Against the backdrop of the war, the Ukrainian real estate market is transforming, and the war is changing demand and prices on it.

This was discussed at the panel discussion 'Recovery through investment in construction, commercial and residential real estate' held on 4-5 July in Lviv. The event brought together over 1,000 participants: investors, business leaders, government officials, patrons, representatives of small, medium and large businesses, as well as representatives of foreign companies.

The summit was organized by the Ukrainian Center for Analytics and Research (UCAI) together with the International Investment Office. The event provided a platform for discussing investment perspectives in real estate in conditions of a war economy.

Among the discussion participants was Arseniy Nasikovsky, a junior partner of the DIM group of companies. In his presentation on the panel about the recovery of Ukraine through investments in real estate, he outlined the key changes in the market and new approaches that developers are forced to adapt to.

'Depending on the project class, construction costs have increased by 10-30%. At the same time, there is a significant shortage of qualified labor. For example, DIM is currently completing a 33-story building, and we have to involve several companies simultaneously to complete the interior decoration of the complex,' says Arseniy Nasikovsky.

According to him, today in Kyiv, investors' interest in the primary market has decreased. Before the full-scale war, 60% of sales were generated by investors in the early stages of construction, but now the end consumer predominates.

'The reason is not a lack of funds or a decrease in the number of buyers. Simply put, the cost of primary housing often exceeds the prices of ready-made properties in the secondary market nearby. The developer cannot sell below the cost, which has increased from 10 to 30%,' explains the expert.

According to the junior partner of the DIM group of companies, after the end of the war, residential real estate will remain the main investment segment, especially in the business and premium segments in the center of the capital.

'With the start of full-scale invasion, many developers in Kyiv have switched to working in the economy class segment, where the square meter costs up to $1,000. In this segment, many projects are emerging, including in Irpin, Bucha, and other suburbs of the capital. However, in these segments, a very high price increase is unlikely,' says Arseniy Nasikovsky. 'At the same time, in the central districts of Kyiv, where the number of plots is limited, the demand will increase, and the supply will not increase. This will contribute to a significant increase in prices in premium club buildings - up to $7,000-$8,000 or even $10,000 per 1 m²'

Participation of DIM company in International Invest Summit 2025