In Ukraine, there is an increase in demand for residential real estate following a significant decline caused by the full-scale war. The Ukrainian Association of Developers notes that along with the gradual recovery of the market, the behavior of potential buyers has changed significantly.
This is reported by Business • Media
Impact of News from the Front on the Real Estate Market
The main factor determining the dynamics of housing demand has been news from the front. Positive news almost instantly boosts buyer activity and leads to an increase in the number of actual transactions. Conversely, negative information can quickly “cool” demand, even if economic conditions remain stable or improve. This is because most buyers today are looking for housing for their own residence rather than as an investment or part of a long-term financial strategy.
“Positive signals almost instantly activate potential buyers, resulting in a noticeable increase in actual transactions. Any negative news can quickly ‘cool’ demand regardless of economic factors.”
Changing Priorities and Financing Purchases
A significant portion of potential buyers no longer considers traditional mortgages as the primary means of financing due to high interest rates and limited availability of credit products. Currently, most transactions are made using personal savings or installment plans from developers.
Despite the gradual increase in activity in the housing market, the total number of purchases has still not reached the level it was at before the onset of the full-scale invasion. For further stable recovery of demand for residential real estate, a clear signal of prolonged stabilization of the security situation in the country will be a key factor.
At the same time, experts from the Ukrainian Association of Developers warn of a potential supply shortage crisis if the situation stabilizes. This is due to the fact that a significant number of new projects have been postponed due to high risks, rising construction costs, and limited demand in previous periods.