Housing prices in Ukraine have increased by 12.7%, marking the fourth consecutive year of rising costs.

As previously written by the Judicial and Legal Newspaper, housing prices in Ukraine have increased in both the primary and secondary markets. In 2024, compared to 2023, housing prices rose by 12.7%. This was reported by the State Statistics Service.

The chairman of the parliamentary Committee on Financial, Tax, and Customs Policy, Daniil Getmantsev, stated that although this figure is the lowest in the past decade (in 2021, the growth was 14.8%), the trend of continuous double-digit increases in housing prices for the fourth consecutive year is concerning. Since 2021, real estate has increased by 67.9%, outpacing inflation (58.1%) and the rise in the dollar exchange rate (48.4%), as well as more than 3.5 times the increase in real average wages.

The primary housing market has been growing at an even faster pace—prices for new buildings in 2024 increased by 15.0%, while in the secondary market, they rose by 11.6%. Overall, from 2021 to 2024, housing prices in the primary market have increased by 68.7%, and in the secondary market by 67.3%.

The situation in the real estate market has been significantly complicated by the full-scale war. Millions of square meters of housing have been destroyed, and the total losses from damaged and destroyed housing at the beginning of 2023 were estimated at $60 billion. A new report from the World Bank, the European Commission, and the UN (“Fourth Rapid Assessment of Damage and Needs for the Reconstruction of Ukraine” - RDNA4) is expected to show even higher figures.

Despite challenges with the accessibility of mortgage lending, the government is attempting to address the housing issue. The Prime Minister of Ukraine, Denis Shmyhal, recently stated that one of the key priorities of the Cabinet's work is the restoration of housing for Ukrainians.

According to him, the following has already been paid:

- 18 billion UAH in compensation for damaged and destroyed housing, enabling 90,000 families to restore or purchase new homes.

- 15 billion UAH has been allocated for a new compensation program for internally displaced persons, allowing 10,000 families to receive funding for real estate purchases.

However, the scale of the problem and the rapid increase in housing prices indicate that solving it will require significant time and additional efforts.