The rental market: how war changes demand and prices

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

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

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

Viktoriya Bereshchak notes that a significant increase in demand and prices for rental housing is observed in such hub cities as Dnipro, Poltava and Kropyvnytskyi. These cities have become the main centers for migrants coming to large regions, in particular internally displaced persons (IDPs). In contrast, 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 focusing on new realities, in particular, security and seasonality.

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