"RIEL Academy" Issue 23 — Rent, Buy or Invest?

In the new issue we cover these important topics:

• Rent or buy a home? We analyze all the pros and cons to help you make a balanced decision.
• How not to overpay for renovation? Practical advice on how to plan your budget, choose materials and avoid overspending.
• Residential vs commercial real estate: Which is more profitable for investment in 2025? An objective look at risks, profitability and potential.

As always, we share professional experience and practical advice so that your interaction with real estate is as effective, safe and profitable as possible.

"RIEL Academy" — the complex made simple, the important made professional.

Download the new issue right now and stay tuned for useful solutions with RIEL! 

Hello, dear clients!

Before you is the 23rd issue of "RIEL Academy".

Several months of the new year are behind us, so it is time to sum up the past and talk about future prospects.

2024 was a year full of challenges, but it was also a year of resilience, hard work and important achievements. During this difficult period, RIEL Real Estate Corporation maintained its stability and continues to grow, implementing new projects and helping hundreds of Ukrainian families obtain their own homes.

Despite all difficulties, in 2024 we commissioned:

• in Lviv: 1,454 apartments (total residential area 35,998.24 m²),
• in Kyiv: 535 apartments (total residential area 11,541.5 m²).

We are not stopping in 2025 — we are launching new projects in Lviv and Kyiv. There are even more opportunities and achievements ahead, and we move confidently toward them with you.

Thank you for staying with the big RIEL team!

Sincerely, Rostyslav Melnyk, General Director of CN RIEL.

INTRODUCTION

Renting, buying or renovating? In this issue we weigh all the pros and cons of rented vs owned housing, explain how not to overpay for an apartment renovation, and discuss where it is better to invest in 2025 — residential or commercial real estate.

RENT OR BUY: HOW TO MAKE THE RIGHT DECISION

The choice between renting and buying real estate is complex and multifaceted. On one hand, many dream of their own home, which gives a sense of stability and security. On the other hand, renting provides greater mobility and freedom from a number of responsibilities of home ownership.

In recent years, in developed countries renting has become a quite popular alternative to buying; however, in Ukraine the attitude toward rented housing often remains as toward a temporary option. Let us look more closely at the advantages and disadvantages of each option, and add several recommendations and aspects to help you make a balanced decision.

BUYING YOUR OWN HOME

Advantages

1. Investing in real estate is often viewed as a long-term inflation-protected investment. This is especially relevant in periods of instability, when real estate can retain or even increase its value.

2. As the owner of your apartment or house, you have the full right to arrange your home to your taste, do renovations, rearrangements and design changes — without third-party approvals.

3. Owned housing provides confidence in tomorrow, since you do not depend on a landlord's decision to terminate the contract. This can be very important for families with children and people seeking long-term stability.

Disadvantages

1. Apart from the cost of the property itself (down payment or full amount), the owner also bears costs of repairs, utility payments and maintenance of the building or the surrounding territory. With a mortgage you must also factor in bank interest and possible additional risks.

2. If you need to move, you will spend time looking for new housing and selling the existing one. This process can be slow, especially in periods of economic instability.

3. Housing prices can both rise and fall, particularly on the secondary market. The reputation of developers is also worth considering if you are buying a new build during construction.

LONG-TERM HOUSING RENTAL

Advantages

1. The ability to move at any time without worrying about selling or buying property. This is convenient for those who often change jobs or like to travel.

2. Under rental conditions you can live in more prestigious or convenient locations even if buying housing there is not affordable for you.

3. Repairs, modernization of engineering systems and major maintenance of the building usually fall on the owner.

Disadvantages

1. The landlord can raise rent or refuse to renew the contract altogether. In addition, any changes or renovations in the apartment must be agreed with the owner.

2. In some cases there may be bans on pets, small children, smoking, etc., which affect living comfort.

3. You pay monthly rent, but the funds do not convert into a personal asset.

Additional aspects to consider

1. Before buying a home, it is important to assess your ability to make mortgage payments (if needed) or installment payments to the developer. This is especially relevant for families with unstable income.

2. If your work involves frequent moves or long business trips, renting may turn out to be more convenient.

If you have permanent work and plan to stay in one place for a long time, buying a home appears to be the optimal decision.

3. Periods of "stagnation" or "boom" in the real-estate market influence the decision. In times of economic instability renting may be safer, while in "quiet" growth periods investing in real estate can bring significant profit, should you suddenly need to change residence or circumstances require selling the purchased apartment.

4. If you are considering buying in a new build, it is important to verify the developer's reliability: study the experience of completed projects, find out about purchase conditions, deadlines for putting the property into operation, and construction quality.

CONCLUSION

Each option — both renting and buying — has its unquestionable advantages and significant disadvantages. The final choice depends on your current financial possibilities, personal plans, lifestyle and long-term priorities.

• If independence is important to you, you want to arrange space "for yourself" and create a long-term financial asset, then buying a home may be a good option.
• If you value mobility and do not yet have stable financial resources or confidence in tomorrow, renting will be the more acceptable choice.

When considering buying a home, especially in new buildings, it is important to cooperate with a reliable developer. This reduces risks and provides confidence in construction quality.

Thus, if financial circumstances allow and your life schedule is set up for long-term stability, buying a home from a trusted developer becomes not only a comfortable and safe choice but also a promising investment in the future.

HOW TO AVOID BUDGET OVERRUNS DURING AN APARTMENT RENOVATION

Apartment renovation can become a real test for the family budget, especially if several important nuances are neglected.

Proper planning, work organization and expense control will help you avoid extra costs and save your nerves. Below are practical tips on avoiding typical renovation mistakes.

1. START WITH A DESIGN PROJECT

Renovation without a design project is like construction without drawings. It is the foundation of the whole process and helps avoid chaos and unnecessary expenses. Here is why it is necessary:

A design project provides a clear understanding of the home's style, color palette and functionality of the space.

A designer creates a working project with a detailed list of materials, helping to avoid spontaneous purchases and unjustified expenses.

Thanks to the project, you can prepare several estimate variants (economy, mid-range, premium) and choose the optimal solution for your budget.

It greatly simplifies the work of builders and the foreman: they will have a working project with a materials list.

2. PREPARE A CLEAR ESTIMATE

A detailed estimate helps keep expenses under control and avoid overruns. It is important to factor in: the cost of materials according to the design-project specification; the cost of crew labor — with working drawings, builders can immediately assess work volumes; additional services (logistics, waste removal, technical supervision); alternative material options (economy, mid-range, premium) for possible budget adjustments.

Do not make prepayments without a contract and always check that received materials correspond to receipts.

3. SIGN AN OFFICIAL CONTRACT WITH BUILDERS

The contract should specify clear deadlines. At the same time, it is important to provide penalties for missing them. This protects you from excessive delays.

The contract must accurately describe the scope of work and party responsibilities. This helps avoid unforeseen changes during the renovation.

4. MONITOR THE WORK AND CHOOSE SIMPLE SOLUTIONS

Familiarity with the basics of construction processes helps you control the quality of work. The design project provides the opportunity to track implementation stages to avoid deviations.

The fewer partitions there are in an apartment, the cheaper it is to finish. Consider whether unnecessary walls are needed — perhaps an open layout will be more functional.

5. WALLPAPER OR PAINT: WHICH IS BETTER?

Wallpapering is often considered cheaper because sometimes you can skip thorough wall leveling. However, in case of damage or staining over time, you will have to remove wallpaper around the entire room and re-paste it.

Although paint requires a better-prepared surface, in case of local damage updating is simpler and cheaper, since paint can be touched up in one spot without major repairs.

You can combine wallpaper and paint — for example, highlight certain accent walls with wallpaper and paint the rest. This both saves money and adds interesting dynamics to the interior.

Thanks to the design project it will be clear in advance which materials and techniques suit your space.

6. EFFECTIVE LIGHTING: TWO SCENARIOS

Task (main) lighting: install built-in or surface-mounted fixtures with strong light output. They are easily found in DIY hypermarkets and often at affordable prices.

Ambient (for relaxation): add designer pendants, floor lamps or wall sconces to create cozy lighting for evening rest or a romantic dinner.

Pendant lamps (chandeliers) accentuate a kitchen island or dining-table area well. A floor lamp by the sofa or armchair perfectly complements the living room. A wall sconce by the bed provides additional soft lighting.

7. WHAT NOT TO SAVE ON

Trying to find the cheapest workers can lead to unprofessional execution and even missed deadlines. As a result, renovation can become an endless process and cost significantly more in the long run.

Electrical, gas, sewage, water, heating and ventilation systems all affect your safety and comfort. Choose quality materials and experienced specialists to avoid accidents and additional expenses in the future.

And remember — saving on windows and doors can lead to heat losses and quick loss of tightness. Quality hardware (locks, hinges, handles) ensures long service life and protection from wear.

8. ADDITIONAL TIPS

If your budget is limited, first invest in what cannot (or is very hard to) change quickly: wall and floor leveling, replacement of utilities.

Decor and furniture can be updated later. Look for special offers — DIY hypermarkets and online stores often discount paint, tiles, tools and similar items. Watch for sales and seasonal promotions. Most importantly — make balanced decisions about colors, materials and style. Haste can lead to additional costs due to rework and corrections.

CONCLUSION

Renovation without stress is possible if you act according to a clear plan. Start with a design project to immediately define style, materials and budget. Control the process, stick to the estimate, invest in quality materials and professional contractors. Proper planning is the key to a successful renovation without extra costs.

RESIDENTIAL VS COMMERCIAL REAL ESTATE: WHAT IS MORE PROFITABLE FOR INVESTMENT IN 2025?

The real-estate market is constantly changing under the influence of economic, social and technological factors. In 2025 investors continue to look for the most profitable investment options, and a choice arises: residential or commercial real estate?

Both options have advantages and risks that should be assessed before making a decision. At the same time, the war is ongoing in Ukraine, which affects all aspects of the real-estate market.

ЖИТЛОВА НЕРУХОМІСТЬ: СТАБІЛЬНИЙ ПОПИТ, АЛЕ ДОВГИЙ ТЕРМІН ОКУПНОСТІ

Pros of investing in residential real estate

Stable demand — housing is always needed, even in periods of economic instability and war, when many people change residence.

Possibility of renting out — demand for rental in regions relatively safe to live in is growing.

Liquidity — an apartment is relatively easy to sell, especially in large cities or suburbs.

Lower risk of losing tenants — unlike commercial real estate, residential premises rarely stay vacant.

Ease of management — no special knowledge is required, unlike with business premises.

Cons of investing in residential real estate

• Long payback — on average from 10 to 20 years.
• Low profitability compared to commercial real estate (5–7% annually of the asset's value).
• Risks of damage due to hostilities — in some regions the threat of destruction increases investment-loss risks.
• Additional expenses — repairs, utility payments, taxes.

COMMERCIAL REAL ESTATE: HIGH PROFITABILITY BUT DEPENDENCE ON THE BUSINESS ENVIRONMENT

Pros of investing in commercial real estate

• Higher profitability — commercial-real-estate profitability can reach 10–15% annually.
• Long-term lease agreements — tenants can sign agreements for 3–10 years.
• Ability to raise rent — rent growth for business premises can outpace inflation.
• Demand for warehouses and production facilities — due to business relocation from frontline areas.

Cons of investing in commercial real estate

• Higher entry cost — commercial premises are more expensive than residential.
• Vacancy risks — due to hostilities some businesses close or migrate.
• Need for active management — a professional approach is required to find and retain tenants.

Who is suited to commercial-real-estate investment?

• Businesses planning to use the premises for their own needs.
• Experienced investors who understand wartime risks and can forecast demand.
• Those investing in strategic facilities (warehouses, logistics centers, production premises).

CONCLUSION

The choice between residential and commercial real estate depends on your strategy, financial possibilities and understanding of the market. If you need stable but relatively modest income — residential real estate in regions without hostilities. If you have capital and experience to manage properties — commercial real estate can give higher profitability.

A combined approach is one of the best options. Investing partly in residential and partly in commercial real estate helps balance risks and increase profitability.

In any case, before purchasing it is important to analyze the location, demand, possible risks and the overall security situation in the country.

RIEL Real Estate Corporation is always ready to consult and help you choose the best type of investment in residential and commercial real estate in Lviv and Kyiv.

Download the new issue right now and stay tuned for useful solutions with RIEL!