This is a very bad investment. The businessman explained why it is not worth investing in real estate.
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International corporate finance consultant, lecturer at Edinburgh Business School Ivan Kompan states that investing in Ukrainian real estate is impractical and risky. He claims that this is a low-profit business with a volatile market. This was reported by the portal 'Gav.com'.
'I do not consider Ukrainian real estate an attractive investment object. It seems to me that this is a bad idea for investors. The profitability of the secondary real estate sales business after investing in construction is about 7-8% per year. In such a risky business, that profit is insignificant. Furthermore, the investor's funds are essentially frozen for two to three years while the house is being built. There is also the risk that construction will not be completed. And finally, residents of Donetsk and Luhansk invested in apartments but could not take them with them. This is complete inactivity,' Kompan emphasized.
Kompan asserts that all investments in Ukraine are very risky: 'We live in a country that is itself a major risk. Therefore, all securities issued in Ukraine, including government bonds, military bonds, corporate bonds, eurobonds, have significant risks'.
According to him, currently there are no financial assets in Ukraine worth investing in. In his opinion, there are no assets that can provide sufficient profitability to justify the existing risks. This applies to financial investments, the business school lecturer emphasized.
'Regarding investments in one's own business - there are more opportunities for earning, but this is not my competence. There are few businesses in Ukraine that, acting legally, can serve as suitable investments. Therefore, foreign companies in Ukraine are scarce. If they saw more opportunities for earning in Ukraine than risks, they would have invested their money here a long Time ago. Overall, the volume of foreign direct investment in Ukraine is ten times less than in Poland,' Kompan pointed out.
Earlier, 'Gav.com' asked the head of the Association of Real Estate Specialists (realtors) of Ukraine Olena Haidamaka about the state of the real estate market in the country and recommendations for investments, as well as whether there are prospects for Kyiv construction projects.
According to an OLX survey, in 2025 only 12% of citizens plan to purchase real estate. It is noted that the demand for real estate in January-October 2024 decreased by 3.1% compared to the same period in 2023.
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