Ukraine RE Hurt by War – but Deals Still Close

From Feb. 24 to Dec. 12, Ukrainians sold 52,605 different properties – 4.6 times less than the same period in 2021 (242,893).

KYIV, Ukraine – Since the beginning of the great war, Ukrainian real estate market has undergone dramatic changes. During the period from February 24 to December 12, Ukrainians sold 52,605 different properties. This is 4.6 times less than in the same period in 2021 (242,893).

The lion’s share of sales is residential real estate. From February 24 to December 12, buyers have purchased 47,023 apartments and residential buildings. This is 4.6 times less than in the same period in 2021 (216,994).

Also, sales of industrial real estate and garages have fallen significantly: 4.3 times to 4,622 objects, commercial real estate 5.2 times to 502 objects and administrative real estate 7.9 times up to 458 objects.

Where does the State Property Fund get the indicators of the real estate market? The Fund is a regulator of the valuation market in Ukraine, which is inextricably linked with the real estate market. The SPFU maintains a Unified Database of Valuation Reports, on the basis of which real estate sellers subsequently pay taxes.

“We are reviewing these reports to prevent understatement of the value of assets and, as a result, tax cuts. In 2022, thanks to such monitoring, the State Property Fund managed to prevent a reduction in budget revenues by about UAH 1.5 billion,” Yuliya Byelova, deputy chairman of the State Property Fund, said.

Only individual sales are included in the calculations.

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