New monthly market snapshot shows price decline in Kyiv
In September the average cost per square metre in new-builds in Kyiv fell by 4,5 per cent. Alongside Kyiv, notable month-on-month declines were also recorded in Kirovohrad and Odesa oblasts, at 4,9 and 1,7 per cent respectively.
The analysis is based on a new report from the verified property marketplace Dim.ria, which presents detailed monthly and annual dynamics of prices and demand across regions.
Reasons for the price changes
There are several factors that may have influenced the overall picture of the new-build market. Firstly, sellers remain active in most projects, which forms the supply base — it stands at 85 per cent of sales offices of new developments across Ukraine.
Secondly, in September three new residential buildings were commissioned — one each in Kyiv, Kyiv oblast and Khmelnytskyi oblast — which locally increases market supply and may moderately hold back prices.
Why prices in Kyiv have fallen now
The drop in the capital may have occurred because of the simultaneous presence of active supply and fluctuations in demand across different districts of the city. There is no single trend in Kyiv: some districts are becoming more expensive while others are getting cheaper, which leads to an overall average decline.
Moreover, demand across regions is changing unevenly — this is visible in data on the stock of enquiries versus actual transactions — and this also affects the city’s average price per square metre.
Who will feel the changes and how
The fall in the average price in Kyiv will primarily affect buyers who have been looking at offers in districts where prices were adjusted. Those planning to buy in the Pecherskyi district should understand that it remains the most expensive segment among Kyiv new-builds: the average cost is 2 887 dollars per square metre.
By contrast, in the Desnianskyi district the average price is much lower — it stands at 883 dollars per square metre — making this district more accessible for buyers on tighter budgets. The fall in the average may encourage some buyers to create additional demand in more affordable districts.
Regional differences in demand and price
The largest month-on-month increases in new-build prices in September were shown by Chernihiv, Zhytomyr and Zaporizhzhia oblasts — this was, respectively, plus 12, plus 5,2 and plus 3 per cent. Over the year the biggest increases were recorded in Chernihiv, Chernivtsi, Ternopil and Khmelnytskyi oblasts — plus 22,5, plus 20,3, plus 18,1 and plus 18,1 per cent respectively.
Demand in September also shows sharp regional divergence. The steepest falls in demand were seen in Volyn, Zhytomyr, Khmelnytskyi, Odesa and Mykolaiv oblasts — this was minus 27, minus 21, minus 18, minus 18 and minus 16 per cent. At the same time demand rose in Zakarpattia, Kyiv and Chernihiv oblasts — plus 10, plus 5 and plus 4 per cent.
Context of international changes
The report also reminds that dynamics of housing prices globally are heterogeneous. Finance.ua previously wrote that in some European countries housing prices rose by more than 15 per cent, while Finland, Luxembourg and France recorded year-on-year declines in housing prices.
This is not a direct argument for the Ukrainian new-build market but it provides broader context and helps show that local market conditions can differ from international trends.
