Residential Real Estate Leases - Ukraine

The Residential Real Estate Leases market in Ukraine is expected to generate a revenue of US$4.73bn by 2024.
House leases hold the largest market share, projected to reach a market volume of US$3.92bn in the same year.
The market is anticipated to grow at an annual growth rate of -0.19% from 2024 to 2029, resulting in a market volume of US$4.69bn by 2029.
The demand for residential real estate leases in Ukraine is steadily increasing due to the growing population and urbanization.

Definition:

The residential real estate leases market refers to the market where landlords and tenants enter into agreements for the rental of residential properties, such as apartments, houses, and condominiums. The lease outlines the terms of the rental agreement, including the duration of the lease, the amount of rent to be paid, and the responsibilities of both the landlord and the tenant. The lease may also include provisions for security deposits, maintenance and repair obligations, and renewal options.

Structure:

The residential real estate leases market comprises the lease of houses and apartments.

Additional information:

The residential real estate leases market includes the following KPIs: the revenue generated by real estate leases, the number of real estate leases, the average revenue per real estate lease, the share of dwelling type of tenants, and the average room per tenant. The dwelling type shares comprise the shares of the renter population that lives in houses and apartments.

Residential house and apartment leases

Real estate transactions
Commercial real estate
Accommodation services, such as Airbnb

The Residential Real Estate Leases market in Ukraine has been experiencing significant growth in recent years.

Customer preferences: One of the main reasons for this growth is the increasing demand for rental properties in the country. Many people in Ukraine are opting to rent rather than buy a property due to various reasons such as financial constraints, job mobility, and the desire for flexibility. Additionally, the younger generation in Ukraine, who are more mobile and career-focused, prefer the convenience and flexibility of renting a property rather than being tied down by a mortgage.

Trends in the market: Another trend in the Residential Real Estate Leases market in Ukraine is the rise of co-living spaces. Co-living is a concept where individuals or small groups of people live together in a shared space, often with shared amenities and common areas. This trend has gained popularity among young professionals and students who are looking for affordable housing options and a sense of community. Co-living spaces offer a more affordable alternative to traditional rental properties and provide opportunities for social interaction and networking.

Local special circumstances: The political and economic situation in Ukraine has also played a role in the development of the Residential Real Estate Leases market. The country has faced significant challenges in recent years, including political instability and an economic recession. These circumstances have made it more difficult for individuals to secure financing for purchasing a property, leading to an increased demand for rental properties. Additionally, the ongoing conflict in eastern Ukraine has resulted in the displacement of many people, further driving the demand for rental properties in other parts of the country.

Underlying macroeconomic factors: Several macroeconomic factors have contributed to the growth of the Residential Real Estate Leases market in Ukraine. The country has experienced a steady increase in urbanization, with more people moving to cities in search of better job opportunities and a higher standard of living. This urbanization trend has created a higher demand for rental properties, particularly in major cities such as Kyiv, Lviv, and Odessa. Furthermore, the overall economic growth in Ukraine has resulted in an increase in disposable income, allowing more people to afford rental properties. The government has also implemented various reforms to improve the business environment and attract foreign investment, which has had a positive impact on the real estate market. In conclusion, the Residential Real Estate Leases market in Ukraine is experiencing significant growth due to increasing customer preferences for rental properties, the rise of co-living spaces, local special circumstances such as political and economic challenges, and underlying macroeconomic factors such as urbanization and economic growth.

Data coverage:

Figures are based on total and average revenue of residential apartment leases.

Modeling approach:

Market size is determined by a bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

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Residential Real Estate Leases - Ukraine

Volume

Analyst Opinion

Revenue

Affordability

Real Estate Type

Living Space

Methodology

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