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How much is housing near Kyiv: price outlook for apartments, townhouses and cottages in the suburbs

Photo: F. Muhammad/Pixabay

Photo: F. Muhammad/Pixabay

The coronavirus epidemic has become a real apple of youth for the housing market in the suburbs of Kyiv: since 2020, there has been a boom in the construction of new cottage townships and townhouses near the Ukrainian capital, and apartment buildings with a high-quality and diverse living environment are in steady demand. The Page has been figuring out what is happening with the cost of real estate in the suburbs, and what is the price outlook for apartments, townhouses, and cottages near Kyiv.

The cost of apartments near Kyiv: increase does not stop since the beginning of the year

Average prices for apartments near Kyiv continue to increase month by month: the cost of housing by mid-May averaged 17,700 UAH/sq. m, having added 300 UAH per month to the price tag, or 1.7%. In dollars, the increase was $10, or 1.6%. Since the beginning of the year, the cost in new buildings of the suburb in hryvnia has increased by 4.7%, or 800 UAH, and in dollars by 6.7%, or $40.

Depending on the distance from Kyiv, a square meter in new buildings costs differently. It is most expensive in residential complexes located up to 5 km from the capital—18,900 UAH and within a radius of 5 to 10 km—18,100 UAH. In residential complexes located at a distance of 10 to 20 km from the metropolis, the average cost of apartments is 16,700 UAH/sq. m.

By comparison: at the beginning of the year, residential complexes within a radius of up to 5 km cost 17,900 UAH, from 5 to 10 km—17,800 UAH, and from 10 to 20 km—15,600 UAH.

The growing prime cost of construction primarily affects the price per square meter in new buildings in the suburbs: the cost of ceramic blocks, reinforcements and insulation has continued to grow rapidly since the beginning of the year. Even the average growth figures put pressure on the average price, prompting developers to revise the price tags.

Equally important are factors affecting the cost of apartments near Kyiv are the increase in demand for certain areas and formats of new buildings, as well as the dynamics of readiness and construction. New buildings with integrated land development, eco-concepts, diverse infrastructure within a radius of up to 5, up to a maximum of 10 km from the capital concentrate on themselves the lion's share of attention.

The buyer is looking for an alternative to a metropolitan residence permit, but is not ready to sacrifice a comfortable environment for life, a habitual daily routine. Filling with infrastructure facilities is important for them, as well as a comfortable distance from Kyiv. Residential complexes that combine a well-developed infrastructure, well-thought-out apartment layouts, and a recreational function (the availability of a forest, a reservoir nearby or on the territory) significantly benefit in the demand level and increase faster in price.

The prices outlook for new buildings near Kyiv for the summer will directly depend on the growth of prime cost, inflation expectations, the volatility of the hryvnia, and consumer preferences. Market players interviewed by The Page are confident that in the summer of 2021, prices for apartments in the suburbs will grow by an average of 3-5%, depending on the location, distance from Kyiv, transport accessibility, concept and infrastructure of the residential complex.

Prices for cottages and townhouses: demand exceeds supply

The increased interest in suburban housing, provoked by the coronavirus pandemic in 2020, continues to this day. But there is no craze in the market—the main activity fell on 2020, during a period of rstrict self-isolation.

In the demand structure, the largest share is concentrated in townhouses and their variations—55%, cottages are in second place—34%. The rest is occupied by houses for temporary residence (in summer or on weekends).

Townhouses are in such stable demand due to the average purchase bill: it often does not exceed the cost of an apartment in Kyiv. At the same time, you have a small plot, a parking space, and a backyard with a barbecue area. Construction companies got the hang of it: the number of small townhouses with an area of 70—90 sq. m, there are also smaller options that also find their buyer.

The average bill in this segment is up to 1.7 million UAH. The houses are usually built from aerated and ceramic blocks, less often from bricks. There are options from SIP panels. They are insulated most often with mineral wool. Townhouses near Kyiv can be bought at a price of $35,000. These will be houses with an area of 40 sq. m and a little more.

It is difficult to ascertain the average cost of cottages—a lot depends on a number of significant parameters: the size of the plot, the distance from Kyiv, the infrastructure of the gated community, utilities, the area and functionality of the house. Two-story houses of 120-200 sq. m, where there is a division into guest and private zones, become popular. The price range in the cottage segment starts from $80,000-100,000—for small houses near Kyiv up to 100 sq. m, and several hundred thousand dollars—for liquid lots in premium locations.

The demand for cottages with an area of 300-350 sq. m, as it was before, has run low. The buyer values the ergonomics of the premises and the aesthetics of planning solutions without unnecessary corners. It is important that there be panoramic windows, high-quality utilities, including the issue of sewerage.

The prices outlook for cottages and townhouses near Kyiv directly depends on the level of demand: if it remains at the current level, then by the end of the year the cost of suburban formats may increase by another 10-20%, depending on the location, infrastructure, format, and square area. However, it seems highly probable that buyers and sellers will simply diverge in price expectations. Given the drop in real incomes of Ukrainians and the growth of inflationary fears, the suburban real estate market may freeze again.

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