Western regions hold growth in renting of dwellings

Author

Lesia Solovchuk

Rental prices are breaking records in Zakarpattia, Bukovyna, and Lviv region. Growing demand for rent is recorded in most regions of Ukraine.

According to Flatfy (project LUN), there is a rental boom in the secondary real estate market not only in the west, but also in the central and eastern regions.

Except for regions that are at the epicenter of hostilities, there is a demand for rental housing throughout the country over the migration of resettlers.

Rental prices in different regions of Ukraine

The highest price hike in dollars per square meter for rental housing is recorded in the western regions — the most remote ones from the hostilities.

According to the Chairman of the Association of Realtors of Ukraine Yuriy Pita, a record growth is recorded in Zakarpattia, Chernivtsi, and Lviv region, where demand has increased many times and many times exceeds supply.

According to him, the migration of people will slightly change the situation, but prices in the west of the country will continue to be kept at the current level, because hostilities continue, and people are forced to pay for "safe" temporary accommodation.

Unlike in the country's west, rental prices have dropped in Kyiv since the first days of the full-scale invasion.

"In Kyiv, rental prices have dropped by 30-50%, depending on the segment and type of housing. All categories have declined. There are even isolated cases when people do not pay rent at all — they pay only utilities. These are usually those who rented and stayed," Pita explained.

Housing prices by regions (LUN’s statistics):

Zakarpattia region — +225% increase compared to the pre-war period;
Chernivtsi region — rent increase +156%;
Ivano-Frankivsk region — increase +128%;
Lviv region — increase +96%;
Cherkasy region — increase + 88%;
in Zaporizhzhia region, the price tag for rent increased by 41%;
in Dnipropetrovsk region — by 34%.

Dwelling for rent: supply and demand

At the same time, the number of rental housing offers has significantly decreased compared to October 2021.

There are 90% fewer ads in the Kherson region — however, there are some, despite the temporary occupation.

In the Mykolaiv, Cherkasy, Rivne, and Ternopil regions, the supply decreased by 83-86%, in the Zakarpattia, Ivano-Frankivsk, Volyn, Khmelnytskyi, and Kirovohrad regions — from 72 to 79%. But in the Chernihiv region, the supply increased by 20%.

Demand for housing in western Ukraine has increased markedly. Most often, apartments are looked for in the Ternopil region — the increase in requests is 373% compared to 2021. There is interest in housing in the Zakarpattia region — + 316%, in the Khmelnytskyi region — + 280%, in the Cherkasy region — + 196%.

The demand for rental housing dropped the most in the Chernihiv, Sumy, Kharkiv, Mykolaiv, and Odesa regions — minus 90 — 93%.

The figures for October 2021 and May 2022 are given for comparison. Data is not available for three regions: Donetsk and Luhansk regions and Crimea.