The National Bank Reports Growth in Real Estate Transactions

According to the Financial Stability Report from the National Bank of Ukraine, the number of real estate purchase transactions increased by 8% in Q4 2024 and Q1 2025 compared to the same period a year earlier. However, despite this upward trend, the pace of growth has slowed.

At the end of 2024, the operation of several state registries was temporarily suspended due to a cyberattack, which complicated the process of finalizing transactions. The resumption of these registries in early 2025 did not result in a significant boost in market activity.

During the war, there was a noticeable increase in tax-exempt property sales—these are typically first-time annual sales of property held for more than three years. Such transactions are often driven by relocation, particularly due to internal migration. The highest share of tax-exempt deals is observed in regions closer to active conflict zones.

Approximately two-thirds of all transactions occur outside regional centers, although the share of deals in large cities has slightly increased over the past year. The average apartment size remains near 48 square meters, while homes average up to 70 sq. m. The secondary housing market remains dominant: in 75% of cases, buyers opt for homes over 15 years old. Demand for new builds is declining, even in major cities where construction activity remains steady.

Despite rising incomes and generally optimistic consumer sentiment, the recovery in real estate demand remains sluggish. The key deterrents are ongoing military risks and general uncertainty about the future. Internal migration no longer fuels the market as strongly as before. Without improved security outlooks or accessible mechanisms for insuring military-related risks in mortgage agreements, a noticeable increase in demand is unlikely.