Destroyed cities and villages, damaged residential and non-residential buildings, continued construction of new buildings and the launch of new projects are the reality of the Ukrainian real estate sector. The LOOQME company together with PR-market and PRess Association UA held a press lunch with representatives of construction companies, construction business owners and the media to find out the state of the Ukrainian real estate market and its prospects.
The meeting began with the speech of the first secretary of the National Union of Journalists, Lina Kush. She once again reminded about the conditions under which media representatives have to work in order to convey information about the war in Ukraine.
We have collected abstracts of speeches about the real estate market for you. The full video of the press lunch is available at the link.
Denys Sudilkovskyi, marketing director of LUN
Topic: What will save the real estate market (and should it be saved)?
Two dominant opinions about the real estate market:
the market has stopped;
a huge boom is expected in the real estate market.
Study of the psycho-emotional state of Ukrainians in 2022 (data from Gradus, Moving Forward Together, Center for Economic Recovery, Advanter):
67% feel danger
58% believe that Ukraine will build a strong economy
55% believe that the state will rebuild everything and compensate
77% receive a salary
49% are unsure about their financial future
44% believe in the President
62% believe in the Armed Forces
49% main emotion: tiredness
“We are tired and do not believe that anything will be stable in the near future. We worry a lot about money. Nevertheless, we have great faith in the President and even more in the Armed Forces of Ukraine. We already have money problems, we’re seeing food prices rise, we’re uncertain about our future, and we can’t afford the luxury of long-term planning. And all this is projected onto the real estate market,” Denys Sudilkovskyi summarized.
Real estate prices continue to rise. The reason is not only the depreciation of the national currency, but also the destruction of the logistics system, internal agreements, problems with metal. Also, earlier Ukraine bought most of the glass from Russia and Belarus – now it has to be ordered from Europe. In a brief moment, housing becomes increasingly unaffordable, but a huge number of developers are back at work.
1160 housing complexes (66% of all housing complexes in Ukraine) resumed construction.
LUN monitors not only the construction of new facilities, but also monitors the fate of destroyed or damaged relatively new high-rise buildings (built since 2010). According to the monitoring results, 74% of new buildings in Buchi, Irpen and Gostomel were damaged to varying degrees.
LUN created the “War Houses” project, where it collects stories of people whose houses survived military aggression, and there is an opportunity to restore these houses. The information team helps people raise funds for reconstruction.
Stakeholders of the real estate market: people, developers, the state.
Current status of stakeholders:
People: do not have financial security.
Builders: have reduced sales and rising prices.
Government: reforms to ensure affordable mortgages, but the war continues and the country’s economy needs support.
A fourth stakeholder must be included: foreign partners.
Functions that stakeholders can perform:
People: create jobs (60% of GDP is the share of small and medium-sized businesses in developed European countries).
The state: to create conditions for the development of the economy.
Builders: build like strategists.
Foreign partners: provide resources, monitoring and control.
1 million families lost their homes: 131,000 houses destroyed (KSE data as of August 22, 2022). Unfortunately, this number is increasing every day. Pre-war volume of the real estate market: 3-4 billion dollars per year. Additional housing needs as a result of the war: about 50 billion dollars. With exclusively domestic capabilities, the reconstruction of the country will take decades.
During the reconstruction of the country, it is necessary to ask the question not of rebuilding the destroyed, but of building a new one, after analyzing our and the world’s mistakes of the past. We can build something new and it depends on us how high-quality, comfortable and safe it will be. We can build not according to the Soviet example, but create the cities of the future.
Serhiy Moldakhovsky, marketing director and board member of DOM.RIA and AUTO.RIA
Topic: Values of the DOM.RIA brand and analytics of how Ukrainians bought and rented housing
With the start of a full-scale invasion, realizing that people will need to move and immediately look for new homes, DOM.RIA implemented a new type of real estate inspection – by video call.
Since April, the housing rental market has started to recover. But he has changed: many people rent out their homes, who did not plan to do so. Although they need funds, renting is not a business for her. These owners are more loyal when it comes to price, but are picky when choosing new residents of their home. For them, the preservation of real estate and its care is basic.
Destroyed cities and villages, damaged residential and non-residential buildings, continued construction of new buildings and the launch of new projects are the reality of the Ukrainian real estate sector. The LOOQME company together with PR-market and PRess Association UA held a press lunch with representatives of construction companies, construction business owners and the media to find out the state of the Ukrainian real estate market and its prospects.
The meeting began with the speech of the first secretary of the National Union of Journalists, Lina Kush. She once again reminded about the conditions under which media representatives have to work in order to convey information about the war in Ukraine.
We have collected abstracts of speeches about the real estate market for you. The full video of the press lunch is available at the link.
Denys Sudilkovskyi, marketing director of LUN
Topic: What will save the real estate market (and should it be saved)?
Two dominant opinions about the real estate market:
the market has stopped;
a huge boom is expected in the real estate market.
Study of the psycho-emotional state of Ukrainians in 2022 (data from Gradus, Moving Forward Together, Center for Economic Recovery, Advanter):
67% feel danger
58% believe that Ukraine will build a strong economy
55% believe that the state will rebuild everything and compensate
77% receive a salary
49% are unsure about their financial future
44% believe in the President
62% believe in the Armed Forces
49% main emotion: tiredness
“We are tired and do not believe that anything will be stable in the near future. We worry a lot about money. Nevertheless, we have great faith in the President and even more in the Armed Forces of Ukraine. We already have money problems, we’re seeing food prices rise, we’re uncertain about our future, and we can’t afford the luxury of long-term planning. And all this is projected onto the real estate market,” Denys Sudilkovskyi summarized.
Real estate prices continue to rise. The reason is not only the depreciation of the national currency, but also the destruction of the logistics system, internal agreements, problems with metal. Also, earlier Ukraine bought most of the glass from Russia and Belarus – now it has to be ordered from Europe. In a brief moment, housing becomes increasingly unaffordable, but a huge number of developers are back at work.
1160 housing complexes (66% of all housing complexes in Ukraine) resumed construction.
LUN monitors not only the construction of new facilities, but also monitors the fate of destroyed or damaged relatively new high-rise buildings (built since 2010). According to the monitoring results, 74% of new buildings in Buchi, Irpen and Gostomel were damaged to varying degrees.
LUN created the “War Houses” project, where it collects stories of people whose houses survived military aggression, and there is an opportunity to restore these houses. The information team helps people raise funds for reconstruction.
Stakeholders of the real estate market: people, developers, the state.
Current status of stakeholders:
People: do not have financial security.
Builders: have reduced sales and rising prices.
Government: reforms to ensure affordable mortgages, but the war continues and the country’s economy needs support.
A fourth stakeholder must be included: foreign partners.
Functions that stakeholders can perform:
People: create jobs (60% of GDP is the share of small and medium-sized businesses in developed European countries).
The state: to create conditions for the development of the economy.
Builders: build like strategists.
Foreign partners: provide resources, monitoring and control.
1 million families lost their homes: 131,000 houses destroyed (KSE data as of August 22, 2022). Unfortunately, this number is increasing every day. Pre-war volume of the real estate market: 3-4 billion dollars per year. Additional housing needs as a result of the war: about 50 billion dollars. With exclusively domestic capabilities, the reconstruction of the country will take decades.
During the reconstruction of the country, it is necessary to ask the question not of rebuilding the destroyed, but of building a new one, after analyzing our and the world’s mistakes of the past. We can build something new and it depends on us how high-quality, comfortable and safe it will be. We can build not according to the Soviet example, but create the cities of the future.
Serhiy Moldakhovsky, marketing director and board member of DOM.RIA and AUTO.RIA
Topic: Values of the DOM.RIA brand and analytics of how Ukrainians bought and rented housing
With the start of a full-scale invasion, realizing that people will need to move and immediately look for new homes, DOM.RIA implemented a new type of real estate inspection – by video call.
Since April, the housing rental market has started to recover. But he has changed: many people rent out their homes, who did not plan to do so. Although they need funds, renting is not a business for her. These owners are more loyal when it comes to price, but are picky when choosing new residents of their home. For them, the preservation of real estate and its care is basic.