Shelling of Kyiv: How the real estate market reacts during military operations

Even in the midst of the shelling of Kyiv, interest in real estate in the capital is not only not diminishing, but is growing.

During the last four days, when Kyiv was subjected to massive rocket attacks, the real estate market continued to function.

According to Olena Gaidamakha, president of the Ukrainian Real Estate Association, who spoke to Delo.ua, the market remains active among both buyers and tenants.

"Usually, in the period before the war, from January 1 to January 10, the Kyiv market was calm. The exception was last year during the blackouts. Even during the blackouts, deals were made. Today, we are also exchanging letters with clients, and today one client is coming to view the property. There is still interest in real estate," the realtor explained.

According to Gaydamakha, purchase and sale and lease agreements continue to be signed even during the shelling.

Nevertheless, blackouts are making adjustments to the characteristics of the properties and the neighborhoods chosen by clients.

"Solomenskyi district, which is often the target of shelling, is less popular now. But other districts remain important for buyers. There are even inquiries for commercial real estate - renting shops and offices in the city center. Viewings are also underway," noted the president of the Ukrainian Real Estate Association.

According to the realtor, most of the lease agreements are for one-bedroom apartments and are short-term, most often for six months.

According to her, the agreements take into account additional clauses that take into account force majeure circumstances in which people rent housing. For example, there is a clause on "return of the collateral value in case of active hostilities on the streets of Kyiv." Or there is also a clause "if the apartment becomes uninhabitable".

Clients in today's market, mostly IDPs, believe that living in Kyiv is safer than living anywhere else in Ukraine.

"These people believe that the capital is the most secure. And that housing in the capital is more affordable than in the western regions. In Kyiv, for example, a very simple two-room apartment can be rented for UAH 8-10 thousand in the Dniprovskyi and Desnianskyi districts. In Lviv, you won't find anything at those prices," Haydamakha explained.

Blackouts reveal a connection with rental prices. Apartments above 15 floors become cheaper as demand for them decreases. For now, residents of 25-story buildings have already installed generators, and if necessary, elevators are switched to them.