The demand for primary housing in Ukraine has still not recovered to pre-war levels and stands at only about 20% of the figures before the full-scale invasion of the Russian Federation. Real estate market experts explain this dynamic by a number of factors, including the complex geopolitical situation and the slowdown in construction rates and the commissioning of new facilities.
This is reported by Business • Media
Impact of Construction Delays on the Market
According to analysts, delays in the delivery of residential complexes currently average between 18 to 24 months. This applies to most new constructions, regardless of their location or class. In comparison, before the war, the average delay was only 6-12 months. This situation significantly reduces buyers’ trust in developers and restrains investments in the primary market.
“The weighted average delays in the market now reach 18-24 months. This applies to any residential complex. You need to add a year and a half to the date they promise you. Before the war, this figure was 6-12 months. This does not motivate people to bring money to the sales department,” experts say.
Psychological Factors and Changes in Demand
Additionally, specialists emphasize the psychological impact of the constant uncertainty caused by events on the front and in the world. Periods of energy attacks by the Russian Federation on Ukraine consistently lead to a decrease in buyer activity and further market instability.
Despite all the difficulties, one-bedroom apartments with an area of 45-50 square meters are currently in the highest demand in the primary market. The exposure time for such housing averages between one and three months, which is half as long as for other types of apartments, which typically sell within 3-6 months.
Experts emphasize that while there are buyers, they approach the selection of new constructions thoughtfully and prefer liquid residential properties that guarantee a safe investment of funds.