similar properties does not exceed 5-10%. Before the full-scale aggression, this difference could reach 40%.

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