Ukraine’s Real Estate Market Outlook: Rental Prices and Property Costs Continue to Rise Amid Evolving Market Dynamics
The real estate market in Ukraine is undergoing rapid changes driven by various factors, and this trend is expected to persist for at least the next few years.
Rental prices in major cities continue to soar, presenting new challenges and opportunities for residents and investors alike.
The rise in property costs is primarily fueled by increasing prices for construction materials, a shortage of new development projects, and heightened demand in regions perceived as safer.
According to analysts, the average monthly rental fee for a one-room apartment in Kyiv has reached around 20,000 UAH, while in Uzhgorod, this figure exceeds 20,800 UAH.
Experts highlight that this upward trend in prices is likely to continue, especially as young people seek comfortable living conditions with security, infrastructure, and modern renovations.
Regional rental prices are significantly lower but are also gradually climbing, indicating an ongoing global trend.
The main driver of this price increase remains the surge in construction material costs — since the start of the full-scale war, prices for cement, metal, insulation, and other resources have risen by 35-45%, despite supply chain difficulties.
Additionally, there is a decline in new project launches; many developers have suspended or curtailed their activities due to high risks and market unpredictability.
Internal migration towards safer regions such as Kyiv, Lviv, Ternopil, and Ivano-Frankivsk further stimulates price growth in these areas.
However, many experts do not anticipate a significant rapid escalation in property prices soon, citing Ukrainians’ limited purchasing power and a more than 3% decrease in demand for apartments over the past year.
Overall, Ukraine’s real estate scene remains complex: on one side, increased demand and rising property costs; on the other, constrained consumer capacity and economic uncertainty, potentially restraining substantial long-term growth in prices.