By KYIV. Dec 28 (Interfax-Ukraine) – The Ukrainian real estate market is unbalanced, against the backdrop of low demand and a reduction in new supply, announced prices from developers are growing, while rental prices are falling, follows from the National Bank of Ukraine (NBU) report on financial stability for December 2022.
It notes that the demand for housing remains weak and unstable: the interest of a few buyers depends on the intensity of shelling of settlements and fell again in the fourth quarter.
The existing demand is focused primarily on ready-made housing for living, almost at a zero level speculative for the purpose of further resale or rental.
The number of new buildings on which work is underway is slowly growing after an almost complete halt in the first months of the war. In general, in the country, work has resumed on more than two-thirds of the objects, mainly in residential complexes at the final stage of construction. At other facilities, the resumption of work occurred only on paper.
According to the State Statistics Service of Ukraine, construction of 2.8 million sq m of multi-apartment housing is completed. As noted in the report, this is half the record figure for the same period in 2021 and only a quarter less than the average for the previous five years.
The situation is much worse with the start of new projects. In the nine months of this year, developers have received permission to build half the amount of multi-apartment housing than the average for the same period of the previous four years. However, obtaining a permit does not indicate the start of construction – the actual start of construction work may be delayed for a long period.
The report also recalls that, according to the Russia Will Pay project, from the beginning of the full-scale war until November, more than 16,000 apartment buildings and almost 127,000 private houses were destroyed or damaged.
