Summer shelling of Ukraine halved demand for newly built housing

In August, the demand for apartments in new buildings fell by an average of 40-50% compared to July, experts in many construction companies said.

However, after the resumption of uninterrupted power supply, interest in new buildings began to revive.

In mid-September, demand rebounded significantly and is already up to 80-85% of the first two summer months. However, a significant increase in demand is not expected in the fall due to the tense economic situation in the country. Most buyers will focus on high-quality residential complexes with a high degree of completion. These are primarily properties built in the “safe” western regions of the country, as well as in Kyiv and the region.

Overall, the drop in demand will result in the primary market experiencing the lowest price growth in the industry. In the fall, prices per square meter are expected to increase by 3-5% and only for properties with a 60% completion rate in safe regions.

Experts also predict active involvement of leading developers in the state mortgage program “eOselya”: more than 80 companies are currently accredited, and in September-October the number may reach 100.

Housing values have also changed. Luxury housing near lakes, reservoirs, or the Black Sea coast has lost interest and value due to the openness of the area and the danger of air attacks. In general, the housing market has shifted to safe regions such as Lviv, Ivano-Frankivsk, and Ternopil.