November 28, 2024
Despite the low profitability of square meters and the difficult situation in the real estate market due to the war, the shutdown of the country construction market will have major negative consequences for its economy as a whole. This opinion was expressed in an interview with Forbes Ukraine by Rostyslav Melnyk, CEO of RIEL Real Estate Corporation:
“In 2022, there were practically no sales. 2023 showed positive dynamics. If sales grew exponentially, in 2025-2026 we would have reached 30-40% of the time before the start of the great war. However, 2024 was a failure. This became apparent when heavy rocket attacks and blackouts began in the spring, and there was a rollback. Now housing sales are 20 times lower than before the war. “50-70% of them are eOselia deals,” explained Rostyslav Melnyk, ”Stopping our market will have big consequences and problems for the economy. In construction, we use 75-80% of Ukrainian materials, and one builder employs 12 people in other industries.”
The CEO of RIEL Real Estate Corporation also explained why the primary real estate market will not see a decline in housing prices in 2025: “Currently, developers are earning the lowest possible yield per 1 square meter. There is nowhere to reduce. Of course, you can catch a bargain when a developer launches a preferential offer to finance certain works and sells real estate even at a loss. On the secondary market, a decline is possible. People who have left and will not return can sell their apartments at the price they bought them at 5-7 years ago.”
