In 2025, interest in business-class apartments in the primary real estate market of Kyiv significantly increased. The share of such transactions rose to 20-22%, whereas in 2023, this figure did not exceed 10%. The average cost per square meter in new business-class residential complexes currently stands at around 1,700 USD. At the same time, most transactions are made by buyers looking for housing for themselves rather than for investment purposes.
This is reported by Business • Media
Shortage of New Housing Drives Price Increases
Market experts note that the rapid rise in apartment prices in Kyiv is linked to a prolonged shortage of new constructions that has developed since the events of February 2022. Development companies are hesitant to start new projects: currently, only one new project is launched for every five completed residential complexes. The reasons lie in a lack of funding, a shortage of skilled labor, and rising construction material costs. This leads to a situation where the volume of new housing cannot keep pace with stable demand.
“For every five completed complexes, only one new project is initiated, which poses a threat of housing shortages in the next three to five years. If demand remains relatively stable, supply cannot recover: developers are reluctant to take risks due to limited funding, labor shortages, and rising material costs. In such a situation, prices increase almost inertially – on average by 15-25% annually, regardless of seasonality or inflation fluctuations,” experts explain.
Forecasts indicate further increases in housing prices. This winter, a price increase of another 5% is expected, depending on the location of the complex, the degree of readiness, and the availability of infrastructure.
The Secondary Market Remains Popular
Despite the growing interest in new constructions, a significant portion of Ukrainians still opts for what is known as the “secondary market.” According to research, 61% of potential buyers consider both new apartments and already completed housing. Only 14% focus exclusively on the primary market, while 24% prefer only ready apartments. The main reason for the popularity of secondary real estate is the ability to move in quickly without waiting for construction to finish or incurring additional renovation costs.
In cities such as Lviv, Ivano-Frankivsk, Uzhhorod, and Kyiv, the secondary market consistently enjoys high demand due to the quick availability of housing for new residents.