The Ukrainian rental market will remain active in 2025, driven by a number of factors. Demand for housing remains low, and rental prices have already increased by 20-37% over the past year. In large cities such as Kyiv, Lviv, and Uzhhorod, rental prices have even exceeded metropolitan levels.
Why are rental prices rising?
- War and Internal Migration
The third year of the war has forced many Ukrainians to leave frontline areas and move to safer cities. This has contributed to an increase in demand for rental housing in cities such as Kyiv, Lviv, Odessa and Dnipro. In addition, the rental market is actively growing in regions where enterprises working for the needs of the defense complex are being restored, creating new jobs. - Declining demand for housing
War, economic instability, and low purchasing power are forcing Ukrainians to refrain from buying housing. In particular, many of those who planned to buy an apartment were forced to rent, which automatically increases prices. - Dependence on the labor market
Demand for rental housing has grown in cities with stable jobs. Kyiv, Lviv, Odessa, and Dnipro remain the main centers of economic activity, while in Kharkiv, due to the lack of buying and selling, the rental market is the only vibrant part of the real estate market. - Rising utility costs
The cost of utilities, including heating, gas, and electricity, is also affecting the rental market. Homeowners are forced to raise rents to compensate for rising utility costs. - Popularity of short-term contracts
Due to the unpredictability of the situation, many tenants choose short-term contracts (for 6 months), which allows owners to review prices and increase them after the lease term expires.
Where is rent the most expensive?
In 2024, rental prices increased the most in Kyiv, Uzhhorod, Lviv and other cities in western Ukraine, where demand significantly exceeds supply. The average rental prices are as follows:
- Kyiv: 1-room apartment – 16,500 UAH, 2-room apartment – 22,900 UAH, 3-room apartment – 37,500 UAH.
- Uzhhorod, Lviv: Rent for 1-room apartments even exceeded the capital's level.
- Ivano-Frankivsk, Chernivtsi, Lutsk: Rental rates increase by 20-37% per year.
The cheapest remain Kharkiv and Sumy , where renting a 1-room apartment can cost UAH 4,000. The cost of rent in Zaporizhia and Mykolaiv is UAH 5,000, and in Chernihiv - UAH 7,000.
Prospects for 2025
Given the current situation in Ukraine, experts do not expect a significant revival of the housing market in 2025. Therefore, the rental market is likely to remain active, and rental prices will continue to grow, particularly in cities with high demand for housing.
