Real estate boom takes hold in Kyiv as Ukrainians flee war-torn frontline cities
Many Ukrainians are looking to settle in Kyiv and western Ukraine, which are considered safer than the war-ravaged east and south of the country.
In the distance beyond this blown-up bridge, new apartment blocks (right) under construction are seen alongside tower cranes.
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KYIV: In the Kyiv suburb of Irpin, new apartment blocks rise among the remnants of war.
Two years ago, the city on Kyiv’s doorstep held out against the early days of Russia’s invasion as Moscow advanced towards the Ukrainian capital.
While Ukrainian troops managed to push Russian forces out, the city was devastated with about 70 per cent of its infrastructure damaged, according to its mayor.
Today, Irpin stands as a beacon of Ukrainian resistance.
There is still debris on the streets, and structures remain damaged from Russian shelling. But signs of a revival are in place. Workers are repairing roads, restoring infrastructure and building new houses.
NEW HOMES FOR FLEEING UKRAINIANS
Many of these new apartments have been purchased by the thousands of civilians who settled in Irpin after fleeing on foot from Russian forces in frontline cities.
Business consultant Denys Bazilevych is among those hoping to buy an apartment in the Kyiv suburb.
He moved his family from what used to be their home in the southern port city of Odesa, where Russian attacks have become too frequent.
“We have constant bomb shelling and Shahed (drones) all the time, so we decided to move to Kyiv because of safety. It’s also not too safe here but it’s much safer than Odesa,” he told CNA.
They have been living in rental homes since their arrival but recently started viewing apartments with the intent to purchase.
The Bazilevych family is part of a real estate boom that has taken hold in recent months, even though there is still no end in sight to the war.
They represent one of the main groups driving Ukraine’s housing market – those moving because their place of residence has become unsafe.
Many are looking to settle into neighbourhoods in Kyiv and in western Ukraine, which are considered safer than the war-ravaged east and south of the country.
JUMP IN PROPERTY TRANSACTIONS
According to Ukrainian analytics company Opendatabot, more than 400,000 homes, apartments, and land changed hands last year – a 70 per cent increase from the first year of war in 2022.
While the number is still lower than that of pre-war 2021, when the country saw a record of over 630,000 properties sold, observers said it is still a sign that Ukrainians are increasingly willing to invest.
As the war grinds on, however, the risks associated with home ownership remain high.
More than 250,000 homes and apartments have been damaged by Russian attacks as of January this year, according to the Kyiv School of Economics.
Despite the risks, Ukrainian law firm Prikhodko and Partners said that 90 per cent of homeowners do not insure their properties. Natural disasters are uncommon in Ukraine, hence the culture of buying home insurance never took hold.
Ukrainians also say that compensation for damages caused by Moscow’s attacks should be borne by Russia.
A BRIGHTER TOMORROW?
The United States Congress last month approved a long delayed US$61 billion aid package for Ukraine that includes air defence, artillery rounds, armoured vehicles and anti-tank weapons.
Real estate agent Anna Volkoshovets said that with the promise of additional military aid from the US, the future is looking brighter for Ukraine’s property market.
“The real estate market is like a living organism. After the news that America will help us, the number of calls and activities increased significantly,” said Ms Volkoshovets, who handles property transactions in Irpin.
“People have felt a kind of hope, potentially this taste of victory, that everything would work out, that we would live under a peaceful sky.”
In Bucha, another suburb that saw some of the worst atrocities of the war when it fell under brief Russian occupation in March 2022, cranes and new residences now tower over the neighbourhood.
Developer Yuriy Rybalchenko was the among first in the city to begin rebuilding after Russian forces retreated.
He said the number of construction projects has now reached as much as 50 per cent of pre-war figures.
“We adapted our projects, even those that were already under construction, to match new building regulations which require the installation of bomb shelters,” he added.
He plans to make the shelters as comfortable as possible, featuring workspaces, access to the internet, and a children’s room.
For many Ukrainians, including the Bazilevychs, buying a home now is about how far they can get away from the frontlines and from airstrikes.
Mr Bazilevychs said having a bomb shelter in his building is a must. His family also prefers living in a unit closer to the ground so they are less exposed to air attacks.
“We’re just trying to find something low level – first or second floors. Third level is the maximum,” he said.
