Ukraine » Market Report

As one of the oldest cities in Europe, Kiev possesses beautiful historical districts with architecture and monuments dating back to the eleventh century. The origins of Eastern Slavs are rooted in Kiev, which was founded as the capital of Kiev-Russia during the tenth century. An Old Russian proverb says if Moscow is the heart of Russia and St. Petersburg is its head, then Kiev is its mother. Even during the Russian-dominated Soviet Union, the Ukrainian capital was considered the third great city of the empire (after Moscow and Leningrad). For a millennium, Kiev has acted as the as Europe’s a gate way to the Middle East and Asia.

The city is large enough to be cosmopolitan, but still retains a friendly sense of the countryside with many parks and forests. Over the last five years, Kiev has shown signs of market reform and has experienced an economic upswing, which in turn has caused a building boom along with a mass privatization of apartments, stores, and cafes. Ukraine is ranked 70th in the 2004 Human Development Report, with an HDI value of 0.777 out of 177 countries.

Renting a Kiev apartment instead of staying in a Kiev hotel is becoming increasingly popular. Kiev apartments provide visitors to Kiev much more flexibility, privacy, space and amenities than it could be found in Kiev hotels.

Most Kiev apartment rental companies provide safe and reasonably priced Kiev apartments in the very centre of Kiev. The apartments are typically renovated up to European standard, fully furnished and equipped to ensure proper comfort during a stay in Kiev. Foreign citizens have the legal right to own property in Ukraine. Prices for apartments in Kiev range of 1 bedroom apartment can cost between £44,500 and £50,000 2 bedroom apartments can range between £58,000 and £116,600 and 3 bedroom apartments can cost between £83,000 and £195,000 depending on the exact location of the apartment, quality of the building where it is located, space, renovation, amenities, etc.

Many newly well-to-do Ukrainians (so-called New Ukrainians) buy apartments and buildings in the historical districts and restore them, without first consulting an architect. As a result, buildings throughout the city have collapsed or cracked while attempting to transform them into “elite” residential estates. New Ukrainians have a set mind of grandeur.

Ipbre forecasts Ukraine’s residential property market as hot because of the prices that are continuing to rise. The future of property market looks bright both in terms of capital growth as well as rental yields. Everything seems to be working for Ukraine’s property market, it has a stable democracy, economic success, growing tourism industry. World Bank forecast 5.5% GDP) growth for 2008. Ukraine seems most promising property market as after the 'velvet revolution’ some property values have increased by 600% in 3 years. With Euro 2012 coming up and possible EU membership things are going to be better for sure.