Real Estate - Ukraine

Ukraine

The Real Estate market market in Ukraine is expected to reach a value of US$502.40bn by 2024.
The residential Real Estate market segment dominates the market, with a projected market volume of US$440.80bn in the same year.
This segment is anticipated to grow at an annual growth rate of 13.27% (CAGR 2024-2028), resulting in a market volume of US$827.00bn by 2028.
When compared globally, China is projected to generate the highest value in the Real Estate market market, reaching US$135.70tn in 2024.
The demand for luxury apartments in Ukraine has skyrocketed, driven by an increasing number of high-net-worth individuals investing in the country's real estate market.

Key regions: United States, China, Japan, Germany, United Kingdom

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Analyst Opinion

The Real Estate market in Ukraine has been experiencing significant growth and development in recent years. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors have all contributed to this positive trajectory. Customer preferences in the Ukrainian Real Estate market have shifted towards modern and energy-efficient properties. Buyers and renters are increasingly seeking properties that are equipped with the latest amenities and technologies, such as smart home systems and energy-saving appliances. Additionally, there is a growing demand for properties in urban areas that offer convenience and proximity to amenities such as shopping centers, schools, and public transportation. Trends in the Ukrainian Real Estate market reflect the changing preferences of customers. Developers and investors are focusing on the construction of modern residential and commercial properties that meet the demands of the market. This includes the development of mixed-use properties that combine residential, commercial, and recreational spaces in one location. Furthermore, there has been an increase in the construction of high-rise buildings in major cities, as developers seek to maximize land usage and cater to the growing urban population. Local special circumstances in Ukraine have also influenced the development of the Real Estate market. The ongoing urbanization process has led to increased demand for housing in cities, particularly in the capital city of Kyiv. This has resulted in a rise in property prices and an increase in construction activity. Additionally, the government has implemented various reforms to attract foreign investment in the Real Estate sector, including simplifying the process of purchasing property and improving the legal framework for property rights. Underlying macroeconomic factors have played a significant role in the growth of the Ukrainian Real Estate market. The country's stable economic growth, coupled with low interest rates, has made property ownership and investment more attractive. Furthermore, the government's efforts to improve infrastructure, such as the construction of new roads and public transportation systems, have enhanced accessibility and connectivity, further driving demand for Real Estate. In conclusion, the Real Estate market in Ukraine is experiencing growth and development due to changing customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. The focus on modern and energy-efficient properties, the construction of mixed-use developments, and the increasing urbanization process are all contributing to the positive trajectory of the market. With continued economic stability and government reforms, the Ukrainian Real Estate market is expected to continue its growth in the coming years.

Methodology

Data coverage:

Figures are based on value of residential and commercial real estate, average real estate value, residential estate transactions and leases.

Modeling approach / Market size:

Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data from international organizations and industry associations. Next we use relevant key market indicators and data from country-specific associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.