Traditionally, the cost of rent increases at the beginning of the school year, and 2024 was no exception. But now, even with slightly higher prices, there are not enough decent options for everyone. Today we will tell you more about the rental market in Ukraine, but let's start with the government resolution, which after several years may add a significant number of properties for sale and rent.
The Cabinet of Ministers welcomes foreigners: permission for large-scale construction
The impact of war the real estate market in Ukraine turned out to be not as terrifying as we thought in the first months after the full-scale invasion. National construction companies and developers quickly coped with the shock and continue to actively fight against the complicated conditions in order for investors to receive their properties on time. Our domestic market has proven to be so reliable, promising, and resilient that even foreign companies now view it as a tasty morsel. If on March 13, 2022, the changes in the resolution of the Cabinet of Ministers of Ukraine No. 314 were not noticed because the bright future was overshadowed by the constant explosions of the present, now foreign organizations operating in Ukraine through permanent representations or separate units have started to obtain rights to conduct economic activities and build new facilities. In particular, the Cabinet's resolution gave foreigners the green light for construction:
- residential buildings up to 5 floors high;
- Multifamily residential buildings taller than 100 meters;
- industrial facilities;
- kindergartens;
- school;
- colleges;
- universities;
- hospital;
- shopping and entertainment centers;
- other public buildings.
To obtain a construction permit, it is sufficient to apply to the licensing authority and submit a declaration. This simplified procedure should attract promising foreign companies to cooperate with Ukraine.
The relationship between supply and demand in the rental market
Foreigners have not yet had time to build new residential complexes, so we have to make do with what is available. By the summer of 2024, the number of rental offers in the western and central regions has significantly increased, but not everywhere. Some areas are going against the general trend.
- Kyiv Oblast and Kyiv, where the number of advertisements decreased by 13%, as a result, at least three applicants are claiming each available property;
- Lviv region, which is of interest to about 7 people for each object;
- Dnipropetrovsk region, where there are about 8 potential tenants per apartment.
- Ternopil region has increased demand to 26 people at the site.
- The Odessa region is considering 32 applicants for one house.
- Vinnytsia region is breaking all records because 40 people can respond to one announcement.
If we consider not only the summer, but the annual progress, the greatest reduction in sentences was observed in the Mykolaiv (54%), Kirovohrad (58%), and Poltava (61%) regions.
At rental market the simple rule applies - the fewer offers, the higher the demand, and the higher the demand, the higher the prices. This unwritten truth is already evident in the Chernivtsi, Zhytomyr, and Khmelnytsky regions, where the most active price growth has been recorded in the last month. Traditionally, the leaders with the highest monthly rent remain Kyiv and Dnipropetrovsk.
- The average price in Kyiv is 18,000 UAH (min - 9,500 UAH in Desnianskyi district, max - 23,500 UAH in Pechersk district).
- In Dnipropetrovsk region, the rent costs 15,270 UAH.
If you are considering investing for profit, it's time to move from considering Venice and Lisbon to the native capital.