Kyiv Real Estate – January 2020

It was another month of gains for January 2020 in the Kyiv real estate market, marking the 21st consecutive increase since the bottom in June 2018. The year over year (January 2019-January 2020) gain stands at a healthy +15.7%.

Looking ot across Europe, only Prague and Bratislava are seeing numbers comparable to Kyiv. But with annual rental yields in Kyiv ranging from 9%-18%, Kyiv’s European counterparts really can’t compare when bringing in their average of 3%-4% per annum. Ridiculously cheap and available credit is such that every uber driver in Prague will now gladly boast of his/her vast real estate holdings (leveraged to the moon with several adjustable rate mortgages). This is the opposite situation we have here in Kyiv where only 5% of purchases last year were made utilizing a mortgage. Kyiv is still, largely a cash market.

Pricing

January price came in at $1443/m2 and up +1% from the previous month. City center continued to be the best performer for foreigners and expats as many units are being purchased for subsequent remodel and daily rental. This daily rent market has seen a price increase of +13%/year, every year since 2015 and if other European cities are any guide, this trend should continue for a number of years to come. Underlying purchase price should in turn continue responding with its own increase.

Kyiv real estate market, cost per meter

Inventory

Inventory finally caught a breather this month from it’s unrelenting evaporation. January was the first month in which Kyiv added units in two years. I wrote about this here last month.

Kyiv property inventory

Last month’s (December 2019) market update here