Even in times of crises, real estate in Kyiv remains a profitable investment
Everything has changed: first, potential buyers are no longer confident about the future, so they postpone the purchase indefinitely. Second, developers, lacking financing from investors and shareholders, panic, stop construction, and whisper about bankruptcy. And while the primary market is stormy, the secondary market is still alive but on life support: since the start of the quarantine, the number of closed deals has halved, but apartment owners are in no hurry to lower prices.
The era of online and the secondary housing market
Surprisingly, the traffic of online catalogs and real estate databases is off the charts. Specialists at Park Lane Real Estate Agency believe this is a good sign, indicating the market's potential. In the quarantine year, buyers have time to consider options, evaluate the property through photos, check reviews, ask questions – so they are using it.
Everything is explainable: a person wants to decide in a calm environment, then come, inspect, touch the finished product, and only then make a decision. Trusting the developer's word is not an option. After all, it's 2020, a pandemic, and what will happen in 2022 when the first phase is completed, who knows? An alien invasion?
Situation by districts of the capital
The detection rate of coronavirus has not affected the ranking of Kyiv districts. Traditionally, the most expensive, prestigious, and desirable is Pechersk, while the cheapest one-room apartment – from $35,000 – can still be bought in Desnyansky or Svyatoshynsky districts.
Price range for one-room apartments listed for sale on the website parklane.ua in some districts of Kyiv: Holosiivskyi district, Kostanayska St. (42 sq.m) – UAH 1.596 million Darnytskyi district, Dragomanova St. (43 sq.m) – UAH 1.682 million Dniprovskyi district, Khotkevycha St. (52 sq.m) – UAH 1.710 million Obolonskyi district, Kalnyshevskoho St. (55 sq.m) – UAH 2.508 million Pecherskyi district, J. McCain St. (42 sq.m) – UAH 2.993 million Podilskyi district, Degtyarna St. (47 sq.m) – UAH 2.366 million Shevchenkivskyi district, Peremohy Ave. (49 sq.m) – UAH 4.703 million
It is one-room apartments that enjoy non-zero demand – and this is also a sign of crisis, because this format is bought to rent out and generate income, not for living. The decline in interest in two-room apartments precisely means that young families are postponing their own housing until better times.
Despite the fact that back in spring 2020 some experts predicted a gradual price decline and demand growth for autumn, the opposite happened: prices crept up by an average of 7-10%, while demand remained where it was. Buyers are waiting.
Although, perhaps, now is the best time to buy an apartment on the secondary market. According to a ranking by the British bureau Knight Frank Group, Kyiv shows enviable price growth for residential real estate. Thus, over the year from June 2019, housing prices in the capital rose by 11.2%, which is much more than, for example, in Berlin (4.9%) or Budapest (9.8%). There is every chance that Kyiv will join the leaders of the ranking – Turkish cities, where prices increase annually by 20-25%.