House prices in Kiev were down 5.77% during the year to Q1 2022
Secondary market apartment prices in Kiev fell by 5.77% (inflation-adjusted) during the year to Q1 2022 with an average price of US$ 1,102 per square metre (sq. m.), in contrast to a 3.09% y-o-y increase in Q1 2021. On a quarterly basis, real house prices fell by 1.81% in Q1 2022.
Ukrainian house prices are expected to continue falling sharply in the medium term. The war has resulted in Europe’s biggest refugee crisis since World War II, with more than 6.7 million Ukrainians fleeing the country and a third of the population displaced.
Ukraine’s house prices have been generally falling in the past eight years, particularly in 2014 because of hryvnia devaluation due to the Russian war. Currently, house prices are about 77% (inflation-adjusted) below their Q3 2008 peak of US$3,627 per sq. m, according to S&V Development.
Rents, rental yields: yields are high in Kiev at 9.09%
Kiev apartment costs are around €2,807 per sq. m.
|Ukraine: typical city centre apartment buying price, monthly rent (120 sq. m)|
|Buying price||Rate per month||Yield|
Recent news. The economic outlook is now very pessimistic. The World Bank expects Ukraine’s economy to plunge by 45.1% during 2022, though the magnitude of contraction depends on the duration and intensity of the war. Critical export routes via the country’s Black Sea ports in Odessa and Mariupol have been interrupted. Odessa is under blockade by Russian naval forces while Mariupol has been devastated by the Russian bombardment.
While there were tensions between the two countries for a long time, the situation started to get out of control last year when Ukrainian President Volodymyr Zelensky urged the U.S. to let Ukraine join North Atlantic Treaty Organization (NATO). This is not the first time that Russia-Ukraine tensions have reached a boiling point. In 2014, Russia invaded and subsequently annexed Crimea from Ukraine.