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Purchasing a flat in Kiev and the hryvnia devaluation

Last year was one of the most difficult years the real estate market in Ukraine has seen for a long time. The devaluation of the hryvnia led to the lowest number of real estate transactions seen over the past 15 years. But certain experts says that currently real estate is at the bottom of the market and if people want to improve their living conditions they should not hesitate to buy now. Additionally, in dollar terms, the prices are now low and sellers quite accommodating. Realtors say that sellers needing to urgently sell real estate are ready to offer discounts of 3-5% of the advertised price.

Currently in Ukraine there are promising investments in land and real estate available. Prices are at the bottom of the market and unlikely to fall further. According to Andrew Novak, the value of investments in real estate will be several times higher in a few years. The war in eastern Ukraine and the economic crisis will sooner or later be over, and the prices of real estate will go up again. Currently, not every Ukrainian can afford to purchase real estate and consequently it is a good opportunity for foreign investors. The demand for real estate will depend on the political situation in Ukraine, the situation in eastern Ukraine, the performance of the hryvnia, and the rate of economic growth. Ukrainians are cautious about making big purchases and are currently waiting for better times to invest.

Nevertheless, if we see improving economic growth this year, it is likely that the real estate market will react and the number of transactions and prices will increase


- After the USSR collapse, the real estate market in Ukraine is one of the most active in the world. It had its peaks and falls, which are due to the global economy shakes or to the political situation in Ukraine.

- Real estate prices in Kiev and suburbs of Kiev after the crisis significantly decreased, showing records of cheapness in USD.

- Currently, prices fell slightly not only in dollars but UAH too. The sharp appreciation of the dollar from 8 to 25, significantly contributed to this. Therefore, on the one hand, the owners of real estate "premium" class have no hurry to sell their property on this bargain prices. On the contrary, if they have money, they are willing to buy such housing at a lower cost.

- Faced with the falling of demand, sellers of real estate prices declined the rigid peg to the dollar. Due to this, in dollar terms, the price of real estate in Kiev has decreased by about a third.

- A studio apartment can be even three times cheaper in comparison with other European capitals

Therefore the causes of low-cost housing in Kyiv and its suburbs are evident:

  • There are no affordable and no comfortable conditions for mortgage lending
  • As a consequence of the first point - there is a significant decrease of property purchase;
  • Middle class after the crisis and hryvnia devaluation have a limited level of economic opportunities


You purchase your property while the prices are very low and you postpone to sell it until better times, so you need to wait a few years until the economy stabilized and the situation in the country will become back to favorable.

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Houses price failing in Kazakhstan

The beginning of 2016 for the real estate market was quite impressive.  The changes in the foreign exchange reform, the transition of the prices into KZT currency, the tightening of the mortgage conditions and the changes in the world markets determined the state of the real estate market.  For many, financial market participants renewed rise in oil prices was the first signal for the purchase of real estate.

Kazakhstan had a sharp drop of tenge currency prior year, but the increase in the oil prices have a positive impact on the welfare of the country, the tenge exchange rate and the real estate market. For many, financial market participants renewed rise in oil prices was the first signal for the purchase of real estate. Perhaps the main event for the real estate market at the beginning of the year was the change in the dollar price tags to tenge. However compared to 2015 tenge, housing prices have increased by an average of 20%.Despite the fact that the wages of people fall, the demand increase on the property in the capital cities in all regions of Kazakhstan - Astana and Almaty - localities with the highest net income. A distinctive trend of recent weeks in Astana was a slowdown of prices decrease.

Fundamental factors in Kazakhstan is that housing prices is closely correlated with the global markets of raw materials. Therefore, rising of oil prices and the strengthening of the national currency - these are the signs of the positive changes in the real estate market. So due to the above factors, the prices of the economic class segment  have almost reached its bottom level (880USD/ m2), and further reduction is not expected. Now, from the point of view of investors, it is the best time to sell currency and acquire the real estate. This can be seen already by a record number of transactions in the market.

Somewhat different is the situation with the more expensive segments - business and elites. Since these segments of housing have a limited number of buyers and it does not react so quick to changes, the drop of the prices according to the analysts could be expected for another half a year. 

Overall the dynamics of the tenge prices shows that on the long term, housing prices are moving upward, and jumps (drops or increases), with the exception of price declines during the mortgage crisis of 2007-2008, are a reflection of changes in the dollar

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