Currently, price conditions in the real estate market are more favorable than before the full-scale invasion, but due to war risks, Ukrainians are not ready to invest in housing, the national bank said in its December Financial Stability Report.
The NBU claims that buying a home has become more profitable than long-term leasing and purchasing 70 square meters of housing in Kyiv for a family will cost, on average, the equivalent of its 10-year income.
In addition, the cost of a square meter on the secondary market in dollar terms in the capital and western Ukraine has mostly remained stable, and in other regions, it is even decreasing. As well, market conditions are being determined by the buyer: Actual sale prices are still 25% lower than the average advertised price. However, demand for housing has not yet returned to pre-war levels, although it is slowly recovering.
At the same time, the cost of housing in the primary market is increasing, and the construction of new housing is proceeding rather slowly. Therefore, the risk of a shortage of new, high-quality housing remains.