ЛУН Статистика

Real Estate Market Overview 2023 by LUN

Interest in buying apartments in Ukraine reaches 70-80% of pre-war levels, but some buyers are currently taking a pause and delaying their purchase decisions until the stabilization of the situation on the front.

The secondary market is showing price growth in areas far from the combat zone even in USD. According to LUN, the exception is the capital - since 2022, Kyiv has lost 3% in the value of one-bedroom apartments. Meanwhile, Lviv has grown by 12%, and one-bedroom apartments in Ivano-Frankivsk have even risen by 18% in USD.

On the primary market, developers are opening sales departments, but they are building significantly less actively compared to pre-war rates. In the first three quarters of 2023, 15% less housing was put into operation in the capital, 35% less in the Kyiv region, and 38% less in Lviv. This could lead to a shortage of new square meters, which is critical for those willing to take advantage of the preferential mortgage program "7% yeOselya," which requires the house to be no more than 3 years old.

Insights of the year

The general state of the market

With the end of the winter blackouts, the interest in purchasing apartments in 2023 remains stable, standing at 70-80% compared to pre-war levels. After a two-thirds drop at the beginning of the invasion, Ukrainians are returning to the idea of buying their own real estate.


Additionally, the market is being further fueled by the State Preferential Mortgage Program '7% yeOselya' (from 3% annual interest for up to 20 years). Despite the relatively small number of loans issued compared to the overall sales figures, the introduction of the program itself stabilizes sentiments in the market and encourages potential buyers to take more active actions.

The total losses of Ukraine from the military aggression have already exceeded 150 billion dollars, with more than a third of that being residential housing.

Specifically, this contributes to a wave of internally displaced  people. A similar situation was observed in 2014, and it led, among other things, to the development of the suburbs of Kyiv, where in recent years before the invasion, even more new apartments were put into operation than in the entire capital.

Secondary real estate market

The secondary real estate market in regions distant from the combat zone has seen an increase in prices. The exception to this trend is the capital, which has minimally reduced average prices since the end of the blackouts in the spring of 2023. This is likely related to migration processes, as Kyiv residents are postponing their decision to return home. This is particularly true for women with children. The decision to purchase new housing is being deferred until family reunification, even if there is currently the financial capacity to do so.

Among one-bedroom apartments, Kyiv has seen a 3% decrease, while Lviv increased by 12% during the same period. The leader in growth is Ivano-Frankivsk with an 18% increase in USD.

For two-bedroom apartments, Vinnytsia saw an 18% increase, Ivano-Frankivsk grew by 17%, Lviv showed a 9% increase, and Kyiv experienced a slight decrease of -1%.

Among three-bedroom apartments, Kyiv witnessed a significant 6% decrease, while Vinnytsia and Ivano-Frankivsk saw increases of 13% and 8% respectively in USD. Lviv showed a 9% increase in USD.

In absolute numbers, among the most popular option for Ukrainians — one-bedroom apartments — Kyiv recorded the most significant losses with an average decrease of $2,000, while Lviv gained the most with an increase of $6,400, followed by Ivano-Frankivsk with an increase of $4,700. Chernihiv saw an increase of $4,000, even surpassing Uzhhorod, which had an increase of $3,200.

Traditionally, Kyiv and Lviv have held their positions as the most expensive cities for buying housing. However, with the onset of full-scale war, Uzhhorod joined them, where it takes a little over 9 years of full average local salaries to afford to buy an apartment in the city. This is an illustrative calculation of the necessary number of annual salaries of programmers to purchase housing in their respective cities.

Primary real estate market

The number of residential complexes listed for sale on the primary market is directly related to the distance from the front lines. The safest western regions have 80-90% or more of their sales departments open relative to the pre-invasion level.

The pace of putting housing into operation is overall expectedly decreasing. While 2022 saw the completion of projects that had already been started earlier, 2023 is showing a more realistic state of affairs in various regions.


Темпи введення в експлуатацію загалом очікувано зменшуються. Якщо 2022 добудовували розпочате раніше, то 2023 вже демонструє більш реальний стан речей по областям.

Kyiv has experienced a 15% decrease in the volume of housing put into operation in the first three quarters of 2023 compared to the same period in 2022. Kyiv region suffered a significant 35% decrease. Lviv saw a 38% decrease, while Odessa delivered 6% more. Dnipro also showed growth in the statistics with a 4% increase.

This situation, coupled with the revival of demand, is likely to lead to a shortage of new square meters, especially for those interested in taking advantage of the preferential '7% yeOselya mortgage program under 7% annual interest from the government. The program's limitation for all population groups is the age of the house - not more than 3 years old, which, along with the reduction in construction since the beginning of the invasion, significantly reduces the number of available options.

Rental Market

The demand for rental properties continues to grow, highlighting the migration processes in Ukraine. August 2023 marked a record level of interest in renting apartments in the entire history of observations.


Kyiv ranks third in terms of the cost of living, with the price of a one-bedroom apartment at 13,000 UAH per month (Lviv - 16,000 UAH, Uzhhorod - 15,100 UAH). When it comes to the rental price of a two-bedroom apartment, the capital is now on par with the leader, Lviv, at 18,000 UAH. This is likely due to the smaller supply of small apartments in Lviv, which were in high demand even in 2022, leaving only more expensive options on the market.


For analyzing the economic feasibility of purchasing a home, the ratio of annual rent payment to the cost of the apartment is calculated. For example, without considering depreciation and ancillary costs, in Kyiv, the average cost of an apartment is equivalent to 15 years of rent. In Lviv, this ratio is 11 years, and in Odessa, it's 17 years. Kharkiv demonstrates an almost 20-year equivalent in rent, primarily due to falling prices for long-term rentals in the front-line region.

Summary and forecasts

In 2023, the real estate market demonstrates recovery in all segments. The highest demand for purchase is for ready or nearly ready housing with a delivery time of up to a year. Ukrainians consider investments in construction at early stages to be quite risky.

The reduction in the pace of new construction and the simultaneous formation of deferred demand from those who do not dare to spend their own funds until the situation on the front stabilizes could lead to a shortage of new square meters in the market. Therefore, in the absence of an escalation of military aggression, further market stabilization, and the conversion of deferred demand into new deals with subsequent price adjustments can be expected.

The LUN team thanks the Armed Forces of Ukraine for the opportunity to write this report and cautiously make optimistic forecasts for 2024.