Ukraine has high-yield, low-risk investment opportunities in the area of real estate development. This is especially true in Kyiv, Odessa, and Lviv where these three markets see the highest real estate prices per square meter in the country.  The landlord and tenant law is classified among international publications as being pro-landlord.

Kyiv is seen as one of the most lucrative markets for development today. The rapidly growing IT sector (half of which is located in Kyiv), and the abundant middle-class population of the city help fuel this growth. It should be no surprise that Kyiv, the 7th largest city in Europe, ranks first in Ukraine for the highest return on investment.

Odessa is Ukraine's Black Sea resort city. The city set a record in 2015 for the number of tourists with 1.5 million people traveling to the coastal town. The cost of a hotel room rental has risen 30% in 2015 despite the fall in the currency. The primary factor contributing to this recent development is the annexation of Crimea (previously the top vacation destination among Ukrainians) and the subsequent movement of tourists to Odessa.

The proximity of the city of Lviv to EU borders (60 kilometers) and the rich cultural heritage make the city attractive to hoteliers. The city centre is classified as a UNESCO World Heritage Site, and more recently the city was named the cheapest travel destination in Europe. Many experts anticipate this location to be among the hottest development markets in Eastern Europe in the future.

Chernivtsi and Ivano-Frankivsk are two lesser known cities located close to EU borders and surrounded by the scenic Carpathian Mountains. Both cities are popular for their historical centres boasting a rich history of architecture and design. The Residence of Bukovinian and Dalmatian Metropolitans in Chernivtsi is a UNESCO World Heritage Site made famous by countless postcards. Ivano-Frankivsk is the largest city in proximity to mountainous tourist resorts and ski slopes. 

Data Points Sources

  • High yields in Kyiv ranging from 7.5% - 10.2% [1]
  • Pro-landlord rental market [2] 
  • Low transaction costs [3]
  • Moderate rental income tax rate [4]
  • Residential construction was up by 23.2% in 2015 [5] 
  • No major restrictions on foreigners buying property in Ukraine [6]
  • Average price (sq. m) of apartments in Kyiv is around €2,930 [7]
  • ​7 UNESCO World Heritage sites [8]
  • ​Odessa Opera ranked top 5 in the world [9]
  • ​11 mln hectares of forests, 20,000+ lakes, 71,000+ rivers [10]
  • 100,000+ meters of ski slope length [11]
  • ​Only desert in Eurupe - Oleshky Sands [12]
  • ​500 km of beaches and resorts [13]
  • ​Most affordable touristic destinations in Europe [14]
  • Class A mixed-use real estate [15]  

Real Estate & Tourism Sector

data points