How have prices in the residential real estate market changed during the year of pandemic restrictions? It must be recalled that at the beginning of the quarantine, prices dropped significantly.
If we talk about the secondary market, then yes: as the restrictions were launched, prices decreased by about 20%. But now, there is a tendency to increase prices, especially for small one- and two-bedroom apartments – here prices have returned to the pre-quarantine levels.
Now, one-bedroom apartments on the secondary market, depending on the type, condition of the house, and area, might cost from 28 to 60 thousand USD.
As for large apartments, they fell in price and remained at that level. These are apartments mainly with central heating located in the sleeping areas.
And what about the prices for apartments in the newly constructed buildings?
They did not fall in price, neither during quarantine nor now. Construction agencies just did some discounts. On the contrary, annual prices increased for the houses which were already completed and handed over.
Prices in new buildings can not fall, as the cost of building materials is only rising. Initially, their sales merely decreased. But now, as far as I can see, the sales are going well. A square meter of housing in new buildings, depending on the area and class (econom, elite, or business), in the zero cycle without decoration costs from 580 to 1500 USD.
Going back to the secondary market, what is the demand for small apartments?
People just sell big apartments and move to smaller ones. In addition, apartments on the secondary market are always cheaper than in new buildings.
Initially, demand fell because people did not know what would happen after the first quarantine, hence they did not invest in the real estate market. When they saw that such «swings» would be for a long time, they began to invest in real estate again, because it is more stable than banks during the pandemic. Apartments can always be sold, and there is no guarantee with the bank that it will not go bankrupt in the current conditions.
Principally, people have enough money to pay 100% of the apartment cost or most of this sum. In addition, the loans for the purchase of real estate are well issued now, especially in the secondary market. That is, banks are more willing to give you a loan for an apartment either in a new building, or on the secondary market; however, taking a loan for an apartment in a newly built house – this is a difficult task.
And what is the current situation with the commercial space in new residential buildings?
Prices remained at the same level, but quarantine strongly affected sales. Now, many commercial premises are frozen – for sale as well as for rent. Such areas are sold poorly, even in the center. Previously, this was nonsense for Lviv, because it was impossible to find a good commercial space before the first quarantine – the rent was very expensive, and the purchase had lots of difficulties. Mostly, people bought and remodeled apartments. Although it was a long process, it was easier than buying a good commercial space.
How has the rental market changed this year?
Quarantine has made a very strong impact on the rental market. It fell. For a long time, there was no normally repaired apartment with furniture equal to 5,000 hryvnias. Now, there is a big number of such apartments on the market, and they can be rented for quite a long time. The demand is low. Expensive apartments have also fallen in price. If earlier, the two-room apartment with repair could cost 8,000 hryvnias, now, such one can be found for 6,5, or 7 thousand. Offer far exceeds demand.
And the so-called student apartments are empty for a long time. For example, there are many of them in Lychakiv district, where the educational institutions used to have numerous Ukrainian and foreign students.
As for the higher-end apartments, the offer exceeds demand as well, although they are rented out. The price has dropped by approximately $100. If the price was not reduced, the apartments would be empty. For example, this is the case in the Pasichny district, where one-room apartments with good repairs were previously rented for 8-9,000 hryvnias. It is impossible to rent these apartments for the old price, because now, you can also find good housing closer to the center for this money.
Moreover, the summer is approaching, and people who have rented more expensive apartments are looking for houses to rent outside the city.
What is happening now in the market of country houses?
Country houses have always been rented, but the demand was not high, because people prefered living in the city, especially if they had children. However, since last summer, this market has revived in the sale of various cottages with small houses, as well as for rent. Even today, it is difficult to find a house for rent somewhere near the city, especially if it has a yard. And the closer to the heat, the greater the excitement. In the event of a lockdown, it is important for people to have a yard where no one restricts them. We had a case when three IT-specialists cooperated between themselves and rented a house outside the city together.
Which areas do people prefer?
There is a demand for everything close to Lviv: Lapaivka, Zymna Voda, Sokilnyky, Solonka. Everything around Okruzhna near the city. With what is further, it is more difficult, because people want to be able to reach the center if necessary, and choose settlements in locations with at least some infrastructure.
What are the prices for renting country houses near Lviv?
House prices start from 8,000 hryvnia – it depends on the area, number of rooms and general condition. For example, a house with 2-3 rooms with a small yard and after a cosmetic repair can be found at this price. Another house may cost 1,500 dollars.
And what about the sale of country houses?
Prices have not risen here, but demand – yes. Previously, country houses were poorly sold, people were not interested in them, because there was no fashion in the country. And now small country plots with houses are selling well.
Interviewed by Olexandra Bodniak
Translated by Vitalii Holich
