Changes in the Real Estate Market: What Will Happen to Prices for New Apartments.

Expected Increase in Real Estate Prices in Ukraine

According to forecasts, prices for new real estate in the primary market will rise by 20-25% in hryvnia. Part of this increase will be related to the rising costs of materials and labor.

Market participants cite several reasons for this increase. The first reason is the expected inflation rate in 2025 at 10%. The second reason is the exchange rate of the dollar set in the state budget project at 45 hryvnias.

We can say that for objective reasons, the cost of new buildings next year may increase by at least 10-15% in hryvnia. However, these figures do not take into account the increase in prices for building materials and construction and installation works. Therefore, it is quite possible that in 2025 the real cost per square meter, compared to 2024, may increase on average by 20-25%

During construction, developers revise the cost of square meters up to 10-12 times. This is called "planned" price increases and is associated with several factors, such as reducing risks for buyers and the natural increase in demand for actively constructed objects.

The final cost of the object is influenced by inflation, the exchange rate, and the cost of construction. If macroeconomic forecasts for 2025 materialize, the cost of real estate purchased in 2021 may increase by at least 20-25% by 2025, and by the end of 2026, the properties will be 50-60% more expensive than the initial prices.