Real estate market overview for 2018

Real estate market overview for 2018

The prices has dropped drastically and reached critically low levels, according to NBU. But what is happening in real?

National Bank of Ukraine (NBU) keeps declaring in its reports that real estate prices are critically low and housing is available almost at a cost price.

At this, construction costs increase all the time and there is no sense to raise prices because of lack of demand.

The market started to decline in 2008 and it disrupted a lot in 2014 when real estate prices nominated in dollars were falling 2% monthly. That happened due to a sharp devaluation of the local currency hryvnia and weakening of the customers' purchasing power along with the military moves in the East of Ukraine.

According to Eduard Brazas, the chairman of the Union of Experts of Real Estate of Ukraine, the year of 2018 will be a year of stability turning down to a very gradual decline in prices considering the current dynamics. There is no rationale behind for an increase in prices in the market. A growing demand could shape it for better, but this is hardly possible in 2018. As of present, there are so many offers available that a buyer may select among very many options.

For today, Ukrainians can afford to buy property only if selling some of their apartments, believes Victor Nesin, a chairman of the National Council of the Realtor Chamber of Ukraine.

Mortgage loans could improve the situation somewhat opening opportunities up for those who receive paychecks regularly though. The prices for housing will reduce by 10% this year, believes Victor Nesin. If the US dollar doesn’t gain value over UAH 30 the primary market will be more thriving, as housing is usually cheaper there compared to the secondary market, as of yet.

But renting of apartments will become more expensive in August and September. Demand for rental housing is growing, while properties to rent are not additionally put up. Especially, such situation is particular in larger cities: Kyiv, Lviv, Odessa, Kharkiv and Dnipro.

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