The number of objects in the active stage of implementation in Kyiv region over the year grew by 8.3%, to 221, in the city of Kyiv fell by 4%, to 175, M4U founder Volodymyr Danilenko has told Interfax-Ukraine.

According to analytical data from M4U, in 2023 prices on the primary real estate market have not changed significantly.

"In October 2023, the average cost per square meter of primary real estate in Kyiv is UAH 61,800. This is only 2.2% more than in October last year, and 0.3% less than at the beginning of this year. In Kyiv region, the average price per square meter increased to UAH 32,300, which is 2.3% higher compared to the corresponding period last year and 1.8% compared to the beginning of the year," Danilenko said.

He added that in Kyiv the number of new buildings in the active stage of construction continues to decline: a year ago there were 185, at the beginning of the year 182, now 175. As before, the most residential complexes in the active stage of construction and sales are located in Holosiyivsky (28 residential complexes), Pechersky (27) and Shevchenkivsky (25) districts of Kyiv. The least number is in Desniansky (10), Sviatoshynsky and Obolonsky (11 each) districts. Most offers on the market are in the price range of UAH 36,000–44,000 per square meter, among them the offer of comfort-class apartments traditionally prevails.

"If we look at the graph of price changes throughout the year, we will notice a slight correction in almost all classes. The decrease in the cost per square meter began in March, but in late summer and early autumn prices began to recover to the level at the beginning of the year," Danilenko said.

For example, a square meter of economy class real estate increased in price over the year by 5.2%, to UAH 35,640, but compared to April of this year it fell by 1%.

In the comfort class, the changes are quite insignificant: 1% more for the year and only 0.7% more for six months, being now UAH 45,100. In business class, real estate today costs an average of UAH 73,900 per square meter – 2.2% less than a year earlier, and 6.3% than at the beginning of this year.

In the luxury real estate segment (UAH 142,600 per square meter), prices also continue to decline: by 2% compared to the same period last year, by 2.8% compared to the beginning of 2023. The greatest decrease in this segment was observed in the spring; since then, the price per square meter has risen by 2.9%.

According to Danilenko, the reasons for such a correction are traditional for recent times: a slight change in the exchange rate (affecting part of the supply, where prices are tied to the exchange rate) that came in April-July, the reaction of developers to a decrease in demand during and after the May shocks.

"Last year, the main reason for the rise in prices was the increase in costs and adjustments in project estimates. This year, both currencies and the economic situation in Ukraine as a whole are more stable, and there are no market factors for price growth. Moreover, the vast majority of developers, trying to attract customers, offers larger or smaller discounts on real estate. This leads to periodic price fluctuations, for example in the business and luxury segments, where margins allow such promotions," he said.

The expert said that the market is gradually changing under the influence of wartime realities. The response to an increase in requests for more affordable housing, including renovations, will likely be a reorientation of part of the demand to the nearest suburbs, as was the case in 2014-2015.

In Kyiv region, the number of objects in the active stage of implementation over the year increased by 8.3%, to 221. However, this is even lower than pre-war indicators – in January 2022 there were 263 such objects.

"Participation in the eOselia program helps suburban developers restore work somewhat more actively than in the capital. In Kyiv region there are many more properties that meet the criteria of the program, and due to their more affordable prices they are in great demand, in particular among internally displaced Ukrainians," Danilenko said.

The average price per square meter in Kyiv region increased to UAH 32,300, which is 2.3% higher than the prices of the corresponding period last year and 1.8% higher than the prices at the beginning of the year.

According to M4U research, unlike Kyiv, most real estate segments in the region are showing an upward trend. The only exception is business class, but even there, over the past three months, the cost per square meter has grown, to UAH 35,200 (4.9% less than a year ago, but 3% higher than in July 2023).

A square meter of economy class in the suburbs has risen in price to UAH 28,300, or 5.3% compared to October last year, and over the past six months – by 0.9%. In the comfort class (UAH 31,600), the average price grew by 5.6% over the year, and by 4.1% over six months. In the segment of real estate positioned as elite (UAH 45,800), over the year the price increased by 3.6%, of which by 1.9% over the last six months.

Most apartments are sold in the price range of UAH 26,000–32,000 per square meter. As in Kyiv, most of them belong to the comfort class. The largest number of new residential complexes are being built and sold in Irpin (39 residential complexes), Sofiyivska Borschahivka (20) and Bucha (14).

"This is due to the orientation of clients towards the optimal combination of price on the one hand, and risk assessment and residential complex services on the other. Probably, the trend in the next year and a half will be the search for optimal construction formats that combine speed, versatility of design solutions and relatively low cost. We expect that these will be comfort-class projects and social housing," the expert predicts.

Created in February 2020, the Ukrainian proptech company M4U specializes in the development and implementation of comprehensive intelligent solutions in the field of real estate development.