Construction and sale of residential complexes resume in Ukraine, but Kyiv recovery slow

To what extent housing construction and its sales resumed by the end of June - LUN data
To what extent housing construction and its sales resumed by the end of June - LUN data

On average, 75% of residential property developers in Ukraine have resumed work on construction sites, while 82% have relaunched sales, according to July 2023 statistics from the LUN housing rental and purchase service.

These figures demonstrate a positive trend compared to the end of 2022, where only 69% of complexes were active in construction.

Read also: Trends and prospects of Kyiv’s housing market

The western and central parts of Ukraine are leading the way in resuming construction work, boasting 88% to 96% of active construction sites. In contrast, the city of Kyiv and Kyiv Oblast show a slower recovery, with 62% and 68% of residential complexes resuming construction, respectively.

Kharkiv Oblast, Mykolaiv Oblast, and Zaporizhzhya Oblast show low rates of construction work recovery – 19%, 35%, and 32%, respectively.

Read also: Damage to housing stock in Ukraine totals over $54 billion

On July 25, some 82% of new buildings out of the 1,772 projects that were on sale before the full-scale invasion are available for purchase. This rate is consistent with June's data. This marks the highest percentage since Feb. 24, 2022.

Sales are most active in western Ukraine, namely Zakarpattia, Ivano-Frankivsk, and Lviv oblasts, with 98%, 97%, and 94% of residential complexes being on sale, respectively. Other oblasts like Cherkasy, Kirovohrad, Zhytomyr, and Vinnytsia also show strong sales, with over 90% of open sales.

In the capital city, Kyiv, and its surrounding oblast, sales are at 79% and 80%, respectively. However, Mykolaiv Oblast (67%), Zaporizhzhya (40%), and Kharkiv Oblast (19%) have lower rates of housing units available for sale.

Remarkably, some developers managed to complete sales during the ongoing full-scale war. LUN data indicates that 218 residential complexes were sold across Ukraine, with the highest number in Lviv Oblast (46), followed by Kyiv and its oblast (20 and 25, respectively), as well as Odesa (23), Ivano-Frankivsk (20), and Zakarpattia (14) oblasts.

Read also: Rent in Kyiv considerably cheaper than in west of Ukraine, research shows

Earlier reports, citing the National Bank of Ukraine, highlighted that house renting remains a more profitable option for housing due to inflated housing prices.

We’re bringing the voice of Ukraine to the world. Support us with a one-time donation, or become a Patron!

Read the original article on The New Voice of Ukraine