Developers in Kyiv prefer to build business-class housing, while budget residential complexes are built in the suburbs.

During the last three years of war, construction costs in Kyiv have increased by 16% annually, according to average annual indicators of the indirect cost of housing construction in Ukraine.

It is noted that the increase in the cost of construction work is due to changes in the cost of building materials, wages, and the introduction of modern technologies including autonomous and advanced engineering systems. Moreover, the real cost of housing construction is even higher. After all, it is necessary to consider such components as the cost of acquiring a land plot (+8-15%), advertising and marketing costs, the cost of attracting financial resources, and the costs of organizing sales operations. These add another 20-25% to the cost.

It is noted that there is a natural segmentation in Kyiv’s real estate market. The supply of inexpensive housing is moving to the suburbs, stimulating an increase in higher priced residential complexes in Kyiv. As a result, apartment prices in Kyiv are increasing and the average price per square meter stands at $1,300. In contrast, the average price per square meter in Kyiv region increased to $910 during the last three years.