Prices in primary housing market in Kyiv in Q3, 2019 exceed pre-crisis level

The average price of primary housing in Kyiv in July-September 2019 increased by 15% compared to the end of 2018 and amounted to $1,388 per square meter, thus exceeding the pre-crisis level of 2014.

"In the third quarter, developers raised prices for primary residential real estate both in hryvnias and in dollars. The average market price rose by 7.1% over the quarter, to $1,388 per square meter, and exceeded the average market price at the end of 2014," Olena Shirina, an analyst of City One Development, a full-cycle development company, said.

According to her, the rise in market prices in the third quarter of 2019 was facilitated by the continued strengthening of the hryvnia exchange rate to UAH 24.2/$1 at the NBU rate. Thus, the hryvnia reached the level of mid-2016, having strengthened since the beginning of the year by 13%, while prices for primary housing since the beginning of 2019 have grown by 15%.

"Against this background, less new residential complexes were brought to the market during the year: in the first quarter some 16 new complexes were commissioned, in the second quarter nine, and in the third – only six," City One Development noted.

The expert said the higher is the class of the residential complex, the more restrained is the dynamics of price growth, since the high class of real estate traditionally holds the price bar regardless of the exchange rate and other market factors and is least affected by fluctuations. Thus, the cost of one square meter in the economy segment in September 2019 increased by 16.8% compared with the end of 2018, to $875. Prices in comfort class housing for this period rose by 15.4%, to $1,004, in the business class by 14.6%, to $1,770, and the slowest price increase was observed in elite and premium classes by 5.8%, to $2,953.