The Real Estate Market in Ukraine’s Frontline Regions Has Nearly Stopped
In Ukraine’s frontline regions, the real estate market is practically non-functional: new housing is not being built, and prices for apartments in the secondary market have decreased by 30-50% compared to the pre-war period. The main reasons for this decline are low demand and high safety risks for the population.
This is reported by AgroReview
Situation in Frontline Cities: Secondary Housing and Rental Market
In cities located near the front line, such as Kharkiv, Sumy, Zaporizhzhia, and Kherson, the primary real estate market is virtually absent. Due to regular shelling and the threat of destruction, developers are not investing in new projects, and the supply is limited to secondary housing only.
“No new buildings are being constructed here, and the market is limited to secondary real estate,” explains real estate market expert Yuriy Pita.
The decline in demand is related to the outflow of residents to safer regions, while those who remain or come for business trips rent housing temporarily. Rental prices in such cities have also fallen, with the main tenants being people who are in the region for a short time.
Revival of the Market in Western Ukraine and the Capital
In contrast to the frontline regions, active construction of new housing is observed in Lviv, Ivano-Frankivsk, Uzhhorod, and Transcarpathia, and the market shows stability. A significant number of internally displaced persons has contributed to a substantial increase in demand for buying and renting apartments. Compared to the pre-war period, rental prices in the western regions have risen by 20% due to the increase in the number of tenants.
In Kyiv, although the pace of construction of new residential complexes is lower than in the western regions, the demand for housing remains high. Apartments with renovations in the secondary market have become particularly sought after, as most buyers prefer move-in ready options, not wanting to spend time and money on furnishing. Over the past year, rental prices in the capital have increased by 15-20%, which has not diminished the interest from internally displaced persons and professionals working in Kyiv.