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Prices for apartments in Ukraine: construction began to increase, but the cost went up by 20%

The cost of apartments: why prices have increased by 20%. Photo: pixabay

The cost of apartments: why prices have increased by 20%. Photo: pixabay

The cost per square meter in new buildings in Ukraine in January—June 2021 increased by 10—20%. The price depends on the degree of construction project readiness and the region, Viktoria Volkovska, the General Director of the Financial and Investment Management Association (FIMA), said in a comment to the Interfax-Ukraine agency.

"We have analyzed dozens of housing projects throughout Ukraine that work with construction financing funds. The overwhelming majority indicates an increase in the cost per square meter. At the same time, we have a situation where the prime cost of housing is growing faster than the price," Volkovska said.

According to FIMA, 76.9% of respondents reported an increase in the cost per square meter by 10—20%, an increase of more than 20%—7.7%. At the same time, 15.4% of respondents noted that the cost of housing has not changed significantly.

Meanwhile, 10% of respondents reported a decrease in the volume of construction work, 40%—on the contrary, about an increase of more than 20%, 10%—about a 20% increase, and 20% stated about a 10% increase in construction volumes.

In addition, 76.9% of the respondents noted that the impact of inflation on the construction prime cost was stronger than the stable exchange rate of the national currency. In particular, 7.7% indicated that the rise in the price of building materials was the reason for the prime cost increase and, accordingly, the cost per square meter.

The FIMA study is based on an online survey of Construction Financing Fund managers (CFFs) conducted following the results of the first half of 2021.

Context. Over the year, prices for renting apartments in Kyiv increased by an average of 21%. Three-room apartments have risen in price most of all—by 27%.

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