According to the LUN portal, in 2022, the number of investment transactions in the primary housing market decreased by approximately 10 times, if compared with the indicators of the previous year. Accordingly, prices also fell. However, now the demand is leveling off, and with it – the cost per square meter.
Analysts say that before the full-scale invasion of Ukraine, sales were opened in 1,700 residential complexes. As of 2023, the realization of square meters has recovered in 80% of them. The largest share of stopped objects is in the frontline regions. Instead, the center and west of the country are being actively developed, so buyers and investors have plenty to choose from, 24 Kanal writes.
Whether there is a demand for new buildings, which are implemented in wartime, we will find out using the example of the joint project of the RIEL Real Estate Corporation and Bosphorus Development – Maxima Residence.
Demand for primary housing is recovering: how it affects prices
According to LUN analysts, the demand for primary housing has recovered to an average of 50%. In Odesa and Kyiv, this figure is 40%. On the other hand, in Lviv – 70%. And in Ivano-Frankivsk, demand has completely returned to pre-war times.
At the same time, the price per square meter for the most popular housing classes is increasing. For example, the Kyiv «Comfort» rose in price from 33,900 hryvnias in September 2022 to 38,000 hryvnias. The most noticeable decline in the price of «business».
In Lviv, there is a gradual increase in the price of a square meter in all classes of housing. At the same time, experts note that the price will not decrease in the near future.
It is likely that active investments in housing will begin after the victory. Moreover, there are funds for this. Thus, according to Ukraine Economic Outlook, Ukrainians have more than 60 billion dollars in cash. And the investment potential for buying real estate after our victory will be 25 billion dollars in the banking system and at least 60 billion dollars outside it. This makes it possible to make positive predictions for the future.
Foreign developers work on the Ukrainian market
The fact that the market is stabilizing is also evidenced by the presence of foreign players on it. A few months before the full-scale invasion, the Turkish developer Bosphorus Development started the implementation of its first object in Ukraine. They decided to implement the project together with the Real Estate Corporation RIEL.
The war slightly adjusted the plans, but did not stop the work. Sales started in June this year. And now approximately 120 apartments are available for investors, which are located in the first and second sections.
«There are sales, and this is quite logical. Because, firstly, it is a very good location for living for those who value urban comfort and infrastructure. Secondly, we are an international company and we build according to international standards. The Maxima Residence residential complex will be of high quality, which future residents will greatly appreciate», said the founder and chairman of the supervisory board of Bosphorus Development Sachaklioglu Mehmet Vahit.
He adds that the main buyers of housing in the Maxima Residence residential complex are people who value comfort and therefore choose to live in the central part of the city. There are also many investors who understand that it is necessary to invest in real estate now.
«The one who enters the market first gets the biggest benefit. Decisions about large investments require a careful assessment of risks and security guarantees – both in wartime and in postwar times, so a potential investor checks and weighs everything in detail. We and our partner have good reputations, construction work is intensively underway on the site, so we meet the requirements of the most demanding investor», adds Sachaklioglu Mehmet Vahit.
According to him, Ukraine is a country with a promising future. And the construction of the Maxima Residence residential complex is necessary to show other foreign companies and investors that it is now profitable to invest here. Moreover, after the victory, the country will radically change, and construction will be the main locomotive of development.
official website of the Maxima Residence project.