Ukrainians prefer to buy homes and rent mostly budget flats, according to Finance.ua. 1-room units up to 50 m² (538 square feet) are the most popular among locals, according to data by SV Development.

What Ukrainians seek in rentals

According to Sergey Kostetskiy, a real estate expert, the highest demand is for apartments priced under 5 thousand UAH (USD 180) per month, and one can only get a really poor quality worn off old-style flat in aged buildings for this money. Still, such offers are quite rare, but small and inexpensive units are what the market cannot get enough of.

Refurbished 1-room flats cost around 6,000 hryvnias ($215) monthly. The price is the same for a small 2-room apartment without furniture or appliances, located in remote areas. Better options are available for 8,000 hryvnia ($285) monthly, according to the expert.

People in Ukraine mostly live in units in high-rise buildings. Owing a stand-alone house is rare.

Kiev rental market

In Kiev, nearly 1,500 units are rented every month.

Investors buy small units to rent out, but it takes approximately 30 years to recoup the investment, within the current market situation. Prices for real estate have been stagnant for years, although there is a rise in values this year. But if the US dollar to hryniva exchange rate jumps, then any gains will be quickly wiped out.

Many landlords tend to lift up the fees when former tenants move out and the new ones move in. For example, a flat owner used to rent out his property for 4,000 hryvnias (USD $140) a month, but new tenants will be asked for more money, since such prices are now seen as undervalued. As in many regions, the cost of lease constantly grows in Ukraine, while values of sales may remain relatively stable.

How much to buy a unit?

The prices for real estate in Ukraine are on the rise. Ukrainians rarely buy expensive apartments, they prefer cheap units to costly ones. The target audience of such apartments includes young families, university graduates, and kids leaving parental homes.

• In the capital of Ukraine, 1-room apartments are sold on average for around USD $30,000.
• In regions flats cost from $20,000 to $25,000.

The total area of 1-room flats is around 50 m² (538 square feet), on average.

‘Half of the flats in newly built buildings are 1-room. It could be quite spacious – up to 70 m². Then there’s an opportunity to rebuild it into a 2-bedroom apartment,’ Kostetskiy summarized.

Read also:

• 70% of Ukrainian rental market is in the shade
• Rent in Ukraine
• How much does it cost to rent an apartment in Kiev?
• Most expensive European capitals to rent a home for foreigners