House prices in Ukraine continue to rise, driven by elevated construction costs and a limited supply of new housing.

This extended overview from the Global Property Guide covers key aspects of Ukraine's housing market and takes a closer look at its most recent developments and long-term trends.

Table of Contents

• Housing Market Snapshot
• Demand Highlights
• Supply Highlights
• Rental Market
• Mortgage Market
• Socio-Economic Context

Housing Market Snapshot

According to the State Statistics Service of Ukraine (Derzhstat), the House Price Index for the primary market segment increased by 15.72% year-on-year in Q4 2024, or 3.33% in real terms after adjusting for inflation. In comparison, prices in the secondary market rose more modestly by 11.92% over the same period, effectively stagnating in real terms with a marginal inflation-adjusted decline of 0.06%.

Ukraine's house price annual change:

Data from LUN as of March 2025 shows that Lviv recorded the highest average price in the primary housing market at USD 1,330 per square meter, marking a 1.53% year-on-year increase. Kyiv followed at USD 1,280 per square meter (+4.07% year-on-year), with Uzhhorod ranking third at USD 1,150 (+4.55% year-on-year).

When compared to pre-war levels, since March 2021, the most significant growth in primary market prices occurred in Ukraine's western regions. Ivano-Frankivsk led with a 98% increase, followed by Lviv (+66%) and Uzhhorod (+58%). As noted in a housing market review by Hromadske, this growth is largely attributed to security-related migration patterns: "The security factor is driving up housing prices in regions where shelling is irregular and the air defense system is effective. In frontline cities and towns, the opposite trend is occurring <…> The result is an expensive West and a cheap East."

LUN analysts cite several contributing factors to the ongoing price growth in the primary market, including constrained new supply, rising construction material costs, labor shortages, increasing industry wages, and the weakening of the national currency.

Average price per square meter for primary market apartments in selected markets:

Kyiv, Lviv, and Uzhhorod also registered the highest prices in the secondary housing segment. Notably, average asking prices for one-bedroom apartments in Lviv surpassed those in Kyiv, reaching USD 65,000 (+4.84% year-on-year), while in Kyiv the same segment declined by 1.56% year-on-year to USD 63,000.

"In frontline regions, the war continues to depress the value of secondary housing due to persistent security risks," notes LUN. "In major cities in central and southern Ukraine, such as Kyiv, Dnipro, Odesa, and Zhytomyr, supply is increasing - driven in part by property owners who have not returned to the country. In the western regions, demand remains strong as many residents have stayed and have a longer planning horizon."

Average price per unit for secondary market apartments in selected markets:

Looking ahead, most forecasts anticipate further price growth, particularly if the security situation improves. This expectation is prompting many prospective buyers to accelerate their decision-making to avoid higher future costs. The 2025 state budget anticipates a devaluation of the hryvnia to 45 UAH per USD, a key factor expected to push housing prices upward. "In the primary market, the cost per square meter is traditionally tied to the dollar exchange rate," explains Marianna Bighunets of the Gazda construction company.

Gazda expects prices in the primary market to rise by at least 20% in 2025, with some high-demand projects potentially increasing by 25-30%. Meanwhile, Perfect Group offers a more conservative outlook for the country's capital, projecting a 5-10% increase in Kyiv's primary market by year-end, and a 7-10% increase in the secondary segment by the end of 2025.

Analysts from OLX also expect further price growth, driven by the expansion of the state mortgage program "eOselya," a rising dollar exchange rate, increasing construction and labor costs amid ongoing labor shortages, and a possible rise in housing transaction taxes.

Demand Highlights:

Market Sentiment Improves Slightly but Pre-War Activity Levels Remain Distant

Demand in Ukraine's second-hand residential market is showing signs of a slow recovery. According to the latest annual report from the Ministry of Justice of Ukraine, which compiles data from public and private notaries, 178,439 purchase and sale agreements for apartments and residential buildings were registered in 2024 - up 3.36% compared to the previous year. Despite this moderate growth, overall transaction volumes remain 45.15% below the pre-war level of 2021.

Commenting on this trend, analysts at LUN observed: "In 2024, the Ukrainian secondary market not only continued to adapt to difficult conditions but also began to gradually regain momentum. Activity among both buyers and sellers is rising, and most key indicators show year-on-year growth - even though no transactions were recorded in the final two weeks of the year due to a hacker attack on state registries."

Data Source: Ministry of Justice of Ukraine.

Kyiv led the country in secondary market activity, with 34,138 residential transactions registered -representing a 5.77% year-on-year increase. It was followed by Dnipropetrovsk Oblast with 18,176 transactions (a 3.80% decline year-on-year), and Kyiv Oblast with 13,977 transactions (14.45% increase year-on-year). Other major hubs of market activity included Odesa Oblast, Kharkiv Oblast, and Lviv Oblast. "The factor of protection and security still remains perhaps the most important when choosing a home," emphasized Marianna Bighunets, Sales Director at construction company GAZDA.

Top 10 regions with the highest number of residential sales contracts registered:

An emerging trend in the secondary housing market is a significant rise in the number of apartments transferred through gift agreements. In 2024, 158,600 apartments changed ownership via donation - the highest figure in the past five years. For comparison, 106,600 such transactions were recorded in 2020, 129,800 in 2021, 48,500 in 2022, and 80,300 in 2023. This 97.5% year-on-year surge is likely driven by two main factors: the increased use of tax optimization strategies - since tax liabilities in gift transactions shift to the recipient rather than the seller - and the logistical need to transfer ownership in cases where multiple co-owners are unable to complete a traditional sale, such as individuals serving in the military or residing abroad.

Meanwhile, activity in the primary residential market remains subdued. According to a LUN survey cited by the National Bank of Ukraine (NBU), the number of new-build purchase agreements in early 2024 remained virtually unchanged from the previous year and accounted for less than one-fifth of the pre-war volume. The NBU noted that primary market sales are unlikely to have improved significantly since then. "Purchases on the primary market are still seen as quite risky, both because of long-standing problems and a lack of transparency in the market, as well as because of high security risks," the Bank commented.

Looking ahead, housing market activity is expected to continue its upward trend, albeit slowly. As stated in the NBU's December 2024 Financial Stability Report: "Household incomes are continuing to recover, but demand on the real estate market is unlikely to grow commensurately. The persistence of war risks will restrain demand, while the mismatches between supply and demand parameters will curb the growth in the number of deals."

Igor Syrovatko, Director of the Customer Service Department at OLX Ukraine, Kazakhstan, and Uzbekistan, also emphasized the central role of security in shaping market dynamics. "The end of the war or even a 'forecast scenario' a year in advance can stimulate interest in buying housing. Reducing the risk of escalation will increase investor activity. Stability may also encourage Ukrainians who have left abroad to return and invest in their own housing. Improving lending conditions has already begun, but in 2025 this factor is likely not yet decisive," he noted.

Supply Highlights:

New Housing Completions Rise Despite Continued Sector Pressures

According to data from Derzhstat, a total of 118,452 new dwellings were completed in Ukraine in 2024 - an increase of 32.71% year-on-year and the highest annual figure recorded since the onset of the full-scale invasion. "The data shows that, despite persistent challenges, Ukrainian developers continue to increase construction completions. In a year marked by power outages, inflation, logistical disruptions, and labor shortages, the construction sector is showing steady growth. This reflects a gradual, albeit difficult, adaptation to complex market conditions," commented Olena Unanyan, Director of Business Development at LUN.

Of the completed dwellings, 70% were located in apartment buildings, representing a 25.05% year-on-year increase. The remaining 30% were one-dwelling buildings (detached houses), which saw a more substantial rise of 54.73% compared to the previous year.

Data Source: Derzhstat.

Regionally, Kyiv led in the number of completed dwellings with 22,082 units - a 51.10% increase year-on-year. It was followed by Kyiv Oblast with 21,108 units (+32.73%) and Lviv Oblast with 12,627 units (+46.23%).

Top 10 regions with the highest number of dwellings completed:

Forward-looking indicators suggest continued moderate growth. As of the end of 2024, the number of dwellings started reached 69,294 units, reflecting a modest 3.69% increase after a sharp 32.07% decline in 2023. Starts in the detached housing segment rose by 37.60% year-on-year, reaching 28,354 units - the highest level since 2018. In contrast, starts in apartment buildings fell to 40,940 units, marking an 11.43% year-on-year decline and the lowest figure in the past seven years.

Data Source: Derzhstat.

Kyiv Oblast led the country in new construction activity in 2024, with 15,786 dwellings started, up 25.39% year-on-year. Lviv Oblast followed with 10,454 starts (a 5.17% decline), while Ivano-Frankivsk Oblast recorded 6,129 starts (an 11.52% decline). Meanwhile, new construction activity in the capital city of Kyiv continued to decrease for the second consecutive year, with just 2,920 new dwelling starts in 2024, down from 3,383 in 2023 and 12,133 in 2022.

The residential construction sector remains one of the hardest-hit industries since the start of the full-scale war, operating under conditions of elevated uncertainty, rising costs, and persistent supply chain and labor disruptions. Acute shortages of construction materials, workforce deficits, and logistical challenges continue to constrain activity, compounded by widespread damage to housing and infrastructure. Looking ahead, the NBU expects the pace of new housing supply to remain slow, with most new developments concentrated in the western regions. It also cautions that "the risks of a shortage of new high-quality housing remain."

Rental Market:

Resilient Demand Drives Price Growth Amid Ongoing Uncertainty

Since the onset of the full-scale invasion, Ukraine's rental housing market has shifted notably toward the demand side. This trend has been driven by the displacement of populations from frontline areas to relatively safer cities, work-related relocations, and evolving household needs, including the demand for independent housing. These factors have contributed to a notable acceleration in rental inflation. In 2024, the rent component of the consumer price index - measured by the cost of renting a one-bedroom apartment - substantially outpaced overall consumer inflation, which stood at 6.5% in December, according to Derzhstat.

Data Source: Derzhstat.

Data from LUN highlights that as of March 2025, Kyiv, Lviv, and Uzhhorod recorded the highest average rental prices for residential properties. Notably, Uzhhorod surpassed Kyiv in the segment of one-room apartments, with an average monthly rent of UAH 18,200 (USD 439), marking an annual increase of 18.95%. In Kyiv, the same type of apartment averaged UAH 17,000 (USD 410), representing a 21.43% year-on-year rise.

Average apartment rents in selected markets:

Despite the rising cost of rent, demand remains robust, as reflected by the declining average listing period for apartments. In March 2025, properties in Kyiv were rented in an average of six days, compared to eleven days in January 2023, according to LUN. Experts at the platform note, "The rental market is currently the most resilient: demand remains strong, rental rates are climbing, and vacancy durations are shortening."

Research from OLX Ukraine indicates that in 2024, tenants prioritized price, location, and proximity to transport or workplaces when selecting housing. However, additional factors such as autonomous power sources, floor level, independent heating systems, and access to bomb shelters have gained importance.

Reflecting the upward pressure on rents, gross rental yields averaged 7.43% across Ukraine in February 2025, according to the Global Property Guide research. Among the regional markets tracked, Dnipro led with a yield of 10.38%, followed by Kyiv (8.14%) and Lviv (7.64%). Yields above 7% were also recorded in Khmelnytskyi (7.34%) and Ivano-Frankivsk (7.25%). In contrast, yields in Odesa and Kharkiv were somewhat lower, at 5.90% and 5.32%, respectively.

OLX Ukraine anticipates continued growth in the rental market, supported by ongoing internal migration and heightened uncertainty that is prompting many potential buyers to opt for renting instead. "Amid reduced supply, increased demand is expected to push rental prices higher, particularly in central and western regions," OLX researchers commented. LUN analysts also suggest that rising rental rates observed throughout 2024 could stimulate investment interest in residential property. "Potential sellers may consider transitioning into landlords. Developers may also recognize new opportunities in the rental segment, offering a dedicated portfolio of ready-to-rent apartments," they noted.

Mortgage Market:

Lending Rebounds on eOselia's Targeted Support

Ukraine's mortgage loan interest rates:

Note: Weighted Average interest rate for secondary market mortgages.

After peaking at 25.00% between June 2022 and June 2023, the NBU's key rate was gradually reduced, reaching 13.00% in November 2024. In December, however, the rate was raised slightly to 13.50%, followed by further increases to 14.50% in January 2025 and 15.50% in March 2025. At its March 2025 policy meeting, the NBU cited the need "to support the attractiveness of hryvnia savings, maintain the sustainability of the FX market, and keep inflation expectations in check, which will allow bringing back the steady disinflation trajectory toward the 5% target." The central bank also noted its readiness to implement additional monetary measures if risks to price stability and inflation expectations continue to increase.

Data Source: NBU.

The earlier cycle of key rate reductions is reflected in declining interest rates on new real estate loans. According to the NBU data, the weighted average effective interest rate on new mortgages reached a low in May 2024, falling to 7.20% for the primary housing segment and 7.63% for the secondary segment. By January 2025, these rates had edged up slightly in response to monetary policy changes but remained significantly below the peaks recorded in April 2023 - 27.00% for primary and 14.13% for secondary housing loans.

Effective interest rates on the new mortgage loans to individuals, monthly weighted average:

Falling mortgage rates supported a recovery in housing loan activity. In 2024, new lending for the purchase, construction, and reconstruction of real estate increased substantially. The NBU reported UAH 14.88 billion (USD 37.06 million) in new mortgage issuance between January and December 2024, marking a 62.38% year-on-year increase. Of the total volume, 91.5% was directed toward secondary market properties.

Data Source: NBU.

The NBU notes that mortgage lending remains concentrated within the framework of the eOselia program, with limited lending taking place outside of it. Launched in 2022, the program is designed to provide affordable mortgage options to key societal groups. It offers a 3% annual interest rate for military personnel, law enforcement officers, doctors, teachers, and scientists. Other eligible groups - including internally displaced persons (IDPs), veterans, and individuals without housing - can access financing at a 7% interest rate. According to LUN, nearly 14,500 mortgage loans totaling UAH 23.3 billion had been issued through eOselia since the beginning of its operation as of the end of 2024.

Recent enhancements have expanded the program's reach. In August 2024, the required down payment was reduced from 20% to 10% for borrowers under the age of 25 to promote youth participation. In September 2024, the government allowed eVidnovlennia certificates to be used as mortgage down payments, extending access to citizens whose homes were destroyed or remain in occupied territories. As of October 2024, IDPs and their families became eligible to purchase homes up to 10 years old in participating regions, up from the previous limit of 3 years. The same eligibility was extended to veterans and key professionals in war-affected regions, including Chernihiv, Sumy, Kharkiv, Zaporizhzhia, and Kherson.

As of January 2025, the gross value of outstanding mortgage loans issued to individuals reached UAH 35.157 billion (USD 83.49 million), reflecting a 38.09% year-on-year increase. Driven by macroeconomic conditions, geopolitical factors, and the hryvnia-only nature of the eOselia program, the share of loans denominated in local currency rose significantly - 89% as of January 2025, compared to 61% in January 2022 and 45% in January 2021.

Data Source: NBU.

Socio-Economic Context:

Fragile Economic Recovery Amid Continued Uncertainty

Ukraine's macroeconomic environment reflects a cautious recovery, shaped by ongoing war-related disruptions and structural vulnerabilities. The IMF projects real GDP growth of 3.5% year-on-year in 2024, down from 5.3% in 2023. The recovery is hindered by the challenging security situation, a shortage of skilled workers, and continued damage to energy infrastructure. Growth is expected to slow further in 2025, ranging between 2% and 3%, primarily due to reduced exports and increased imports of raw materials, driven by the closure of the Pokrovsk mine and infrastructure damage. For 2026, GDP growth is projected at 4.5%, reflecting the continuous effects of reduced coal production on net exports and delayed migrant returns. However, as these challenges begin to ease, 2027 GDP growth is expected to rise to 4.8% year-on-year.

Inflation accelerated for the first time since autumn 2022, reaching 12.0% in December 2024, up from 5.1% in December 2023. The hike was primarily driven by a dry summer, weak harvest, rising energy and fuel costs, and higher labor expenses. The IMF projects inflation in the country to reach 9.0% year-on-year by the end of 2025, influenced by recent increases and ongoing inflationary pressures. Base effects remain a key factor. The IMF noted: "As food prices fell in the first half of 2024 and rose sharply in the second half, base effects are likely to drive inflation in the opposite direction in 2025, assuming the harvest meets or exceeds 2024 levels. An appropriate monetary policy, by anchoring expectations, would also help curb inflationary pressure."

Data Source: IMF.

According to the IMF, the unemployment rate in 2024 decreased to 14.2%, down from 19.1% in 2023 and 24.5% in 2022. Despite this decline, the labor market remained imbalanced. While numerous job vacancies were available, high unemployment persisted, signaling structural issues. Labor shortages emerged as a significant challenge for businesses, intensifying competition among employers and contributing to real wage growth, surpassing pre-war levels.

Data Source: IMF.

Following the National Bank of Ukraine's (NBU) shift from a fixed to a flexible exchange rate in 2023, the hryvnia has continued to depreciate gradually. By December 2024, the official exchange rate reached 41.75 UAH per USD, reflecting a 10.26% decline from January 2024, when the rate stood at 37.87 UAH per USD. The Centre for Economic Strategy remarked: "In light of the ongoing conflict and budget deficit, this level of devaluation can be considered relatively moderate."

Data Source: NBU.

Ukraine remains heavily reliant on external funding from international partners to bolster its defense and sustain its economy amid ongoing conflict. According to the Centre for Economic Strategy, in 2024, the country received USD 41.6 billion in external budgetary support. In June, G7 leaders approved a USD 50 billion loan through the Extraordinary Revenue Acceleration Loans for Ukraine (ERA) mechanism, to be repaid from the future proceeds of frozen Russian assets.

The overall macroeconomic outlook for Ukraine continues to be highly uncertain, with significant risks to program scenarios stemming from the ongoing conflict, international support, and the pace of reforms. "Contingency planning is essential to ensure that appropriate policy actions can be taken should these risks materialize," commented Ms. Kristalina Georgieva, Managing Director of the IMF, following the latest Executive Board discussion on Ukraine.

Sources:

1. Government of Ukraine
   1. Down Payment Under the eOselia Program for Citizens Under 25 Reduced to 10%: Prime Minister: https://www.kmu.gov.ua/
   2. eOselia Becomes More Affordable For Citizens: What Rules Have Come Into Force: https://www.kmu.gov.ua/
   3. eOselia: Ukrainians Took Out UAH 20 Billion In Housing Loans: https://www.kmu.gov.ua/
2. State Statistics Service of Ukraine (Derzhstat)
   1. Housing Market Price Changes: https://stat.gov.ua/
   2. Start and Completion of Construction Indicators: https://stat.gov.ua/
   3. Changes in Prices (Tariffs) for Consumer Goods (Services): https://stat.gov.ua/
3. National Bank of Ukraine (NBU)
   1. Key Policy Rate: https://bank.gov.ua/
   2. Macroeconomic Indicators: https://bank.gov.ua/
   3. Official Exchange Rates: https://bank.gov.ua/
   4. Survey Of Banks On The Volume Of Mortgage Lending: https://bank.gov.ua/
   5. Financial Stability Report, December 2024: https://bank.gov.ua/
   6. NBU Raises Key Policy Rate to 15.5%. Press Release: https://bank.gov.ua/
4. Ministry of Justice Ukraine
   1. Report on the Work of State and Private Notaries, the Ministry of Justice of Ukraine, and its Territorial Bodies in the Field of Notaries (UK): https://minjust.gov.ua/
5. International Monetary Fund (IMF)
   1. Country Overview: Ukraine: https://www.imf.org/
   2. Seventh Review of the Extended Arrangement under the Extended Fund Facility for Ukraine: https://www.imf.org/
   3. Word Economic Outlook Data, October 2024: https://www.imf.org/
6. eOselia Program
   1. Program Overview (UK): https://eoselia.diia.gov.ua/
7. Centre for Economic Strategy
   1. Ukrainian Economy in 2024: Special Edition of the Tracker: https://ces.org.ua/
8. LUN
   1. Housing Market Statistics (UK): https://lun.ua/
   2. Real Estate Market Results 2024 (UK): https://lun.ua/
   3. 178.5 Thousand Apartments Were Sold in 2024 on the Secondary Market in Ukraine (UK): https://lun.ua/
   4. Real Estate Market: Growth for 9 Consecutive Months (UK): https://lun.ua/.
9. OLX
   1. What Was 2024 Like in the Real Estate Market. Digest From OLX Real Estate (UK): https://business.olx.ua/
10. Hromadske
    1. Housing Reflections. Why is Housing Becoming More Expensive in Ukraine, and What Will its Price be in 2025? (UK): https://hromadske.ua/
11. Neruhomist 24/7
    1. In the Turbulence Zone: Results of the Primary Real Estate Market in 2024 (UK): https://kyivschina24.com/