Real estate stable but still very weak: the strange case of Ukraine
In Ukraine, housing prices seem to have finally stabilized. The economy is showing signs of recovery and, in general, the market is definitely more prosperous than usual. But in spite of everything, there remains a very important issue: that of a market that is still very weak compared to the European average.
Apartment prices have fallen by 4% compared to the last quarter of last year. In fact, about 1,131 dollars per square meter is required to purchase a property. Even the prices of newly built apartments have registered a real collapse, precisely in 61% compared to the peak that had been identified and touched back in 2008, where the threshold was that of $ 2,640 per square meter.
This devaluation was caused by the previous years that saw Ukraine as the protagonist of various rather difficult situations, linked above all to a phase of administrative and governmental instability.
However, this has not discouraged investors, who appear to be decidedly optimistic, although economic contractions of up to 10 percentage points have been reported.
Since 2017, the properties with dimensions greater than 60 square meters for apartments and 120 square meters. for the houses they have been subjected to a real tax rate of the same properties up to 1.5% on the minimum monthly salary for each exceeding square meters. However down from the previous maximum rate of 3%. The reduction is due to the strong impact triggered by the increase in minimum wages from UAH 1,378 to UAH 3,200 at the beginning of 2019.
Therefore, for a further 1 sq.m., the owner of the property will be obliged to pay a maximum annual tax of about UAH 48, compared to that expected in 2016 of 41.34 UAH.
Regarding the approach of foreigners in the Ukrainian real estate market, there are no particular restrictions with regard to buying and selling transactions.
Most of them are in US dollars, while major sales are quoted in hryvnia, the Ukrainian national currency.
A reassuring element is given by the high yield of the buildings, especially in the capital. There is talk of a range of values ranging from 7.50% to 10%. The average price per meter is 2,930 euros per square meter.
And the law on rent? It is definitely in favor of the owners! Let's find out why!
an owner has the option to withdraw from a rental contract without prior notice and without presenting an appeal to the court, if the tenant has not paid the rent for three consecutive months. Furthermore, rent increases can be negotiated freely. The parties can enter into a contract underlining the procedures for periodic rent increases that will then be implemented (for example based on inflation).
What to say, despite the situation is really varied, it seems that in Ukraine convenience is not lacking, both on the demand side, but also on the supply side. Certainly we hope for better times, to allow this land to rise to the top without fearing any competitors!
Apartment prices have fallen by 4% compared to the last quarter of last year. In fact, about 1,131 dollars per square meter is required to purchase a property. Even the prices of newly built apartments have registered a real collapse, precisely in 61% compared to the peak that had been identified and touched back in 2008, where the threshold was that of $ 2,640 per square meter.
This devaluation was caused by the previous years that saw Ukraine as the protagonist of various rather difficult situations, linked above all to a phase of administrative and governmental instability.
However, this has not discouraged investors, who appear to be decidedly optimistic, although economic contractions of up to 10 percentage points have been reported.
Since 2017, the properties with dimensions greater than 60 square meters for apartments and 120 square meters. for the houses they have been subjected to a real tax rate of the same properties up to 1.5% on the minimum monthly salary for each exceeding square meters. However down from the previous maximum rate of 3%. The reduction is due to the strong impact triggered by the increase in minimum wages from UAH 1,378 to UAH 3,200 at the beginning of 2019.
Therefore, for a further 1 sq.m., the owner of the property will be obliged to pay a maximum annual tax of about UAH 48, compared to that expected in 2016 of 41.34 UAH.
Regarding the approach of foreigners in the Ukrainian real estate market, there are no particular restrictions with regard to buying and selling transactions.
Most of them are in US dollars, while major sales are quoted in hryvnia, the Ukrainian national currency.
A reassuring element is given by the high yield of the buildings, especially in the capital. There is talk of a range of values ranging from 7.50% to 10%. The average price per meter is 2,930 euros per square meter.
And the law on rent? It is definitely in favor of the owners! Let's find out why!
an owner has the option to withdraw from a rental contract without prior notice and without presenting an appeal to the court, if the tenant has not paid the rent for three consecutive months. Furthermore, rent increases can be negotiated freely. The parties can enter into a contract underlining the procedures for periodic rent increases that will then be implemented (for example based on inflation).
What to say, despite the situation is really varied, it seems that in Ukraine convenience is not lacking, both on the demand side, but also on the supply side. Certainly we hope for better times, to allow this land to rise to the top without fearing any competitors!
