The Residential Property Market of Ukraine

In the short term we believe the Kyiv market to be overpriced but many local real estate agents and property experts believe that prices are going to continue to rise with no indications currently suggesting a crash or even stagnation of prices in the near future. For this reason Kyiv could well be a good market to consider for investment to the residential Ukrainian property, especially for buying to let or buying off plan in the latest developments for resale upon completion to an awaiting market which favors brand new property stock. But it is really important for the investor to get a feel for the market on a month by month basis before making a move. In Kyiv there is currently a large demand and a shortage of supply of quality Ukrainian property stock and this has caused prices to rise dramatically and rental rates chargeable to go through the roof. Land sites prices have grown threefold in certain parts of the city in just 18 months and there are more skyscraper projects being considered now as a result. The latest to be pronounced is the Mirax Plaza, a 44 storied multi purpose development building consisting of 381 flats, a business centre, a recreation zone and restaurant.

A great alternative for residential Ukrainian real estate investment is Odesa - it is enjoying greatly developed infrastructure investment and foreign direct investment is inward flowing in many sectors. The city offers sea service to the likes of Istanbul and it is also becoming a favorite location for holiday makers searching for an accessible destination with massive charm. The local population is growing as the appeal of the city increases and job opportunities are created, and Odesa could be one of the markets for a slightly shorter term turnaround of an investor's commitment with short to medium term gains likely to be attractive.

The Commercial Property Market in Ukraine

Grade A office space in central Kyiv is in short supply - that is why developers are now rapidly searching for permission for the construction of alternative space just outside of the capital centre areas, while market demand is awaiting this supply to reach completion there's plenty of opportunity for huge investors to acquire lower grade space in need of investment and improvement or to purchase into existing stock or invest in forthcoming development projects. In general as the economic fortunes of Ukraine develop and the government continues its focus on attracting sustainable foreign direct investment into the business environment, so demand for quality office space particularly in Kiev will continue to surge.

The other commercial Ukrainian property field to look at is definitely retail - there is a serious undersupply per head of retail space when you compare the whole of the Ukraine to any European nation for example, and international retailers have realized this as have local developers and they are all now trying to cash in on the consistent double digit growth in retail spending that is being witnessed in the Ukraine annually. Three new mega-shopping centers are under construction with the majority of development focus centred on Kyiv, Odesa and Lviv giving the investor a tremendous range of opportunities to explore Ukraine.

Ukraine is going through a period of rapid development and expansion, its economic growth is flourishing and inward investment is strong…all features are for a continuing of the rise in fortunes of the nation and as a result it is highly likely that well considered and located real estate investments made today will reap an investor strong turn over the medium to long term.