Developers are abandoning new luxury housing projects in Ukraine: Sales have slumped, and prices in Kyiv have dropped by 30-50%.

Sales of premium real estate in Ukraine have decreased by half. Prices for luxury apartments in Kyiv have also declined by 30-50%, while construction costs have risen, said Artur Mkhitaryan, CEO of the Taryan Group development company.

While speaking with regard to these market trends, he recalled that at the beginning of the Russian invasion sales in the most expensive market segment came to a halt, but after six months, they started to slowly recover. However, even now, they have not returned to pre-war levels. As the expert further noted, despite the average cost per square meter rising in the economy and business segments, prices in the premium segment have dropped by 30-50% compared to 2021. For example, prior to the war the cost on the secondary market could reach $7,000 per square meter, and now the average price is $3,500-4,000.

Due to the decrease in demand and prices in the elite segment, the margin has declined “so much that the launch of new projects is not yet interesting,” Mkhitaryan noted.