Analysts estimate the negative impact on housing demand due to the war at $20B. In the coming years, prices for apartments in Ukraine will continue to rise – both in the primary and secondary real estate markets.
UTG analysts predict this as a result of increased construction costs and high demand. So, looking at construction costs, as of January 2022 an average square meter cost ₴16,000 ($420), in October 2023 – ₴21,000 ($550) – an increase of 20%. The upward trend will raise prices in the secondary market as well.
Secondly, because of the war, people are refraining from expensive purchases. But with the end of the war, all the accumulated savings will return to the market.
Thirdly, social indicators contribute to market activation. In cities where the real estate market is actively developing, the age groups that are the key housing consumers – people aged 25 to 50 – are growing.
That is why UTG believes the upward trend in Ukrainian housing demand will continue in the next ten years.