The cost per square meter in newly erected residential building in Kyiv, Ukraine has increased since the start of 2019.

Real estate prices in Ukraine on the rise

The cost per square meter in the new residential buildings in Kyiv, Ukraine has achieved 24,000 hryvnia (USD 916) by June 2019, Finance.ua reported.

So, if you think of that, prices for real estate in Ukraine aren’t as low as you may have thought. It is just the size of dwellings is much smaller than what you are used to, this is why the total cost per home seems cheaper.

At the start of 2019 the cost per M2 was on the level of 23,700 hryvnia, which then dropped to 23,000 in February-March. However, already in April prices started to move up and ended on the level of 24,000 by June (as per May sales).

The minimum price per square meter in the Ukrainian capital is 16,300 hryvnia ($622). It is 100 hryvnia ($4) higher than in April.

Property prices in Kyiv

The value of property in Kyiv depends on many factors, like everywhere. The largest contributors are the cost of building materials and construction costs. When these costs are on the rise, then the price per square meter in new buildings mirrors it.

Location, infrastructure, architecture and design of the building are also contributing factors to the final costs per square meter. People are willing to pay more for desirable locations, which encourages developers to include add-ons.

Alexander Rubanov, a real estate specialist, explained that newly built residences became the focal point for buyers. According to Rubanov, 70% of all sales are currently in the primary market, and the remaining 30% among transactions involving lived-in apartments and units.

Buyers still prefer cheaper options, such as budget flats and studio apartments. Small apartments cost cheaper and remain more attractive for buyers.

When making a purchase decision, Ukrainians tend to check the developer’s reputation, with several completed projects in the portfolio.

It is not rare in Ukraine that a company collects deposits and disappears soon afterwards, which prompted buyers to be more cautious.

People are actively buying from known developers, and there are not many of these: Kyivgorstroy, Ukrbud, Integral.

The location, infrastructure, architecture, and design of the building affect the final sale price.

Summer is a great time to buy

According to Artur Pinchik, another property expert, summer is the perfect time to buy property in Ukraine.

The demand is down due to the fact that many people take vacations, this is why developers have to stimulate the demand offering discounts. Discounts and delayed payments work; people love them.

He believes 3/4 of property sales in Kyiv are in the primary market.

Financial instruments that developers offer to buyers of new properties are one of the reasons for such shift from the secondary market, popular in recent years.

The ability to purchase a better quality homes also contributes to the popularity of newly erected residential buildings.

It’s easy to buy new apartments from developers offering delayed payments or cheap home loans.

Not only the cities

According to Finance.ua, in the first quarter of 2019, 57% of the newly built residential buildings were signed off in cities: 1,393,800 M2.

The rest was constructed in non-urban locations: 1,060,000 M2.

At the same time, single dwellings comprised 61.7% of all the newly erected real estate. The share of multi-dwellings was 38.3% in the residential sector of construction.

In total, 26,098 new dwellings have been built: 16,900 in cities and 9,200 in rural areas.

The average size of a new dwelling: 94 square meters (1011 square feet).

Single dwelling size: 154 M2 (1657 square feet). In multi-apartment buildings the average size of a dwelling is 57.8 M2 (622 square feet).

7.1% of the total newly erected residential real estate in the first quarter was in Kyiv: 174,300 M2 (1,876,149 square feet).

In 2018, over 100,000 new apartments were built in Ukraine. The average size of a dwelling was 84.2 M2 (906 square feet).

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