Dynamics of prices on the secondary housing market of Kyiv

In June 2023, on the secondary market of Kyiv, the median price in dollar equivalent was 1,328 dollars. USA/sq.m. which is 1.2% higher than in May 2023. Compared to June 2022, the median offer price on the secondary market of Kyiv decreased by 11.6% in dollar equivalent, and increased by 10.4% in national currency. These are the results of the study of the Kyiv secondary real estate market for June 2023, conducted by analysts of the real estate search portal. The experts were based on the analysis of ads posted on the portal, as well as user activity.

General situation on the real estate market

"Purchasing activity in the housing market remains very low, signs of recovery are weak. Demand will remain depressed for a long time due to security risks, falling incomes and significant emigration. The housing stock is shrinking due to destruction, and the pace of new housing creation is at risk given the uncertainty and deteriorating financial condition of developers. The prices stated in the ads are inflated and do not correspond to the prices of real deals. The actual deals are at significant discounts.
There is almost no market mortgage, and the work of state support programs is currently unstable," the National Bank notes in the report on financial stability.
It is the secondary market that better reflects the balance of market forces, because most transactions take place in this segment of the market. Housing is mostly sold with discounts: sellers make concessions.
The average prices in the ads for all objects are significantly higher than in those ads for which the apartments were sold. This difference was greatest in the first months of the full-scale war and during active shelling of infrastructure in late 2022. During the year, declared housing prices in dollar equivalent on the secondary market decreased by 11.6%.
As of May 2023, housing prices in the ads for which apartments were sold were a quarter lower than the average for all ads, the National Bank reports.

Prices on the secondary real estate market

Currently, the market is gradually undergoing a stage of price adjustment. Since the beginning of 2023, there has been a gradual increase in the declared value. Thus, since January 2023, the median offer price on the secondary market of Kyiv has already increased by almost 5% in dollar terms.
But the stated prices are not supported by market factors. Given the very weak demand, the prices stated in the ads primarily reflect the seller's expectations.
Due to the slow recovery of the economy and incomes, emigration and general uncertainty, demand will remain low for a long time. The purchase of housing is mainly carried out at the expense of savings. Mortgages, as before the start of the full-scale invasion, form a very small share of sales. Less than 2% of transactions last year were financed with the involvement of bank lending, but half of solvent potential buyers postpone the purchase of housing until the end of martial law.
In June 2023, the median offer price (in dollar terms) on the capital's real estate market increased by 1.2%, compared to May of the current year, to $1,328. USA/sq.m. This indicator in the category of one-room apartments increased by 5.6% to $1,386. USA/sq.m. Two-room apartments decreased in price by 1.9% (USD 1,314/sq.m.). The median price of 3-room apartments increased by 2.3% and amounted to $1,165. USA/sq.m.