Looking at Ukraine’s real estate market trends, and considering the exact taxation of real estate operations of non-residents of Ukraine on the Ukrainian market
KYIV, UKRAINE, August 25, 2021 /EINPresswire.com/ — Since 2014, when the cost of real estate in the Ukrainian secondary market has dropped by 40% from a year before (due to the Russian war escapade), now, the local economy has completely restored and shows large growth in 2021. World countries suffered from Covid-demics restore, as did Ukraine. In fact, it is one of the headliners in the world’s restoration trends, showing quite large bounciness.
Ukraine property real estate trends
In 2014-2015, the real estate price drop on the housing market in Ukraine was about 40% from the previous years, and that has recovered very slowly since then, yet, showing +5%… +10% annually. In 2018-2019, the prices returned to 90% of the 2013 level, stepping a bit back by 7% in Covid-demics and completely regaining their fullness by the end of 2020. In the spring and summer of 2021, the biggest part of real estate building companies and sellers on a secondary market increased prices by 15%-30%-40%, trying to overcompensate for the Covid-demics lowering and all previous stagnating years. Other important factors also played their huge role:
• Significant stabilization of UAH (national currency) compared to dollar and Euro, increasing by 20% in some periods of 2020-2021
• Simplification of bureaucratic procedures in construction and real estate development, which now take about 10 bureaucratic processes to complete within 70-100 days (being lowered from previous 200-1500 days), taking only 4.4% of the cost in new construction (from previous 20%-75% in 2013 and years back)
• Improving Ukraine in Doing Business rating – to 71st position in 2019 compared to 112th in 2014
• The ongoing digitalization of the country’s bureaucratic procedures and processes for population and legal entities, allowing to digitize over 50% of the state’s paperwork and taxation so far, bringing them to a smartphone (with the end aim of over 90%). This makes Ukraine the most innovative digital country in the world in 2021, with its IT sector booming growing, already creating over 20% of the country’s GDP
• Decreasing war on East
• Ever-increasing pro-NATO and pro-EU steps of Ukraine, which will bring Ukraine to those unions by 2035 at worst.
What operations with real estate investments non-residents of Ukraine are allowed to do
As a foreigner, one could embrace various strategies in real estate investment, including:
• Ownership of the private and commercial real estate
• Inheriting, selling, and buying real estate
• Renovating and reselling
• Letting owned or rented premises to lenders and sub-lenders.
The best time to invest in Ukrainian real estate is now, as prices for all types of objects keep growing, expected to grow by another 50% from current levels by the end of 2022 – mid-2023. Not only capital, Kyiv, is worth investing in today but also other large regional centers like Lviv (the biggest IT and digital hub of Ukraine today), Dnipro, Kharkiv, and Odessa. The only two regions worth withholding investments are Donetsk (flooded with Russian militaries and pro-Russian paid combatants) and Crimea (a region of Ukraine with a sheer sea line temporarily occupied by the Russian regime).
Housing market predictions 2021
It looks like real estate owners in Ukraine have decided to overtake European prices disregarding the quality of their objects (the biggest part of which is still in the Soviet-era state and requires extensive renovation). However, prices grow no matter what the condition of the object is – that’s the specificity of the Ukrainian market, which is pleasant for investors. Additional factors widely contribute to Ukraine real estate market growth:
1. A lot of locals understood the possibility and advantages of remote work, relocating to rural places, raising prices for regional coworking places, private houses, and apartments
2. Internet and mobile connection coverage becomes better across rural regions due to governmental programs
3. Lowered cost of lending for the residential estate for individuals from banks thanks to a governmental program pumps up more cheap money into the economy, increasing the primary market of newly constructed objects and giving more property investment opportunities.
Gil Attia
DGY investments
+380 98 456 6125
email us here
Visit us on social media:
Facebook
LinkedIn
You just read:
News Provided By
August 25, 2021, 13:01 GMT
EIN Presswire’s priority is source transparency. We do not allow opaque clients, and our editors try to be careful about weeding out false and misleading content.
As a user, if you see something we have missed, please do bring it to our attention. Your help is welcome. EIN Presswire, Everyone’s Internet News Presswire™,
tries to define some of the boundaries that are reasonable in today’s world. Please see our
Editorial Guidelines
for more information.
Submit your press release
>>> ad: Don't Miss Today's BEST Amazon Deals!
Originally Appeared Here