February 19, 2025
The prospects for the Ukrainian real estate market in the coming years will depend on the level of security, the effectiveness of reconstruction programs and the volume of international investment. Rostyslav Melnyk, CEO of RIEL Real Estate Corporation expressed this opinion in a commentary to Finance.ua.
“We depend not only on the situation at the front, but also on the overall geopolitical stability. At the same time, there will be no sharp price jumps in 2025-2026. Growth is expected to be moderate – in the range of 15-20%. The western regions will remain the leaders in terms of price increases, and prices in Lviv may approach those in Kyiv,” Melnyk said.
However, according to him, the market will also face other serious challenges.
“Due to economic difficulties, many developers will not be able to resume construction of their projects. This will increase the number of frozen projects, which, in turn, will affect buyer confidence and market stability,” explains the CEO of RIEL Real Estate Corporation.
In addition, since January 2024, the procedures for changing the designated purpose of land plots for residential construction have become much more complicated.
“This further reduces the supply on the market. Those developers who already have land plots with the right functional purpose can continue to work. However, such plots are critically small even for the current demand. And after the war is over, the need for housing will increase significantly,” emphasizes Melnyk.
To avoid a housing shortage, developers and the government should work together to simplify procedures and create conditions for the stable development of the market.
