Ukraine’s residential real estate market is in a deep crisis, it is much more profitable to rent than to buy.

The residential real estate market in Ukraine remains in a deep crisis, market factors do not support the prices declared by sellers, and renting has become a much more profitable option for those who need housing.

According to National Bank, housing prices in Ukraine have increased significantly during the year. For example, as of May in Kyiv the cost of accommodation on the primary market has risen by more than 16% compared to May 2022. In the western regions, the growth was even faster.

“However, this growth is in no way correlated with demand in the real estate market. Given the very weak demand from the home buyers, the prices primarily reflect the seller’s expectations and desire to cover the growing construction cost“, the NBU emphasizes.

Prices on the secondary market better reflect the balance of market forces. But housing is mainly sold with discounts, sellers make concessions to facilitate the transaction.