In spite of the disadvantages of the Ukrainian economy the country managed to prove its strength in fighting its problematic past and recovering itself. Strong economic growth goes on especially in the real estate sector which saw 50% property price increase and 100% land investment increase during the last years.
The majority of investors buy apartments in order to serve the needs of the increasing number of tourists visiting the country. Nowadays Ukraine has a high income from rent in major cities, such as Kiev where it makes up 8.8 % on average. Income is believed to be between 6.9 % - 10.2 %. The bigger the property, the lower the income;for example, 180 sq. m. property brings on average 7.5% income, while 50 sq. m.property brings 10.2 %.
There have been significant property price increases in the Ukrainian real estate market in the last years. Kiev saw 70% increase in property prices in 2003, the average property prices ranged from 2,588? to 3,304? for sq. m.In the period between January and March the rent sector developed and became the fastest growing sector showing 17.6 % increase. The property boom has recently slowed down and the prices started to fall, decreasing from 5.8 % in the second quarter of 2007.
- At present day income from rent is high in Ukraine, especially in such big cities as Kiev.
- Property rent market is easier for investors to enter.
- Operation costs between a buyer and a seller are low when buying a property.
- Reasonable income tax encourages potential investors.
- The country has shown good economic growth in the last years.
- Ukrainian nationals show eagerness to acquire new skills, get employed and use education to the full extent which will improve the working force of the country within time.
- Many Ukrainian cities are developing with a large number of new buildings, improved public services and incentives to develop tourism.