The Ukrainian real estate market is going through a difficult period. The situation has become much better compared to the beginning of the full-scale invasion, but still many people still have a question whether it is worthwhile to conduct real estate transactions now? Sellers doubt whether to sell apartments, buyers - whether to buy a home during the war. Let's consider whether you can sell real estate when martial law is imposed, what will happen to the market this year and how housing prices will change after the war.
Is it possible to sell real estate in wartime
According to the current legislation of Ukraine, the sale or purchase of apartments and other real estate during martial law is not prohibited. Citizens have the right to buy and sell housing during wartime in accordance with the established procedure, including by entering into a sale and purchase agreement, which is subject to mandatory notarization. The transfer of ownership from the seller to the buyer is registered in the State Register of Property Rights to Immovable Property.
During the first days of the full-scale invasion, the Ministry of Justice took appropriate measures to protect the rights of citizens, in particular, it temporarily stopped access to the State Register of Property Rights to Real Estate. Due to the lack of access to the register, it was temporarily impossible to conclude real estate sale and purchase agreements.
In May 2022, the State Register of Property Rights to Real Estate restored its work. This opened up the possibility of buying and selling real estate. But some changes have been adopted. At the moment, not all notaries have the right to certify real estate sale and purchase agreements. Only those notaries who are on the list approved by the Ministry of Justice of Ukraine are allowed to do so. The list can be viewed on the website of the Ministry of Justice.
What will happen to the real estate market in 2024
Ukraine's economy suffered significantly in 2022, but gradually experts began to see a recovery of pre-war performance in the real estate market. The recovery started in the other half of 2023 and is forecast to continue into 2024.
How the situation in the real estate market will develop this year depends largely on the news from the front and the overall economic situation in the country. The market is also significantly affected by the solvency of buyers and tenants, as the National Bank has released the exchange rate of foreign currencies, while the labor market is going through difficult times.
Another important factor is the supply market. Here there is a dependence on developers. It is still not clear whether developers are ready to launch new projects, whether there will be a deficit in the sales and rental market, and whether there will be enough offers on the primary and secondary housing market. At the moment the demand significantly exceeds the supply, which affects the formation of prices. Prices for rent and purchase of apartments in almost all cities, except for the frontline zone, are fixed at the highest level since the beginning of the full-scale invasion. So far, there are no factors indicating a decline in housing prices.
The real estate market is also influenced by the state. Since October 2023, the state mortgage єOsela and the program єVidnovlennya have started working. If these programs receive stable funding, it may revive the situation on the market.
What will happen to real estate prices after the war
According to experts, there are unlikely to be any radical changes in the post-war real estate market. Given that the market is already recovering, we should not expect significant growth or, on the contrary, a drop in demand. But what will really happen to the market will be influenced by many factors: the duration of hostilities, the state of Ukraine's economy, the amount of destruction, etc.
According to experts, after the war, the trend of rising apartment prices will continue. The cost of housing will be influenced by the pace of reconstruction of construction, the desires of customers, the rise in the price of construction materials and more. But in general, the calm situation will have a positive impact on demand, which in turn will respond to the growth of prices.
After the war, real estate prices will rise, but not throughout Ukraine. This is possible in those regions where there was a significant drop in the cost of housing after the start of the full-scale invasion. These are such cities as Dnipro, Mykolaiv, Kharkiv. But experts believe that prices will still be lower than the pre-war figures. Still, one should be prepared for the fact that after the end of the war, apartment prices will rise: somewhere more, somewhere less.
Recommendations of experts
Real estate experts recommend not to postpone the purchase of an apartment for later, if the buyer is in a relatively safe region. If now there is an opportunity to buy housing, it should be understood that after the end of the war to buy it for the same money will not be possible, as the growth of the cost per square meter is objective and it will definitely be.
Now the recovery of the real estate market is slow, so the rise in prices is not so noticeable. However, after the war, the demand for apartments is likely to increase, which will encourage sellers to raise prices.
If there is a real need for housing and there are certain financial possibilities to buy an apartment, it is best to look for a liquid object now and invest in it. In any case, the apartment can be sold later and earn money on the growth of the cost per square meter. The main thing is to choose the right object so that it is investment-attractive. In addition, it is important to realize that we are talking about relatively safe cities, not a frontline area.
Specialists of the real estate agency "Mayak" will help you find a favorably priced and liquid apartment. Realtors know which apartments and other types of housing in Kyiv and Kyiv region are worth buying now to be on the plus side when real estate prices start to rise after the war.
- 578 views