The war in Ukraine became a decisive factor in transforming many areas of life, particularly the real estate market. Massive population relocations, destruction of infrastructure, changes in regional attractiveness, and new security criteria have radically altered the structure of supply and demand for housing. In 2024–2025, the real estate market is undergoing a new wave of transformation. In this article, Baltimore Chronicle analyze key changes, new trends, problems, and opportunities that have emerged amid the protracted war.
Main Factors Influencing Changes in the Real Estate Market
The war in Ukraine caused a number of structural changes that directly affected the housing market:
- Massive migration of the population from dangerous regions to relatively safer oblasts.
- Destruction of residential areas and the need for reconstruction.
- Shift in the geography of demand — the east is losing, the west and center are gaining.
- Reformatting of the rental market — short-term rentals are being replaced by long-term leases.
- Decline in investment activity and growth of social housing.
These factors set the direction of the industry’s development for at least the next several years.
How Housing Demand Changed in Different Regions
One of the most telling consequences of the war was regional migration. Hundreds of thousands of people were forced to leave eastern and southern Ukraine due to hostilities.
Western Ukraine — the New Center of Attractiveness
Cities like Lviv, Uzhhorod, Ivano-Frankivsk, and Ternopil experienced demographic growth. This caused:
- an increase in housing prices;
- activation of developers;
- rental housing shortage;
- transition of student apartments to long-term rentals for displaced persons.
Central Ukraine — Strengthening Positions
Cities such as Kyiv, Vinnytsia, Cherkasy, and Poltava proved affordable by price and logistics. Some migrants return to the capital, which stimulates:
- revival of new construction market;
- increased demand for secondary housing in suburbs;
- development of low-rise housing.
East and South — Decreased Activity
Kharkiv, Dnipro, Zaporizhzhia, Mykolaiv, and Kherson faced population outflow. In these regions, there is:
- a collapse in real estate prices;
- decline in construction activity;
- increased share of destroyed housing stock.
Price Dynamics in the Real Estate Market in 2024–2025
The pricing situation turned out to be uneven, as regional factors dominate over nationwide trends.
| Region | Average Price per m² (2024) | Average Price per m² (2025) | Change |
|---|---|---|---|
| Lviv | $1500 | $1700 | +13% |
| Kyiv | $1200 | $1350 | +12.5% |
| Kharkiv | $800 | $600 | -25% |
| Dnipro | $950 | $850 | -10.5% |
| Uzhhorod | $1100 | $1300 | +18% |
Prices in western regions grow faster due to more stable demand, while in frontline zones they rapidly fall due to risks and destruction.
Changes in the Rental Market: New Rules of the Game
The rental market experienced significant changes:
- short-term rentals decreased in favor of long-term leases;
- average prices increased in cities hosting displaced persons;
- demand returns slowly in Kyiv;
- popularity of furnished apartments and turnkey solutions grew.
Trends of 2024–2025
- In Lviv and Ivano-Frankivsk, rental housing is booked months in advance.
- New players entered the market: hotels repurposed as apartments.
- The role of safe housing with shelters has increased.
Reconstruction of Destroyed Infrastructure and the Role of the Government
The government and donors launched large-scale projects to restore the housing stock. Main initiatives:
- Programs for internally displaced persons (IDPs) — social rental housing.
- “eRecovery” — a digital tool for compensation.
- International partners’ participation in financing construction.
Key Challenges:
- shortage of construction materials;
- delays in permitting documentation;
- instability in energy supply.
New Construction Trends in 2024–2025
Modern construction takes war realities into account:
- mandatory planning of shelters in new buildings;
- increased interest in cottage towns and private housing;
- energy efficiency and autonomy are top priorities.
Relevant Types of Housing:
- Townhouses and duplexes;
- Low-rise buildings up to 4 floors;
- Houses with generators and autonomous heating.
Investments in Real Estate: Risks and Opportunities
Investing in housing remains attractive but with shifted focus:
- Kyiv, Lviv, and western regions are the most promising;
- Rental income has increased due to housing shortage;
- Demand for commercial real estate declined except in the IT sector.
Main Advice for Investors:
- Avoid frontline regions;
- Focus on cities with high IDP demand;
- Invest in apartments with autonomous systems.
What the Real Estate Market Will Be Like Next
The Ukrainian real estate market in wartime has proven its ability to adapt. It changes alongside the country, responding to new challenges, societal demands, and security realities. Population movement, shifts in priorities, and new housing formats form the housing map of Ukraine for 2024–2025. The future of real estate is safe, energy-efficient, and affordable housing that meets new social standards.
Earlier we wrote about what is more profitable: renting or buying housing in Ukraine.