RIEL CEO Rostyslav Melnyk: "Today is the Best Time to Buy a Home — the Price Will Only Rise"

Speakers included event organizer and Ukraine Economic Outlook managing partner Mykhailo Kukhar, HUG'S fund managing partner Erik Naiman, KAN Development founder Ihor Nikonov, LUN CEO and housing market analyst Andriy Mima, and other experts.

According to LUN, the average price per square meter in the comfort class has risen significantly since the start of the war. In Lviv it has grown by 61% — from $690 in 2021 to $1,110 in 2025; in Kyiv — by 25% (from $810 to $1,010). At the same time, the number of new projects has significantly decreased.

"In 2021, permits and start-of-construction notifications were issued for 170,000 apartments. In 2024 — only for 69,000, and in the first quarter of 2025 — only 22,000, but importantly, that figure is 35% higher than in the same period last year," Melnyk explained.

He clarified that the actual volumes are even lower, since construction is carried out in stages.

"The real figure is half that, because construction is carried out by launch complexes or phases. That is, because a residential complex is built sequentially, the construction term for an entire complex of, say, 100,000 square meters, given the situation on the real estate market, extends from 4 to 6–8 years. So construction of new housing that could be commissioned in a few years has not yet begun on the market," Melnyk said.

Another factor has been the rise in cost of materials and works.

"The cost per square meter in new construction in Lviv and Kyiv in 2025 has grown by 25% compared with 2021. Most expensive of all became energy-intensive and import-dependent materials (cement, mineral wool, porcelain stoneware, aerated concrete blocks) — up 30%; concrete and rebar — 10–15%. The cost of construction and installation works contributed 12% to overall construction cost," the RIEL CEO noted.

RIEL has also recorded changes in buyer behavior. In 2025 demand for ready apartments rose to 30.8%, and the share of those willing to wait no more than six months grew by 13.8%.

At the same time, the share of those willing to wait more than a year fell from 33% to 20%. Decisive criteria remain the developer's reputation and the location. Buyers have also become more price-sensitive.

Melnyk specifically highlighted the financial changes in the sector.

"If before the war the typical volume of investment prior to the start of sales was about 15% of the total project cost, today it is necessary to invest up to 40–45%. Loans for real estate and construction have also become significantly more expensive: bank rates, taking risks into account, have risen to 18–25% per annum in hryvnia," he explained.

I believe that today is the best price for buying an apartment. There will never be a better one, because both construction costs and the cost of capital will continue to grow, and demand will be very high — Melnyk emphasized.

He also drew attention to international initiatives capable of giving the market a new boost: "The World Bank is working on instruments that will give Ukrainians a chance to acquire housing. One of the trends is leasing-like programs, in which a person can rent an apartment for 15–20 years and eventually become its owner. This is beneficial because leasing can be pegged to a currency, with none of the FX risks of a mortgage."

Despite the challenges of war, RIEL continues to work actively. In 2025 the company presented a new comfort-class housing format — Real Family Style — and launched six new projects with a total area of 560,000 square meters: in Kyiv — Sister and Brother; in Lviv — Big Ben, Hyde Park, Harry and Father.

"We believe in the Ukrainian market and want to be a driver of its development. Even during the war we plan to grow at scale to give Ukrainians modern and affordable housing," Melnyk concluded.

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