The Ukrainian real estate market is booming: demand for land is growing, the “eHome” program supports the housing market. Where is it more profitable to invest in 2025?
In 2024, Ukrainians concluded more than 452 thousand contracts for the purchase and sale of real estate. More than 60% are transactions with the purchase and sale of land. The driver of the housing market was the state lending program “eHome”. What is behind these figures and what to expect next?
Land as a reliable asset
The land market in Ukraine shows record transaction volumes in 2024. In October, 11.3 thousand transactions were concluded for more than 25.2 thousand hectares of land, which was the highest figure since the beginning of Russia's full-scale invasion.
In total, 320.66 thousand hectares of land were sold during the year, and the average price was about 46,678 thousand UAH per hectare.
Land prices in Ukraine continue to rise during 2024-2025.
In 2024, the average price of agricultural land increased by 21%, reaching UAH 46,678 per hectare.
In January 2025, the price rose to UAH 48,622 per hectare. Prices are expected to continue to rise, especially in the central regions. The number of transactions is also increasing due to the participation of legal entities in the market.
The highest cost of land remains in the western regions, in particular in the Ivano-Frankivsk region (93,141 UAH/ha in January 2025), and the lowest prices are in the eastern and southern regions, especially in the regions affected by the fighting.
“The main advantage of land plots in times of crisis is that they do not collapse, unlike houses or apartments. In the event of shelling and destruction, money invested in land is preserved much more reliably,” says co-owner of the real estate agency Liana Trunova.
They bought and sold mainly “commercial” land and plots for private farming, a significant part of which was under a moratorium until July 2021.
“It is important to consider the distance from military action, because it affects liquidity in the future. In Poltava, land investments are now as safe as possible, but you need to evaluate the specific location and development prospects,” Trunova adds. “If the goal is quick income, residential real estate is more profitable, it can be immediately rented out. But if you look strategically, several years ahead, then land remains a good asset for long-term investment.”
“eHouse” as a driver of the housing market
The state program ” eHome ” has become a key factor in the revival of the housing market. Over the year, 8,500 loans were issued for a total of UAH 14.6 billion, which is 65% higher than the figures for 2021 and 2023. The main participants in the program were military personnel, who took advantage of preferential mortgages at 3% in 55% of cases. Teachers and doctors (8.3% each) and scientists (2%) were also active. Separately, loans at 7% were received by citizens without their own housing (22%), veterans (2%) and IDPs (2.3%).
The average loan amounted to UAH 1.6 million, and the average cost of real estate was UAH 2.2 million. The purchased apartments had an average area of 56.9 square meters. Under the program, Ukrainians purchased 900 thousand square meters of housing.
Construction industry: challenges and prospects
In 2024, there was a significant increase in demand for building materials compared to 2022-23. This is confirmed by both the increase in prices for all groups of materials and the increase in waiting times for them.
“If in 2022-2023 we, developers, determined the trends of the construction materials market, somewhere even formed the market policy, could afford dumping, choose from 10 offers, then in 2024 sometimes it was necessary to stand in line, for example, for apartment doors, window structures or electrical equipment,” notes a construction company from Irpen, Kyiv region.
The increase in demand is due to several factors:
- Increase in construction volumes, especially in the Kiev region.
- The shortage of labor due to mobilization, as reported by suppliers, has a significant impact.
There is no accumulated data yet regarding forecasts for 2025. However, based on the current situation, it can be assumed that demand growth is likely to continue, given the economic recovery and increased investment in housing construction.
The main challenges of the construction industry
The biggest problem facing the construction industry is the shortage of builders caused by mobilization. This trend is confirmed by both developers and their partners and contractors.
Logistics challenges also have a significant impact on the market. Over the past three years, a large number of production facilities have moved their capacities away from the fighting. There are still single suppliers in Kharkov, from where there are delays or cancellations of orders. The Krivoy Rog Metallurgical Plant remains virtually the only supplier of metal products for the entire country.
Builders adapt to these challenges, plan purchases in advance and diversify suppliers. For example, crushed stone is ordered from different quarries, concrete from several factories, gas blocks are purchased in different regions: Brovary, Kharkov, Zhitomir. This helps reduce the risk of failure to meet construction deadlines.
Real Estate Market Prospects
In 2025, legislative changes will be an important factor influencing the market, in particular new tax initiatives and changes in lending conditions.
Rising prices for building materials and a limited supply of quality housing in major cities could further boost real estate values, making them attractive for long-term investment.
In 2025, apartment prices in Ukraine continue to grow. In the primary market, prices are expected to increase by 15-20% depending on the project and region.
In Kyiv, the cost of a square meter is 53,500 hryvnia, exceeding only Lviv – 55,600 hryvnia.
On the secondary market, prices are expected to rise by 7-10%.
Compared to 2024, new home prices are rising significantly due to factors such as inflation, tax changes and rising building material costs.
Investment prospects largely depend on the strategic approach of developers offering promotional offers, flexible purchase terms and innovative solutions to increase the value of their properties.
Demand for autonomous homes with modern energy-saving technologies is also growing, as buyers prefer real estate that provides comfort and independence from external factors. The high liquidity of such properties, as well as the possibility of their value increasing in the future, make real estate one of the key drivers of the country's economic recovery.
Author: Daria Bukharina