Housing prices are rising across most of Ukraine, although the strongest price growth is gradually shifting from the country’s largest and most expensive cities toward regional centres. Kyiv retains its lead in larger apartments, Lviv remains the most expensive market for one-room housing, western Ukraine continues to attract development activity, while the investment appeal of rental property increasingly depends on the specific city, apartment format and relationship between purchase prices and rental rates.

Ukraine’s residential real estate market continued its gradual recovery in the second quarter of 2026. Prices for resale housing and new-build properties increased across most regions, the number of new residential projects in western Ukraine expanded, and rental rates rose in nearly all major cities.

At the same time, it is becoming increasingly difficult to speak of a single nationwide trend. The markets of Kyiv, Lviv, Uzhhorod, Ternopil, Vinnytsia, Odesa and Kharkiv are at different stages of development and respond to different factors. In some cities, buyers pay a premium for relative safety and limited supply; in others, prices are recovering from a low base, while in Kyiv, higher housing prices are being accompanied by largely stable rental rates.

This article is based on LUN’s quarterly Ukrainian real estate market report for Q2 2026. The report primarily uses median market indicators. In the rental segment, asking prices are also compared with the actual rates of apartments that have already been leased. Consequently, the stated prices characterise market supply but do not always correspond to the final value of an individual transaction.

Key market indicators for Q2 2026

• $72,000 — median price of a one-room apartment on Lviv’s resale market;
• $155,000 — median price of a three-room apartment in Kyiv;
• 30% — annual increase in three-room apartment prices in Ternopil;
• $1,500 per sq m — median new-build price in Lviv;
• 184 residential developments — total new-build supply in Kyiv;
• UAH 22,500 — the highest median rent for a one-room apartment, recorded in Uzhhorod;
• 9.1 years — estimated gross rental payback period for a one-room apartment in Ivano-Frankivsk;
• 14.6 years — the equivalent figure in Kyiv.

The market is moving from broad recovery to regional repricing

The first phase following the sharp decline in activity at the beginning of the full-scale war was characterised by the recovery of transactions in relatively safe cities and the concentration of demand in western Ukraine. During 2025–2026, this model began to change.

Lviv, Uzhhorod and Kyiv remain the country’s most expensive housing markets, but the fastest price growth is increasingly being recorded in Ternopil, Vinnytsia, Chernivtsi, Rivne and other regional markets outside the largest cities.

This means the market is moving away from a simple model in which western Ukraine appreciates while the rest of the country lags behind. It is becoming a more complex system of regional growth centres.

Prices, liquidity and housing affordability may also move in different directions. An apartment may become more expensive while selling faster because of stronger demand. In another city, prices may remain relatively stable while housing becomes less affordable because local salaries are growing more slowly.

As a result, analysing only the price per square metre is no longer sufficient. Exposure periods, the ratio of housing prices to local incomes, rental rates, construction volumes and potential investment payback periods are becoming equally important indicators.

Resale market: Lviv leads in one-room apartments, while Kyiv dominates larger housing formats

The leading markets remain unchanged

At the end of the first half of 2026, Lviv, Kyiv and Uzhhorod remained Ukraine’s three most expensive resale housing markets.

Lviv holds first place in the one-room apartment segment. The median price stands at $72,000, representing an annual increase of 11%.

In Kyiv, a one-room apartment costs a median of $69,900, up 8% year on year. In Uzhhorod, the median price reached $67,500, increasing by 7%.

However, Kyiv takes the lead as apartment size increases:

This structure indicates that Kyiv continues to benefit from significant solvent demand for larger apartments. Lviv is more expensive in the compact housing segment, but the larger the purchase budget, the more pronounced Kyiv’s price premium becomes.

Ternopil became the main centre of price growth

Ternopil demonstrated the strongest annual price growth among Ukraine’s major cities.

The median price of a one-room apartment increased by 22% to $47,600. Two-room housing rose by 25% to $75,000, while three-room apartments appreciated by 30% to $89,500.

This is not merely a local increase in one specific housing format. Ternopil is experiencing a broader repricing of its entire residential market.

The city nevertheless remains less expensive than Lviv, Kyiv and Uzhhorod. This creates potential for further price convergence but also increases the risk that property values may rise faster than local household incomes.

A certain degree of balance remains. During the second quarter, the number of annual salaries required to purchase a one-room apartment in Ternopil fell from 7.1 to 6.5.

Private houses: Kyiv remains the most expensive market, but regional prices are rising faster

Kyiv remains Ukraine’s most expensive market for private houses. The median price of a house within the city is $220,000, representing annual growth of 10%.

In Lviv, a private house costs a median of $200,000, up 3% year on year. In Uzhhorod, the median price is $173,000, following an 8% increase.

Prices are rising considerably faster in cities with a lower starting base:

• Ternopil — up 33% to $120,000;
• Lutsk — up 30% to $108,000;
• Kharkiv — up 22% to $85,500;
• Odesa — up 7% to $160,000.

Dnipro was one of the few major cities where private house prices declined. The median value fell by 5% to approximately $52,400.

A separate housing market is emerging outside regional capitals

Even stronger dynamics are being recorded outside Ukraine’s regional capitals.

The largest annual increase in median house prices was recorded in Odesa Oblast, where prices rose by 42% to $63,000. Prices increased by 37% in Vinnytsia Oblast to $61,500, by 31% in Rivne Oblast to $46,000, and by 29% in Chernivtsi Oblast to $42,600.

Kyiv Oblast remains the most expensive regional market, with a median house price of approximately $115,000. However, annual growth was only 6%, considerably below the rates recorded in western and southern regions.

This may indicate gradual saturation in the capital’s most expensive suburban market and a shift in part of the demand toward more affordable regions.

Demand for private houses is supported not only by the desire for more living space. Independent heating, private water supply, backup power generation and reduced dependence on municipal infrastructure provide additional value.

Housing affordability: the highest prices do not always mean the weakest affordability

The housing affordability index compares the full price of a one-room apartment with the average local salary.

In Lviv and Uzhhorod, purchasing such an apartment requires approximately 8.6 years of average local income, assuming the buyer saves their entire salary. This is the highest burden among the main relatively safe regional markets.

In Kyiv, a one-room apartment costs approximately 7.5 average annual salaries, compared with 7.6 a year earlier. This modest improvement reflects the fact that income growth in the capital has broadly kept pace with housing price increases.

The situation has deteriorated in Vinnytsia. The affordability ratio increased to 7.8 years, while its annual growth reached 11%. This means residential property prices in the city are rising faster than local salaries.

In Odesa, a one-room apartment costs approximately 6.5 average annual salaries, while in Dnipro the figure is 4.2 years. In eastern cities, the formal indicator can be even lower, at approximately 2.3–4.2 years.

However, the lower price-to-income ratio in eastern Ukraine should not automatically be interpreted as evidence of a more attractive market. A significant proportion of the discount reflects security risks, lower liquidity and uncertainty regarding future demand.

Among western regional centres, Ivano-Frankivsk appears relatively balanced, with a one-room apartment costing approximately 5.9 average annual salaries.

Kyiv’s resale market: buyers are shifting toward larger apartments

One-room apartments are no longer the fastest-selling format

One of the most important changes in Kyiv’s housing market has been the shift in demand by apartment size.

At the beginning of July 2026, the average apartment exposure period in Kyiv was 41 days, the same as one year earlier. However, compared with January, when the average selling period reached 60 days, the market accelerated by almost one-third.

The performance of different apartment formats varies considerably:

Two-room apartments are now selling faster than one-room units. Three-room apartments have also become significantly more liquid, particularly compared with the January peak, when their average exposure period reached 73 days.

This may reflect a change in the purpose of purchases. Some buyers now view an apartment not only as an investment asset intended for rental but also as a home for long-term personal use. Under this model, additional space, a separate home office, building autonomy and neighbourhood quality become more important than the lowest possible entry budget.

Annual growth conceals a six-month correction

Kyiv housing prices increased year on year, but the first-half performance was uneven.

Compared with January:

• one-room apartments increased in price by 2.79%;
• two-room apartments declined by 3.64%;
• three-room apartments declined by 3.12%.

The faster sale of two- and three-room apartments therefore occurred alongside a moderate price correction. This may indicate that sellers are adopting more realistic pricing expectations and that buyers are responding more actively to appropriately priced properties.

Kyiv districts: the gap between Pechersk and the left bank remains substantial

Pecherskyi District retains its position as the most expensive residential market in Kyiv. The median price reaches approximately $2,970 per sq m.

In the one-room segment, the price per square metre in Pecherskyi District increased by 25% over the year. Prices rose by 21% in Obolonskyi District and by 16% in Shevchenkivskyi District.

Desnianskyi District remains the most affordable location, with prices ranging from approximately $970 to $1,110 per sq m, depending on the apartment format.

Podilskyi District is showing particularly strong growth:

• two-room apartment prices per square metre increased by 17%;
• three-room apartment prices per square metre increased by 26%;
• the full median price of a three-room apartment rose by 21% to $142,000.

Podil may gradually be emerging as an alternative to Kyiv’s more expensive central districts. It combines proximity to the city centre, historic development, new residential projects and a lower entry price than Pechersk.

The most expensive three-room apartments are predictably located in Pecherskyi District, where the median price is approximately $327,000.

New-build market: development activity continues shifting westward

Lviv remains more expensive than Kyiv for new housing

Lviv remains Ukraine’s most expensive city by new-build price per square metre.

The median price is UAH 67,500, or approximately $1,500 per sq m. New housing prices increased by 14% in hryvnia terms and by 7% in US dollar terms over the year.

In Kyiv, the median price is UAH 59,800, or $1,330 per sq m. Annual growth amounted to 9% in hryvnia and 2% in US dollars.

Uzhhorod ranks third, with a median new-build price of UAH 53,600, or $1,190 per sq m.

Vinnytsia recorded the strongest price growth among major cities. The median price increased by 26% in hryvnia terms and 14% in dollar terms to UAH 53,100, or $1,180 per sq m.

Ternopil recorded growth of 23% in hryvnia and 14% in foreign currency. In Ivano-Frankivsk and Chernivtsi, hryvnia prices rose by 22%, while dollar-denominated prices increased by approximately 14%.

Ivano-Frankivsk Oblast became the most expensive non-metropolitan new-build market

Outside regional capitals, the strongest repricing occurred in Ivano-Frankivsk Oblast.

The median price reached UAH 56,300, or $1,250 per sq m. Over the year, prices increased by 50% in hryvnia terms and by 40% in US dollars.

For comparison:

• Zakarpattia Oblast — approximately UAH 50,100, or $1,100 per sq m;
• Lviv Oblast — UAH 46,900, or $1,040 per sq m;
• Kyiv Oblast — UAH 41,000, or $910 per sq m.

The traditional advantage of the Kyiv suburban market is therefore no longer absolute. The Carpathian region is seeing an increase in residential, recreational and apartment-hotel projects aimed not only at local buyers but also at investors from other regions.

However, rapid price appreciation requires more careful analysis of each project. A high asking price per square metre does not in itself guarantee sufficient rental demand, occupancy or liquidity on the resale market.

Kyiv remains Ukraine’s largest construction market

Despite the westward shift in development activity, Kyiv retains the country’s largest volume of new-build supply, with 184 residential developments on the market, 6% more than one year earlier.

Lviv has 151 residential developments for sale, representing annual growth of 9%. Odesa has 75 developments, approximately in line with the previous year.

Zhytomyr recorded a notable relative increase: the number of developments available for sale rose by 47%, although the absolute volume remains limited at 22 projects.

Lviv Oblast led in new sales launches during the first half of the year, with 31 new projects entering the market. Sales commenced in 20 developments in Kyiv Oblast, 12 in Ivano-Frankivsk Oblast and 11 in Zakarpattia Oblast.

Housing completion data also point to greater regional diversification.

Over the past four quarters:

• Kyiv completed 12,020 apartments, 8% fewer than a year earlier;
• Odesa completed 5,250 apartments;
• Lviv completed 4,630 apartments, down 26%;
• Vinnytsia completed 2,290 apartments, up 89%;
• Chernivtsi completed 620 apartments, up 133%.

The growth in regional centres is partly explained by a low comparison base, but it also demonstrates a gradual expansion in the geography of new residential construction.

Kyiv’s new-build market: premium housing is appreciating much faster than mass-market property

Price differentiation between new-build classes is increasing in Kyiv.

In the premium segment, the price per square metre rose by 20.9%, from UAH 134,000 to UAH 163,000.

In the comfort segment, the increase reached 13.1%, bringing the median price to UAH 53,500 per sq m.

Economy- and business-class projects recorded more moderate growth:

The price gap between economy and premium housing is approaching four times, compared with slightly more than three times one year earlier.

This may indicate more resilient demand in the upper price segment, where buyers are less dependent on mortgage financing and place greater emphasis on project concept, services, security, autonomy and location.

The most expensive new developments are located in Pecherskyi District, where the median price is approximately UAH 127,000 per sq m. The median is UAH 76,600 in Shevchenkivskyi District and UAH 72,100 in Podilskyi District.

The most affordable new-build properties are located on the left bank:

• Desnianskyi District — UAH 36,500 per sq m;
• Darnytskyi District — UAH 49,600;
• Dniprovskyi District — UAH 51,800.

The gap between the most and least expensive districts is almost 3.5 times.

The eOselia programme supports sales but does not solve the affordability problem

Ukraine’s subsidised mortgage programme remains an important instrument supporting the sale of completed new-build apartments. At the same time, the number of properties meeting the programme’s price and eligibility criteria is gradually declining.

The median price of the most affordable completed one-room apartment is:

• approximately UAH 2.4 million in Uzhhorod;
• UAH 2.5 million in Kyiv;
• UAH 3.1 million in Lviv.

An average Kyiv resident would need to accumulate approximately UAH 383,000 for the initial payment on such an apartment, equivalent to almost 11 months of their full average salary.

In Lviv, the initial payment reaches UAH 838,000, equivalent to more than two years of average income.

The estimated monthly mortgage payment equals approximately 34% of the average salary in Kyiv, 75% in Uzhhorod and 83% in Lviv.

A preferential interest rate therefore does not remove the main barrier: the need to accumulate substantial initial capital. The eOselia programme remains most effective for households with two incomes, buyers who already have funds from the sale of another property, and clients able to use family capital.

Rental market: western Ukraine remains the most expensive, while the east recovers from a low base

Uzhhorod has the highest rent for one-room apartments

Rental rates are rising across most of Ukraine, although there remains a significant difference between the pace of growth and absolute rental costs.

Uzhhorod is the most expensive city in which to rent a one-room apartment, with a median rate of approximately UAH 22,500 per month. The median is UAH 21,000 in Lviv and UAH 18,000 in both Kyiv and Ivano-Frankivsk.

The strongest annual rental growth was recorded in eastern and frontline cities:

• Kharkiv — up 75%;
• Zaporizhzhia — up 60%;
• Kropyvnytskyi — up 36%;
• Chernivtsi — up 25%;
• Ternopil — up 24%;
• Ivano-Frankivsk — up 22%;
• Lviv — up 20%.

However, high percentage growth does not mean high absolute rental costs. A one-room apartment costs approximately UAH 7,000 per month in Kharkiv and UAH 8,000 in Zaporizhzhia.

The rapid increase is largely explained by recovery from a very low base following the previous market decline.

Two-room apartments recorded even stronger growth

The median monthly rent for a two-room apartment is UAH 33,800 in Uzhhorod, UAH 28,000 in Kyiv and UAH 25,600 in Lviv.

Rental rates doubled in Kharkiv over the year. They increased by 43% in Zaporizhzhia and Mykolaiv, by 30% in Kropyvnytskyi and by 27% in Khmelnytskyi.

At the same time, affordability remains critically low in western cities. Renting a two-room apartment in Uzhhorod is equivalent to approximately 114% of the average local salary. In Lviv and Kyiv, it represents around 80%.

This means that renting a two-room apartment independently is virtually impossible for an average employee. Households with two incomes form the primary tenant base for this type of housing.

Rental yields: Ivano-Frankivsk appears more attractive than Kyiv and Rivne

For investors, rental rates must be analysed in relation to the apartment’s acquisition cost.

Based on median indicators, the price of a one-room apartment in Rivne is equivalent to approximately 16.5 years of gross rent. This is one of the longest payback periods among the cities covered by the report.

In Ivano-Frankivsk, the estimated payback period is approximately 9.1 years. High rental rates relative to apartment prices create a considerably more attractive price-to-income ratio.

In Kyiv, the figure is 14.6 years, compared with 12.7 years one year earlier. The deterioration reflects increasing apartment prices combined with almost unchanged rental rates.

In simplified terms, this corresponds to the following gross rental yields:

• Ivano-Frankivsk — approximately 11% per annum;
• Kyiv — approximately 6.8%;
• Rivne — approximately 6.1%.

These are gross calculations that do not account for vacancy, renovation, furniture, agency fees, taxation, insurance, operating expenses or discounts during actual lease negotiations. Net yields will therefore be lower.

Kyiv rental market: rates have plateaued, while tenants hold greater negotiating power in larger apartments

The median asking rent for a one-room apartment in Kyiv is UAH 18,000 per month, unchanged from one year earlier. It increased from UAH 16,800 in April, but the annual movement remains minimal.

The actual median rent of one-room apartments that have already been leased is approximately UAH 16,900. The relatively small difference from advertised prices indicates a broadly balanced segment.

The situation is different for larger apartments:

In the three-room segment, the gap between landlords’ expectations and tenants’ actual purchasing power is approaching 27%.

Exposure periods are also increasing:

• one-room apartments are leased in an average of six days, compared with four days a year earlier;
• two-room apartments take eight days, compared with six;
• three-room apartments take 15 days, compared with 11.

Owners of expensive and spacious apartments therefore increasingly need to offer discounts or wait longer for a tenant.

Rental rates by district

The most affordable one-room apartment rentals are found in Desnianskyi District, where the median rate is approximately UAH 10,000 per month.

The most expensive apartments are traditionally located in central districts:

• Pecherskyi — UAH 38,300;
• Shevchenkivskyi — UAH 26,000;
• Holosiivskyi — UAH 24,000.

One-room apartment rents increased most significantly in Holosiivskyi District, rising by 20% over the year.

In the two-room segment, rental rates increased most strongly in Podilskyi District, rising by 14% to UAH 28,500. At the same time, they fell by 11% in Sviatoshynskyi District, by 5% in Obolonskyi District and by 2% in Dniprovskyi District.

House rentals: the distinction between Kyiv and its suburbs is becoming less relevant

The median monthly rent for a private house in Kyiv increased by 6.75%, from UAH 84,400 to UAH 90,100.

At the same time, the cost of renting a house in Kyiv and its suburban area has effectively converged.

Administrative city boundaries are becoming less important for tenants. The following characteristics now play a more significant role:

• independent heating and backup electricity;
• security of the location;
• physical condition of the house;
• transport accessibility;
• internet quality and engineering infrastructure;
• the ability to live comfortably through a difficult heating season.

A single Kyiv metropolitan rental market for private houses is effectively emerging, in which properties compete less on formal geography and more on quality and autonomy.

Which market segments may be most attractive to investors?

Kyiv: liquidity and capital preservation rather than maximum yield

Kyiv remains Ukraine’s largest and deepest residential market. Its advantages include a broad base of buyers and tenants, a wide selection of properties and stronger long-term liquidity.

However, the current relationship between purchase prices and rental rates does not provide the highest income return. The gross payback period for a one-room apartment has increased to 14.6 years.

For investors, Kyiv residential property currently corresponds more closely to a capital-preservation strategy than to an aggressive rental-income strategy.

The most balanced options may be liquid one- and two-room apartments near metro stations, in completed buildings, with finished interiors and basic energy autonomy.

Lviv and Uzhhorod: high prices and limited affordability headroom

These cities continue to benefit from strong demand and limited supply of quality housing, but entry prices are already extremely high relative to local incomes.

In Lviv and Uzhhorod, an apartment costs approximately 8.6 average annual salaries, while rent absorbs 66–75% of average local income.

Further price growth remains possible, but it will increasingly depend on buyers and tenants arriving from other regions rather than exclusively on local solvent demand.

Ivano-Frankivsk: attractive rental economics

Ivano-Frankivsk stands out because of its relatively short estimated payback period of approximately 9.1 years.

However, investors need to distinguish between conventional city apartments, recreational units and projects in the wider Carpathian region. These formats have different seasonality, management models, operating costs and risk profiles.

Ternopil and Vinnytsia: growth potential accompanied by overheating risk

Both cities are demonstrating strong price growth and gradually narrowing the gap with more expensive western markets.

Ternopil is recording rapid appreciation across all resale housing formats. In Vinnytsia, new-build prices increased by 26% in hryvnia terms, while resale housing affordability deteriorated.

These markets may offer potential capital appreciation, but purchasing after a sharp price increase requires particularly careful comparison with rental rates and household incomes.

Eastern cities: high potential yields with disproportionately high risk

Kharkiv, Zaporizhzhia and other eastern cities remain the most affordable in terms of both purchase and rental prices. Formal affordability and potential rental-yield indicators may appear attractive.

However, security risks, the possibility of asset damage or destruction, population instability, insurance constraints and uncertain future liquidity mean these investments cannot be directly compared with conventional residential purchases in relatively safer regions.

Key risks for Ukraine’s residential real estate market in 2026

The security situation remains the principal market factor. It determines the geography of demand, the size of discounts, liquidity and investors’ willingness to finance projects at early construction stages.

Energy-related risks are also becoming increasingly important. Generators, backup power for lifts, independent heating, water reserves and reliable shelters are shifting from optional benefits to basic buyer requirements.

Other key risks include:

• continued growth in construction costs;
• exchange-rate fluctuations;
• limited purchasing power among local households;
• a wider gap between advertised prices and actual transactions;
• delays in the completion of new-build projects;
• low liquidity for large or non-standard apartments;
• dependence of part of the market on government-backed mortgage programmes.

Investors must assess not only the potential appreciation of the price per square metre but also a realistic exit strategy: who could purchase or rent the property, at what price and within what period.

What may happen in the second half of 2026

If current conditions persist, moderate resale price growth is likely to continue, although the pace will differ substantially between cities.

Lviv, Uzhhorod and central Kyiv districts may retain their price premiums, while faster growth is more likely in regional cities such as Ternopil, Vinnytsia, Chernivtsi and Zhytomyr.

Western Ukraine is likely to continue concentrating new sales launches in the primary market. Completed or nearly completed projects with confirmed financing, autonomous infrastructure, shelters and clear completion schedules are likely to perform best.

Rental rates in Kyiv may remain relatively stable. The potential for significant further growth is constrained by household purchasing power, as already demonstrated by the discounts required to lease larger apartments.

The private house segment may receive additional support ahead of the heating season, particularly for properties with independent heating, backup generation and reliable engineering systems.

Conclusion

The second quarter of 2026 confirmed that Ukraine’s residential real estate market is not only recovering but also entering a new stage of development.

Lviv remains the most expensive city for one-room housing, while Kyiv leads in larger apartments and private houses. Ternopil, Vinnytsia and other regional centres are recording faster growth and gradually narrowing the price gap with the country’s largest cities.

Development activity continues to shift westward, although Kyiv retains the largest volume of supply and housing completions. At the same time, the price gap between mass-market and premium new-build housing continues to widen.

Uzhhorod and Lviv remain the most expensive rental markets, while Kyiv has reached a rental-price plateau. For investors, this means the capital continues to offer superior liquidity but lower potential rental returns than selected regional centres.

The main change is that Ukraine’s residential property sector can no longer be evaluated as a single market. Every city, district and housing format now forms a separate investment model, with its own entry price, rental yield, liquidity and risk profile.