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What happens on Kyiv real estate market in May 2022

Victoria Bereshchak
real estate market columnist
Photo: Free-Photos / Pixabay

Photo: Free-Photos / Pixabay

The real estate market in the capital and nearby towns and villages is just beginning to recover. This is primarily due to two important factors. The first one is the launch, albeit in a limited mode, of real estate registries, allowing again to conclude purchase and sale transactions with the acquisition of ownership within a legal framework. The second one is a psychological factor, which is associated with the liberation of the suburbs of Kyiv from the invaders at the end of March and the elimination of the ground threat to the capital.

Let's be honest: it took the Ukrainians almost a month and a half to gradually start talking about the resumption of the real estate market. The rental market is recovering most actively, where we record an increase in activity by at least a quarter. Moreover, tenants are returning not only to Kyiv, but also to the suburbs. Vyshhorod direction, Vyshneve, Kriukivshchyna, Hatne, and both Borshchahivkas are becoming a priority for those seeking housing. Among the potential tenants are people from the hotspots of the country (currently the South and East), as well as residents of Bucha, Irpin, and Hostomel, who became homeless or cannot yet live there safely.

With the opening of the market, the number of apartments put up for sale in the secondary market has increased, however, it’s too early to speak about explosive growth. The increase in the number of ads is up to about 10%, according to my data, which is quite normal. There are ads with the note "for sale urgently", their number has also increased moderately. When it comes to prices, there are two interesting trends.

Firstly, the reluctance of apartment owners to make insane concessions, crashing the market. For example, the average cost of 1-room apartments offered for sale in Irpin or Vyshneve is $40,000-45,000 for 35-45 sq.m. The average cost per square meter in the secondary housing market is $900-1,050. These can be apartments with furniture, of course, as well as appliances, but even with this, the price does not indicate discounts from the owners.

Secondly, the willingness of a small percentage of owners to still make a small discount in order to quickly get working capital. Discounts are 5%, usually no more.

In Bucha, the owners of one-room apartments are ready to sell them for $30,000-35,000, the average cost per square meter in the secondary market is $750-900.

Considering the situation instability and the great impact of the psychological factor on the decision to sell and buy housing in the current situation, I want to once again stress the importance of a balanced approach.

I recommend that buyers be sure to check the ownership of the apartment according to the Register of Proprietary Rights to real estate, carefully verify the passport data, and also check the registration of the notary you will formalize the transaction with.

It is also important to look at those who are registered in the apartment — if there are minors or incapacitated, there must be the consent of the legal guardian to sell the housing.

If the seller is married, there must be consent, notarized, of his partner.

Considering that the primary real estate market has revived both in the suburbs and in Kyiv, one should also remember about checking documents for land, a general contractor's license, and building permits.

I advise you to get confirmation in the current conditions that the cranes are working, work has resumed on the site, and the developer has taken up the fulfillment of his obligations.

And, actually, to make sure that you are buying not just square meters because you want to fix money in concrete, but a comfortable, safe environment filled with all the necessary functions for living, where there is a place for social, household, recreational, and commercial infrastructure, at least.

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