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Khrushchev-era apartment rental to go up sharply in 2022: Prices in Kyiv and regions

By the end of the heating season, rental rates for apartments in Kyiv and other cities of Ukraine will remain unchanged. An active rise in rental prices in the first half of 2022 will begin only in March.

The lull in prices in the rental segment at the beginning of the year will be caused by a seasonal factor. As Olena Gaidamakha, Chair of the Kyiv city branch of the Association of Real Estate Specialists of Ukraine (ARESU), notes in a comment to The Page, a period of growth in rental prices is not possible until late March—early April, and it will be related to a significant increase in demand.

Quote"Until April, until the start of the new business season, the rental price will remain more or less stable. During this period, insignificant price fluctuations—up to 1—2%—are possible only for 10—15% of rented housing," Olena Gaidamakha says.

So the rental price during April—June may increase up to 10%—this will be caused by the activity of the potential tenants.

Quote"The end of the heating season will be a catalyst for the intensification of the potential tenants. The traditional seasonal factor should be added to this: it is from the second half of March that migration processes are significantly intensifying. However, a possible rise in the rental cost will occur without sharp hikes—in the Q2, the monthly increase in the rental cost will not be more than 3—5%," Gaidamakha stresses.

According to her, starting from the Q2, as in the last three years, more than 60—65% of the demand for renting Kyiv housing will be concentrated in the segment of apartments with an area of 35—50 sq. m, mainly in Soviet houses located in places with good transport links.

Quote"Traditionally, the overwhelming majority of tenants will look for small apartments at a relatively affordable price. And due to the increase in demand, the highest price dynamics is possible for this type of housing," Olena Gaidamakha says.

Rental rates in Kyiv:

1-room apartments:

  • from 7,000—8,000 in houses of the 60s—70s in dormitory districts;
  • from 25,000 to 27,000 UAH in houses built from 2010 to 2020 in the center.

2-room apartments:

  • from 10,000 UAH in houses of the 60s—70s in dormitory districts;
  • from 40,000 UAH in houses built from 2010 to 2020 in the center.

3-room apartments: from 18,000 UAH and more.

Situation in Ukraine: Demand for economy housing

The prices in Ukraine as a whole will behave more restrained. According to the ARESU, prices will remain at the level of October 2021 in the segment of rental housing in the Q1 of 2022.

Quote"The rental segment is the most sensitive to any socio-economic and pandemic changes. Therefore, any forecasts can be based at the moment solely on the situation that has developed now. The recovery in the rental segment is possible no earlier than in March—April. However, the cost of renting apartments will be formed taking into account the level of demand," Yuriy Pita, the President of ARESU, says.

In his opinion, if the situation in Ukraine remains relatively stable from April to June, an increase in demand in the apartment rental segment is possible within 10—15%, which will affect the price environment—in this case, rent will increase by 10%.

However, the expert did not rule out that the demand for the most requested apartments with an area of up to 50 sq. m may increase up to 20%, and this will accordingly mpact the prices.

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