Bukovel is a difficult market for newcomers: Karpilovsky talks about investing in Ukrainian vacation
13 October 17:45
Has the last train for investors left for the Carpathians? This question was answered by Dmytro Karpilovsky, a full investor and co-founder of the Ukrinvest Club, during a business discussion with the online business publication "Komersant Ukrainian". He shared his own experience of investing in tourist regions in Western Ukraine and warned against excessive optimism about the Bukovel market.
Bukovel is not forgiving of mistakes
According to the investor, the market around Bukovel is quite complicated, especially for newcomers without experience.
“If you are an investor who just wants to try, then Bukovel is likely to be a difficult market for you. And it is not very forgiving of beginner’s mistakes,” emphasized Dmytro Karpilovsky.
Despite this, it is in the vicinity of Bukovel that the expert’s largest historical investments are concentrated. However, he avoids the “center” and chooses locations with less competition.
“I am an investor who looks for an imbalance of supply and demand in my favor, so I rarely go to the most overheated locations. I have never had a central official Bukovel, but I have invested in Yablunytsia, Polyanitsa, and Mykulychyn,” he said.
Karpilovskyi also shared his latest geographical focus – his team is currently focused on Zakarpattia.
“When we were considering Khust district, we looked at Shayan, Khust, and the surrounding area, but we stopped in Zakarpattia, in Svalyava,” the investor said.
He added that he and his team visited most of the small towns that are not present at the investment fair
Commenting on the topic of the panel discussion – “Bukovel as an investment magnet: has the last train left the station?” – Karpilovsky said that “the first train has just left the station.”
“In my opinion, the first train has started. The problem is that this is the first train on a completely newly built route,” he said.
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However, the investor warns that the industry has not yet been formed – there are no institutions, legal and technical gaps, and the infrastructure remains fragmented. Karpilovsky openly warned potential investors about high risks, lack of transparency, and low market culture:
“As a basic setting: if you go into this industry, you must understand that this is a niche with high risks, high opacity, conflicts of interest, and low culture – both on the part of developers and consumers of investment products,” he emphasized.
The investor does not hide the fact that many market participants may be disappointed. The reasons are both the unfair behavior of management companies and unilateral decisions of developers.
“We have seen many years of shake-ups with facility management. We see arbitrariness on the part of management companies. We see not always loyal actions towards investors from developers,” Karpilovsky said.
Thus, the investment market in tourist real estate in the Carpathians, particularly in the Bukovel region, has potential, but requires careful analysis and experience. As Dmytro Karpilovsky’s practice shows, success is possible, but only if you are careful, have a deep understanding of the market and are ready for difficulties.
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