The Rental Market: How War Changes Demand and Prices

The housing rental market in Ukraine has undergone significant changes. In particular, tenants are increasingly less likely to choose old panel houses or "Khrushchevs", preferring modern apartments, in particular in new buildings up to 7 floors. This is due to both safety factors and problems caused by power outages. Communication strategist Victoria Bereshchak spoke about these changes and the current situation on the market.

She noted that currently most tenants prefer apartments in modern buildings or in brick structures from the 2000s, avoiding older buildings. Apartments from the 1st to the 7th floors have become especially popular, which is again related to security: on such floors, there is less chance of danger due to possible airstrikes or missile attacks.

The expert also emphasized the importance of seasonality. Although there was some seasonality in the rental market before the war, the market has changed since the COVID-19 pandemic, in particular due to the absence of students and the partial mobility of workers. However, already in 2023-2024, the market began to recover, and seasons of activity and recessions appeared again.

Victoria Bereshchak notes that a significant increase in demand and rental prices is observed in such hub cities as Dnipro, Poltava and Kropyvnytskyi. These cities have become the main centers for displaced persons coming to the larger regions, including internally displaced persons (IDPs). Instead, other cities are still waiting for the spring revival of the market.

In general, the demand for rental housing in Ukraine is actively changing, and the rental market is oriented towards new realities, in particular, safety and seasonality.

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