On March 6, 2025, Kyiv hosted the Ukrainian Construction and Investment Congress, where key challenges and opportunities for Ukraine’s real estate market were discussed. The panel discussion, “Real estate investment: market reset after the war and new housing formats,” brought together leading developers and investors to outline the main trends.
Demand for quick move-in and ready housing
“In recent years, Ukrainians have realized the importance of living in the present rather than postponing life for tomorrow. As a result, the main trend is that people are purchasing housing to move in as soon as possible. The market has revived, sales are increasing, and people continue to invest and buy,” noted Mark Marchenko (SENSAR Development).
This trend also influences investors, who are no longer willing to wait for extended project implementation timelines. “Investors now expect a return within two years,” added Dmytro Struk (Kreator-Bud).
Income-generating real estate and new formats
Not only residential apartments for personal use remain in demand, but also investments in profitable real estate. “Trends include income-generating real estate, hotel formats, and low-rise construction,” emphasized panel participants.
Dmytro Struk also pointed out the growing demand for compact apartments: “The income real estate sector is developing, and demand for small-sized apartments is increasing.”
Changes in architectural solutions
Construction is adapting to new conditions. “Profit margins have been reduced, low-rise buildings are being constructed in Kyiv (9, 12, and 4 stories), and new buildings are incorporating reinforced safety rooms made of monolithic concrete,” explained Struk.
The quality of project solutions has improved significantly. “In development, the approach of ‘we’ll figure it out later’ has disappeared—previously, developers would build space and later decide how to utilize it. Now, project quality has increased, not only from an aesthetic standpoint but also in terms of economic feasibility,” emphasized Andriy Vavrysh (SAGA Development).
Geographic distribution of demand
The market situation varies across regions:
- Kyiv – demand is growing, with an increase in sales compared to the past two years;
- Eastern Ukraine – activity has declined due to security risks;
- Odesa – a complex situation, but with the potential for seasonal growth: “Odesa’s real estate market follows a seasonal pattern, with activity increasing closer to the summer season,” noted Oleksandra Koval (Zezman Holding);
- Uzhhorod – demand for real estate remains, though not as high as in previous years. While investors previously actively invested in properties at the construction stage, they now prefer completed properties.
Foreign investors and market confidence
“Ukrainians currently living abroad are purchasing real estate, but not at the foundation stage—they are opting for move-in-ready housing. This brings significant optimism and hope that people will return from abroad,” stated Oleksandra Koval (Zezman Holding).
Conclusions: market transformation and development prospects
Ukraine’s real estate market is demonstrating adaptability and resilience in the face of new challenges. The main trends indicate a shift in strategies among developers and investors:
- The demand for quick move-in options is driving the development of ready housing, while long construction cycles are becoming less attractive. Developers are shifting towards shorter project timelines and more predictable business models.
- Income-generating real estate continues to develop, particularly in low-rise construction, apart-hotels, and rental housing formats.
- Security solutions have become an essential component of new projects, affecting both construction technologies and overall developer costs.
- The geographic distribution of demand has changed: Kyiv and the Kyiv region remain the market’s driving force, western regions are stabilizing, while interest in eastern cities remains low due to security concerns.
Overall, key market players conclude that real estate in Ukraine remains an attractive investment instrument, even amid economic uncertainty. At the same time, the market is maturing: risk tolerance is decreasing, and priority is given to projects with clear economic models and predictable implementation timelines.
In the long run, the future of the sector will be determined by security conditions, urban planning policies, and the pace of economic recovery.
Ukraine’s residential real estate market in 2024 showed gradual recovery, yet significant regional and structural disparities remained. These critical trends shaping the industry’s dynamics are reflected in data from the State Statistics Service, as reported by Danilo Hetmantsev, head of the parliamentary committee on taxes and finance.
Growth in residential construction volumes
From January to September 2024, 6.73 million square meters of housing were commissioned, a 23.5% increase compared to the same period last year. The number of completed apartments (in both single-family and multi-family buildings) rose by 19.1% to 79,200 units. However, total housing volumes remain at 76.9% of the last pre-war year’s levels (2021).
Regional disparities
Kyiv, Kyiv Oblast, and Western Ukraine remain leaders in housing commissioning. Western regions (Lviv, Ivano-Frankivsk, Zakarpattia, Volyn, Chernivtsi, Ternopil, and Rivne Oblasts) accounted for 38.7% of the total housing area, a significant increase from 31.7% in 2021.
Conversely, five regions (Kyiv, Kharkiv, Sumy, Volyn, and Cherkasy Oblasts) experienced a decline in construction volumes. This is attributed to security risks and limited demand for housing in war-affected areas.
Multi-family and private housing
The recovery in multi-family housing construction is ongoing but remains subdued, reaching only 54.1% of 2021 levels in 2024. Private residential construction, on the other hand, demonstrated significant growth, exceeding pre-war levels by 20.5%. This is partly due to the legalization of previously constructed private homes.
Key factors and prospects
The residential real estate market is influenced by several factors:
- Security risks: Developers are cautious about investing in new projects, which affects the pace of multi-family housing construction.
- Economic challenges: Low investment demand from the population restricts activity in the primary market.
- State support: Programs like “eOselya” and “eVidnovlennya” aim to support the market but have limited impact due to constrained funding.
Noticeable market activation is only possible with reduced security risks, which would increase investor and consumer confidence.
Conclusions
Ukraine’s residential real estate market is gradually recovering from the shocks of war and economic crisis. Despite positive dynamics in housing commissioning, the sector remains dependent on state support and external factors. Stability and strategic approaches to investment attraction and construction support are essential for further development.The Ukrainian residential real estate market in 2024 is gradually recovering but faces regional and structural disparities. Explore key trends and influencing factors in our analysis.
In Ukraine, the issue of reconstructing old residential neighborhoods, particularly “Khrushchyovka,” is being actively discussed. Although the government is developing legislative initiatives for this process, apartment owners in such buildings should carefully assess all risks and opportunities before making a decision.
Legislative initiatives and their limitations
Olena Shuliak, the head of the relevant parliamentary committee of the Verkhovna Rada, emphasizes that Bill No. 6483, which is being prepared for its second reading, provides for the granting of equivalent housing in terms of area and number of rooms to apartment owners in “Khrushchyovka” during reconstruction. Specifically, the bill stipulates that owners of housing in buildings subject to reconstruction will be provided with “equivalent housing in terms of area and number of rooms, regardless of the number of registered residents.” This is intended to ensure that owners do not lose their living space as a result of the building’s renovation.
However, the real conditions may be far from ideal. For instance, even if equivalent housing is provided, it may be located in a different area or have different architectural designs, leading to additional expenses for repairs or even extra payment for “excess” square meters if the developer builds a larger apartment. This can create a significant financial burden for residents, especially those already in a difficult financial situation.
Duration of the reconstruction process and lack of guarantees
According to Olena Shuliak, the issue of updating the old housing stock in Ukraine has been discussed since 2006, but to date, none of the proposed projects have been implemented. This indicates the complexity and length of the process, which can drag on for an indefinite period. Owners of “Khrushchyovka” may find themselves in a situation where their buildings will wait for reconstruction for years, significantly reducing their chances of improving their living conditions shortly.
Olena Shuliak emphasizes that the state is finding it increasingly difficult to sustain old, inefficient buildings like the “Khrushchyovka”. This means that such buildings may still be demolished in the future, but without specific guarantees that owners will receive equivalent housing or financial compensation. In the capital’s “Khrushchyovka,” about 40% of the residents are pensioners. If a person agrees to pay extra in advance but then fails to do so, they may no longer be able to move into the apartment assigned to them. Given the scale of the process, many residents of old buildings may find themselves without a roof over their heads, especially if the state does not provide additional protection mechanisms.
Alternative: profitable sale on the DOMOVA platform
In contrast to these risks, the DOMOVA platform offers “Khrushchyovka” owners a real alternative. DOMOVA allows owners of apartments to combine efforts for the joint sale of the entire building to investors or construction companies, which can significantly increase the value of the property. The uniqueness of the platform lies in the fact that it allows owners to set their prices for their apartments, as well as offering transparent and flexible sales conditions.
DOMOVA also provides an opportunity to avoid lengthy bureaucratic procedures and the uncertainty associated with waiting for reconstruction. This is especially important in a context where legislative processes can be prolonged, and the possibility of receiving compensation or new housing remains highly uncertain.
Selling an apartment on the DOMOVA platform appears to be a much more profitable and reliable solution for “Khrushchyovka” owners who want to quickly and without unnecessary risks maximize the benefit from their property.
On June 27, 2024, the Kyiv School of Economics (KSE), initiated by the European Business Association, presented the results of the study “Structural Changes and Challenges in Ukraine’s Construction Industry: Analysis and Forecasts.” This study assesses the pre-war state of the construction sector and the impact of the full-scale invasion on it. Specifically, analysts examine the level of destruction of Ukrainian infrastructure and identify the necessary materials for its reconstruction.
According to the World Bank, the total cost of rebuilding and recovery in Ukraine amounts to $486 billion. To restore part of the infrastructure mentioned in World Bank reports, approximately $65 billion is needed solely for building materials. At the same time, the vast majority of the necessary building materials can be produced in Ukraine, which will help reduce costs, create new jobs, and increase state budget revenues.
Experts note that over 90% of the necessary building materials can be produced in Ukraine. Among the most important materials for reconstruction are cement, concrete, metal structures, bricks, glass, and thermal insulation materials. This will promote the development of domestic production capacities, which in turn will create additional jobs and support the economy.
“Current investments are crucial, but additional billions are needed to restore Ukraine’s infrastructure and economy. It should be noted that investments, in particular, will contribute to the development of domestic production capacities, creating new jobs and supporting the economy,” said Maksym Nefyodov, Director of Innovative Solutions at the KSE Institute.
Restoring infrastructure requires significant investments. In particular, the CRH group, one of the largest building materials manufacturers, has already invested $80 million in Ukraine’s construction sector during the full-scale invasion. The Irish company Kingspan plans to invest $300 million in the “Sírsa” project (Irish for Freedom), which involves the construction of a production campus in western Ukraine by 2026.
Ukrainian businesses are also actively investing in the construction sector. The development company City One Development has started building a glass factory in the Kyiv region, valued at €100 million. This is the only similar project in Ukraine after the previous plant was destroyed in 2014.
The study by the Kyiv School of Economics emphasizes the importance of rebuilding Ukraine’s infrastructure and the need for significant investments in this process. The use of domestic building materials, support for local producers, and attracting international investors are key elements for the successful recovery of the country.
The DOMOVA platform plays an important role in this process, offering unique solutions for uniting property owners and attracting investments. This will contribute to the development of the Ukrainian economy, the creation of new jobs, and the restoration of the housing stock.
In the current conditions, Ukraine faces enormous challenges in the housing sector, especially after the destruction caused by military actions. Recently, an important Memorandum was signed between the Government of Ukraine and the World Bank aimed at supporting housing reform in the country. This opens up new opportunities for attracting private investment and creating an efficient housing ecosystem, which will stimulate economic growth and improve the quality of life for citizens.
The Memorandum of Understanding between the Government of Ukraine and the World Bank was signed by the Prime Minister of Ukraine Denys Shmyhal, the World Bank Vice President Antonella Bassani, and the International Finance Corporation Vice President Alfonso Garcia Mora. The purpose of this Memorandum is to jointly prepare and implement a national housing strategy that will create conditions for citizens to access safe and affordable housing.
As stated in the Memorandum: “Ukraine has taken steps to start reforming the housing sector to create an efficient housing ecosystem with active private sector participation, which would stimulate growth in many areas of the economy and make a significant contribution to enhancing Ukraine’s economic resilience. To this end, Ukraine is finalizing the development of a comprehensive housing policy concept, which will be followed by the preparation of various tools, including a national housing strategy.”
Development of the national housing strategy
The Memorandum provides for the development of a national housing strategy, which will define the main priorities, policies, programs, and timelines for the entire sector over 5 – 7 years. This strategy should ensure compliance with EU requirements and take into account all the challenges facing Ukraine’s housing sector both before and as a result of the war.
The start of work on the national housing strategy project was noted in a joint statement announced by the Ministry of Infrastructure along with partners, including the World Bank, following consultations held on April 3, 2024.
The Ministry of Community Development, Territories, and Infrastructure, with the involvement of a wide range of representatives from international organizations, is working on developing a new housing policy, particularly the draft Law of Ukraine “On the Basic Principles of Housing Policy,” which is the foundation for implementing the new housing policy concept and housing reform in Ukraine.
It is expected that within the framework of the Memorandum, the parties will jointly undertake actions aimed at combining efforts and experience to support the Government of Ukraine in preparing and implementing the national housing strategy. This will include priority measures for legislative regulation and financing of the housing sector, developing incentives for the public sector to attract private sector resources, creating a favorable business environment for private investment in the housing sector, mobilizing private capital through various financial instruments, and developing affordable solutions for home buying and renting.
Private investments and social responsibility
DOMOVA contributes to attracting private investments in the housing sector by creating a favorable business environment for the development of affordable, quality, and safe housing in line with today’s conditions.
This includes developing affordable solutions for the sale and purchase of dilapidated and run-down housing, and mobilizing private capital through investment in construction. Besides economic benefits, the company also works on solving social problems by promoting the renewal and modernization of the housing stock.
To ensure that everyone can coexist comfortably in society and have equal opportunities to access parks, homes, schools, hospitals, cafes, shops, etc., it is essential to consider the specific features and needs of all categories of citizens.
The UN Convention on the Rights of Persons with Disabilities, ratified by Ukraine, declares the principles of equal opportunities, non-discrimination, and respect for human dignity, the freedom to make one’s own choices, and independence. This applies to individuals who experience difficulties in independent mobility, receiving services, obtaining information, or navigating spaces, such as people with disabilities (those with visual, hearing, or musculoskeletal impairments), the elderly, pregnant women, individuals with temporary health issues, and those with strollers. They have equal rights to access all public facilities. For their rights to be realized, buildings and structures must be adapted and accessible; otherwise, all discussions about equality and inclusivity become meaningless.
Buildings and structures that meet the regulatory requirements for ensuring accessibility and safety for people with limited mobility are considered accessible. This is achieved through the implementation of comprehensive architectural and planning, engineering and technical, ergonomic, constructional, and organizational measures. There are two main blocks of building accessibility for people with limited mobility: informational and architectural.
Informational accessibility includes the ability to freely obtain information about an object, and navigate within it and in the surrounding area: information boards, signs (both regular and in Braille) for people with limited mobility, and traffic lights equipped with sound signals. This allows a person to independently understand how to enter and exit the building.
Architectural accessibility involves the direct adaptation of buildings for use by people with limited mobility: the presence of ramps, lifts, and similar features. Information about architectural accessibility should also be conveyed through informational accessibility.
Architectural accessibility is ensured through universal design or reasonable adaptation of existing buildings. The principles of reasonable adaptation allow for the provision of a minimum standard of accessibility during the reconstruction, restoration, major repairs, and technical re-equipment of residential buildings and public facilities. These measures may include ramps, lifting devices, and other mechanisms.
LUN City, in collaboration with students from Taras Shevchenko National University of Kyiv (KNU), conducted a study on the level of architectural accessibility of residential buildings in Ukraine. As part of the program, about 1000 residential buildings were studied in 23 cities across Ukraine, including Odesa and Kyiv.
In Kyiv, only 30% of the surveyed buildings have ground-level entrances, and a compliant ramp (with a slope of 3-5 degrees, a width of 1.2 meters, with handrails and a non-slip surface) is present in only 9% of buildings.
Regarding access to shelters: only 3% of shelters have a wide entrance and a compliant ramp, and only 8% have a restroom, with none having restrooms for people with disabilities. The overwhelming majority of buildings do not have equipped shelters, and people use parking lots during air raids.
On August 22, 2023, the President of Ukraine, Volodymyr Zelensky, signed an important law on the mandatory provision of bomb shelters in new buildings. Earlier, on August 10 of the same year, the norms DBN B.2.2-5:2023 were approved, which regulate the construction of civil protection structures.
According to the new norms, underground parking and other premises must be adapted for sheltering people and be barrier-free. There should also be safety rooms on the floors, and the building must have fire-resistant walls and windows. These regulatory acts are intended to ensure the protection of the population under threat and influence the approach to construction and the provision of communal services.
In 2023, the Ukrainian real estate market went through a real test period due to the destabilization caused by the war. The research conducted by LUN Agency shows that interest in buying apartments remains at a fairly high level – 70-80% of the pre-war level.
Among the regions far from the fighting, there is an increase in prices on the secondary market, even in currency terms. In contrast, Kyiv has seen a 3% decline in the cost of one-bedroom apartments, while in Lviv and Ivano-Frankivsk, prices have risen by 12% and 18%, respectively.
What is the situation in the primary market? Although developers have resumed the work of sales departments, the pace of construction has slowed significantly. This resulted in a 15% decline in new housing starts in Kyiv, 35% in the Kyiv region and 38% in Lviv. This situation may lead to a shortage of new apartments, which is especially important in the context of the preferential mortgage program eOselya.
In the spring of 2023, the demand for apartment purchases stabilized, indicating a gradual return of the interest in investing in housing. The government program eOselya, which provides preferential lending terms, also helps to stabilize market confidence.
Odesa, one of Ukraine’s key cities, has also seen changes: prices for two- and three-bedroom apartments are up about 1%, while prices for one-bedroom apartments have dropped by 1%. The highest prices are observed in Prymorskyi and Kyivskyi districts of the city.
Overall, 2023 is characterized by a gradual recovery in the real estate market. Demand is focused on finished housing, as such investments are considered less risky. However, a slowdown in construction and uncertainty on the frontline could lead to a housing shortage.
The primary market is seeing growing interest in apartments. Real estate experts say that important criteria for choosing a property are its liquidity, the developer’s reputation, and the current state of construction. They also predict a 15% increase in prices in the primary market in hryvnia in early 2024 and stabilization in the secondary market with an increase of 6-10% in dollars.
The speed of project implementation by developers depends on the state of Ukraine’s financial sector. Returning to the January 2022 figures will require significant time and effort. Currently, the Ukrainian economy remains stable thanks to strong support from Western partners and allies.
The consumption sector continues to recover, but investment activity declined significantly in the second half of 2023. Financial experts see the potential for economic growth through exports, despite the attacks, thanks to the operation of the sea corridor from southern ports.
According to the Forbes, experts point to a clear signal that the budget deficit is unlikely to widen in 2024. There is a high probability that investing in real estate as a way to preserve capital will become popular again this year. It is noted that approximately $15 billion is on hryvnia deposits, $11 billion is on foreign currency deposits. A report by the National Bank of Ukraine indicates that between $60 and $100 billion is held in cash by households.
Today, the market has recovered about a third of sales compared to the pre-war period, which is a positive message. At the same time, dollar inflation poses risks, but buying real estate can protect against inflationary losses, which is one of the reasons why people continue to invest their free money in real estate.
Experts also predict a new approach to construction and the launch of new projects. One of the innovative approaches to solving the problem of emergency housing and reconstruction was demonstrated by the Ukrainian platform DOMOVA. DOMOVA positions itself as the world’s only IT platform that provides apartment owners in old and dilapidated buildings with the opportunity to unite to sell the entire building together.
The company provides convenient and transparent mechanisms for such an entity, offers a free sale request, and attracts investors and construction companies.
Black Swans always bring not only changes but also new solutions.