The residential housing market in Kyiv has more or less followed market trends in terms of the general financial prosperity of the city be them up or down.
However, now this market is distinctly split in 2 halves; the affluent which is more focused around the city centre but also includes prestigious suburban housing estates around Kyiv and the lower priced suburban areas which generally includes smaller apartments and houses. And this split applies to both rental and purchase prices.
City centre property prices are now down by more than 50% compared to the highs achieved during 2008. For example a retail premise in the city centre back in 2008 could be sold for up to $7000 per square meter and achieve a rental income of more than $60 per square meter per month. Now: you'd be lucky to achieve $2000 per square meter and a rent of uah 480 per square meter. Although these quoted numbers reflect city centre retail premises the percentage figures for residential premises are very similar.
The reason the same as always, demand.
With less and less expatriates and diplomats working in Kyiv (down by an estimated 50% in the past 6 or 7 years) the demand for top notch residential accommodation in the city centre or near centre has declined by a similar amount and with supply largely unchanged rental prices have dropped by a similar percentage. The same applies to properties in the exclusive price range of over $500,000. One of our clients has a magnificent house that severn years ago was valued at $1.25m but now attracts offers of only less than $600,000.
However, at the other end of the residential market demand and therefore prices for buying or renting are on the rise. This especially applies for apartments selling for less than $100,000 or rentals at less than uah 10,000 per month. The principal cause of this demand is apparently due to the influx of migrants from the troubled east and even Crimea.
So Kyiv is now a city of two halves. How long will this scenario last? I gave up forecasting about Ukraine years ago so we will just have to wait and see.