Housing prices continue to grow.

The cost of housing in the primary market is expected to grow by 5-10% and in the secondary market by up to 7% by the end of 2021, the President of the Realtors Association Yuriy Pita says.  The cost of new apartments in the largest cities of Ukraine – Kyiv, Dnipro, Lviv, Odesa, and Kharkiv – has risen by 18-20% since the beginning of the year. In other regional centers, including Vinnytsia, Ivano-Frankivsk, and Rivne, the price on the primary

The Lease of new office space in Kyiv in the first half of this year was 60,000 square meters, 66% higher than in the first half of 2020

, reported Colliers International Ukraine. Of this new takeup, 64% went to IT companies, Oleksandr Nosachenko, the Managing Director of Colliers (Interfax-Ukraine). So far this year, five business centers, with a total area of 71,000 square meters, opened in Kyiv. In the second half, eight business centers are planned for commissioning in Kyiv, with a total area of 130,000 square meters.

Houses in suburbs within 20 km of Kyiv City have increased in price by 10-15% this year,

 says Yuriy Pitu, the President of the Realtors Association of Ukraine. Over the two-year construction cycle, prices can increase by 40-50%, he tells UNIAN. He adds: “The popularity of private estates or housing in apartment buildings depends on the location, the convenience of transport links with Kyiv, the quality of construction.”

Demand for apartments across Ukraine has returned to pre-pandemic levels,

reports Viktoria Volkovska, Director General of the Finance and Investment Association, a group of 41 construction finance funds. A poll by the group found that 77% want to buy a new apartment to improve their living situation. The rest are looking for an investment. Yuriy Zavialych, director Lviv’s Intersvit, tells Interfax-Ukraine: “In early 2021, due to a prolonged quarantine period and a drop in income, we noted shrinkage in real demand. Now the real estate market is showing a tendency

The governments heavily promoted “Mortgage at 7%” program is not having an impact on housing sales,

Volkovska said of the Association’s online survey of 41 construction finance managers. Of the group, 54% said they have not noticed any impact. Looking ahead, 38% said they hoped it will spark more sales. So far, the program has largely financed dacha sales, largely because buyers can use their primary residences as collateral. For buyers who receive their pay ‘in envelopes’, bank mortgages are impossible or too expensive.  In a new National Bank of Ukraine survey, bank managers predict an

To speed up demolition of the 1950s-era Khrushchovky,

the five-story concrete panel apartment buildings, the government plans to lower the barrier of consent of residents to demolition to 75%, from 100% today. A renovation program adopted 15 years ago has stalled, reports Gordon. Olena Shulyak, Deputy Chairman of the relevant Rada Committee, says: “You can never get 100 percent consent from all tenants for resettlement. It’s simply impossible.”

Prices of new apartments in Ukraine could increase by 25% this year,

as predicted by the National Association of Realtors. During the first half of this year, hryvnia prices increased by 15-18%. In the resale market, apartments may increase by 12% this year. Yuriy Pita,  Association President, tells UNIAN that these factors drive prices up: Ukraine’s 9.5% inflation rate; a 14% increase in construction costs for the first half of this year; and a 6% drop in construction work for January-May, compared to  last year.

Apartment prices in Kyiv could nearly double – to $2,000 per square meter — by the end of 2023,

 predicts Serhiy Pylypenko, general director of Kovalska construction and construction materials company. Driving prices up 15-20% this year will be the rising cost of building materials, he told the Confederation of Builders conference, “Post-Quarantine Development” Wednesday in Kyiv. The world runup in iron and steel prices are pushing local prices up by 30-40%, he said.

Estonian shareholders of Arricano Real Estate Plc registered in Cyprus, the management company and developer of a number of shopping and entertainment in Ukraine, have demanded $750 million in compensation for what they say is the illegal seizure of Sky Mall in Kyiv.

 “According to the press service of Arricano, after filing the notification, the parties have six months to settle the dispute before arbitration. If the parties fail to agree within the specified period, Estonian investors will apply to international investment arbitration against Ukraine” Interfax-Ukraine has reported.

Kyiv’s office vacancy rate doubled last year, to 11%,

the highest level since 2014. In turn, rents fell by 10 to 20%, reported the Kyiv Post. Faced with uncertainty in the pandemic year, CBRE Ukraine said that developers offered only 125,000 square meters of new office space — half the initial plan. This year, Cushman & Wakefield has predicted that 160,000 square meters in new office space will come on the market in Kyiv. Total current supply is 2 million square meters.