The prices for square meters of new buildings after the war will be even higher: experts named the reasons
3 June 13:52
During the war, the number of new projects in the housing construction sector is minimal
During the war, the real estate market in Ukraine is going through difficult times. Experts have assessed acutal trends and made a post-war forecast. In particular, they expect an increase in the price of a square meter in new buildings and explain why such a trend is inevitable, writes “Glavkom”, informs
The fact is that during the war, the number of new construction projects in the housing sector is minimal.
“If we are talking about residential real estate, today, in the conditions of war developers do not risk starting new large projects. The construction business is primarily unfocused on somehow completing what was started before the war. And this is difficult. In addition, some developers during the war reoriented themselves to hotel and recreational real estate in the western regions of Ukraine. Accordingly, after the war is over we will have a minimum number of new buildings, which will logically affect their cost. And it will be definitely higher than the price tags we see now.
In addition, we will deal with the so-called pent-up demand, when the need for housing after the war will grow, which will also push prices up,” – commented in the company Rehrsrektuva Group.
The company adds that each region of the country should be considered separately, because, at least, the level of demand everywhere is different.
So, as of now, the most expensive objects are in Lviv ($1350/sq.m), Kiev ($1290/sq.m) and Uzhgorod ($1100/sq. m). And the most affordable prices for new square meters are in Zaporizhzhya ($610), Sumy ($620) and Kharkiv ($670). Such data provides research OLX Real Estate.
And it is the west of Ukraine remains the leader in terms of price growth for new apartments. In some projects in Lviv the cost per square meter has already equaled the real estate of the capital, and sometimes will exceed it by the end of the year.
Developers point out that the preconditions for price rise in new buildings have already formed, and the business is trying to restrain them in every possible way. However, by the end of this year, the cost of new residential real estate can grow by at least 5-10%.
“If the macroeconomic situation will be more or less stable, or at least will not deteriorate, it is likely that prices will grow within 5-10% due to inflation and the gradual recovery of the construction industry,” says Irina Mikhaleva, CMO Alliance Novobud.
The prices in new buildings in the future, among other things, will be influenced by new legislative changes, experts explain. In particular, it is about the fact that it has become more difficult to get a plot for construction.
“After the changes in legislation from January 2024, it has become much more difficult to obtain plots for residential construction. Developers who already have land assets with the intended purpose will be able to continue working, but there are critically few such sites. And after the end of the war, the need for housing will increase significantly,” – explained in Real.
Given such tender and market realities, it is better to invest in ready-made new buildings. But when it comes to residential new buildings at the initial stage of realization, while there is a war, such investments remain very high-risk. Due to the complex geopolitical situation, martial law, mobilization processes and economic instability in the state, no developer is not insured from the risks of freezing or delaying the delivery date of the object.
As wrote
We would like to remind you that according to OLX Real Estate analytics, to buy their own apartment Ukrainians need to work on average 5-7 years, saving their entire salary.
