After a two year break, Kyiv Post has relaunched their real estate magazine for brick investors with interest in Ukraine.
Despite the past years ups and downs in almost all sectors of the economy, real estate is still a very real thing in Ukraine. According to Kyiv Post, office space, shopping malls and housing is still in high demand.
In short, developers are still building and people are still buying, so that is why the Kyiv Post has launched their fifth Real Estate edition, where they assess the market after a recession and the conflict with Russia.
Moreover, the Real Estate edition poses the question. Is real estate pandemic proof? According to the Kyiv Post, Ukrainians took up 36 percent more mortgages than in 2019, indicating that the answer is yes.
Interest from abroad
Another article claims, that now is the time for investing in real estate. The price per square meter in downtown Kyiv is still pretty low. On average, one square meter goes for around 1000 USD, while the price is twice as high in neighbouring Poland.
In Paris, for comparison, one square meter will cost you 12,000 USD, while a square meter in Copenhagen can easily be that or higher. There is still one drawback to investing in Ukraine, however.
The rule of law in the country is still being criticized heavily, and making sure that the seller can actually sell the apartment legally is worth looking into. A lot of property owners can still have claims on the property.
Specifically interesting right now
Four walls have always been one of the most basic and common investments, but right now is an especially interesting period to look into the real estate business. For a year, privatization of state property has been on hold.
The government stopped selling off the companies and properties, when the pandemic hit in 2020, but recently they picked it up again. Recently, the most intriguing piece of property for sale has been the Irpin Correctional Center.
Selling the prison has been tried before, but with no luck. The same thing goes for a lot of the larger properties for sale in the country. Still, business and government are generally on the same page. Both parties want the properties made available for private companies.
The Ukrainian state has a lot of companies in a lot of sectors, where the state usually does not belong in a free market economy. For instance, the Ukrainian state has been running hotels in Kyiv.
From weapon manufacturing to coal mining to hospitality, the state economy is broad in Ukraine – a remnant of the Soviet Union, where communism placed the economy in the all incompetent hands of central planning comities.
When the Soviet Union collapes and Ukraine was trying to consolidate as a state, some of these state companies were given to people or sold at gift-like prices to the oligarchy of Ukraine.
Other companies stayed in the possession of the state, but following the collapse of the Soviet Union, Ukraine did not have the funds to keep investing in companies to prepare them for the open world market.