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  • Rising prices for apartments in new buildings: challenges for the real estate market of Ukraine
    2024-10-29 15:00:07

    In Ukraine, prices for apartments in new buildings continue to rise, despite the lack of buyers and the difficult situation in the primary real estate market. This market is experiencing the most difficult times in the entire history of independence, especially in the regions that are in close proximity to the front. However, problems have affected almost all areas, which suffer from anxiety, shelling and logistical difficulties, as well as labor shortages.

    A sharp drop in demand for housing remains a key problem. Many Ukrainians postpone the decision to buy an apartment until the end of the war, unless there is an urgent need for it. In addition, in the current environment, buyers increasingly prefer secondary market or near-move-in housing, which are more attractive options.

    According to reports, the demand for housing in new buildings fell in half in September due to rocket attacks, further complicating the market situation. The resumption of construction did not lead to a noticeable increase in interest in new apartments. Volodymyr Danylenko, founder of IT company M4U, which specializes in solutions for the construction industry, notes that the market still shows "relatively weak demand and minimal price dynamics."

    According to Danylenko, the market in September did not show the expected improvement that the developers hoped for. After July's shelling, blackouts and rocket terror, many hoped for a return of pent-up demand in late August. But the reality turned out to be different: new tax initiatives, as well as expectations of a difficult autumn and winter, influenced the revival of interest in new buildings.

    It remains an open question how long this trend of rising apartment prices in new buildings will last, when real demand continues to fall. In the conditions of uncertainty and hostilities, the national economy faces serious challenges that hinder the recovery of the real estate market. Investors and developers are hoping for positive changes, but so far the forecasts remain disappointing.

    The situation in Ukraine demonstrates how external factors can affect the domestic real estate market. Interest in new buildings may recover only after the stabilization of the situation in the country, when buyers will once again consider the possibility of investing in new apartments. However, as long as hostilities continue, many Ukrainians will choose safer options for life.

    e-finance.com.ua

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