Prices are falling again: why rental rates are decreasing in Kyiv

In Kyiv, rental housing has once again started to become more affordable.

Ukrainian media reports this development.

After a summer surge in prices, demand for rental apartments has sharply declined and is currently at approximately the same level as in July, which is traditionally considered the “dead season” in the rental market. Due to this, property owners are already willing to offer discounts. Furthermore, in October, prices may further decrease, especially for apartments in newly constructed buildings.

This year, a record number of out-of-town students moved to Kyiv for university. Since most universities have abandoned remote learning, and not all dormitories can accommodate everyone, students have actively started looking for rental housing.

“In August, the demand for rentals surged. There were instances where ten renters were interested in a single apartment. Property viewings were met with genuine enthusiasm. Most apartments were rented out within a few days, and the best offers were gone within hours. As a result, many landlords increased their prices by 10-15%,” say real estate agents.

To a large extent, real estate agents themselves contributed to the heating up of the market by advising property owners to set higher prices and renters to “secure a rental before it becomes more expensive.”

But now the situation has drastically changed.

“Demand has plummeted significantly. Students have already found accommodation, and after September 10, the influx of those coming to Kyiv for work has also decreased. It’s worth noting that the demand for commercial real estate rentals is also declining. Out-of-town entrepreneurs who planned to start new projects in Kyiv in the fall have already secured spaces and resolved issues with rental housing for their staff. Therefore, the number of renters looking for apartments now is roughly the same as it was in July. The seasonal surge has faded away,” say real estate agents.

In August, the average rental period for an average apartment was 3-4 days, at most a week. Now, there are still listings in databases that were submitted in early September (three weeks ago).

“There’s no frenzy of property viewings and hordes of people eager to move into any apartment as long as it’s cheaper,” note experts.

This has already affected rental prices.

“The seasonal markup of 10-15% on some properties has completely disappeared, and on others, it has decreased,” experts point out.

Real estate agents mention that many new apartments that were not previously rented out have been put up for rent.

“Some apartments have owners who left for Europe at the beginning of the war and simply locked up their properties. Then they returned home for the summer and have now left again in the fall. This time, they plan to rent out their property since they intend to stay in the EU for at least a year,” real estate agents explain.

Real estate agents do not rule out that rental prices may continue to decrease.

“There’s a significant imbalance between supply and demand for rentals in Kyiv. Many apartments are sitting vacant. By winter, when higher utility bills need to be paid, landlords may agree to offer discounts,” say experts.

Apartments could become cheaper by another 5-10%.

According to real estate agents, rental rates for Kyiv apartments will also depend on the military situation and the threat of blackouts this winter. If there are power outages, as there were last year, apartments with gas stoves and in buildings that are “less prone to outages” may increase in price.

Many owners of luxury apartments have already agreed to fully cover the cost of utilities, including electricity (which was always paid separately based on the meter).

The changes in rental rates for apartments in Kiev will also depend to a large extent on the military situation and the threat of blackouts this winter. If there are power outages, as there were last year, apartments with gas stoves and in buildings that are “less prone to outages” will increase in price.