June 7, 2025
House instead of apartment: how the demand for suburban housing has changed in Ukraine thumbnail
Economy

House instead of apartment: how the demand for suburban housing has changed in Ukraine

House instead of apartment: how the demand for suburban housing has changed in UkraineMore and more Ukrainians prefer housing outside the city. Now every third person is considering buying a private house.”, — write: unn.ua

Previously, a country house in Ukraine was more of a “dacha story.” The pandemic, the war, and the transition to remote work have fundamentally changed the real estate market. So today, every third Ukrainian is considering buying a private house. UNN spoke with Ivan Kudoyar, Chairman of the Board of the Union of Real Estate Consultants, to find out why Ukrainians are increasingly choosing housing outside the city, what exactly they are buying, and how preferences have changed.

Reorientation to suburban housingAccording to the expert, the demand for suburban real estate in Ukraine is growing. Currently, every third Ukrainian is considering a private house for living.

Before Covid, before the twentieth year, about 15–16% of people wanted to live in a house. Before the war, 25% of people were ready to exchange an apartment for suburban housing, and now – 35%

Among the most common reasons why Ukrainians choose suburban housing is safety. At the same time, the possibility of working remotely only contributes to moving outside the city.

However, the increase in demand does not mean a revival of the market. The situation remains difficult, in particular due to political instability.

The market is a little lame due to political misunderstandings. To say that they began to buy less is not so. If we take it as a whole, the demand for suburban real estate has increased. It has grown over the past year or two. But the real estate market as a whole has subsided

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Popular formats of suburban housingAccording to the expert, the greatest demand is for small townhouses priced up to $100,000.

Houses up to 100 thousand dollars are sold quite actively. These are townhouses. That is, it is a common wall and two entrances. Or four. 10 acres were divided and here – a block type house

He explained that people have a psychological barrier of price: up to 100-150 thousand dollars. At the same time, they want to live in nature, have their own plot of land and space. Therefore, small houses are in favor. “They are small, 100–120 meters, land – two acres. People buy this because they want to be in nature, live away from the subway, have their own office. In addition, there are government quarters and industrial enterprises in the city, people are afraid,” Kudoyar says about the advantages of suburban housing.

At the same time, large houses are less popular due to the high price and excessive area.

“Full-fledged houses, in which there are 10 acres of land, and 150-200 square meters, they cost more, 200-250 thousand. And such houses, of course, sell much worse. And even developers adapt to the realities, and sell the house in parts,” the expert says.

And although the market has changed significantly, prices have not decreased despite the war. This is due to the exchange rate and, accordingly, the increase in the cost of the construction process.

They (houses – ed.) have not become cheaper. Maybe a little. But the buyer has become more demanding – he wants a beautiful facade, stone, amenities. And all this has become more expensive. The cost price increased by 40%. The developer also does not want to work at a loss

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Cottages are a popular but expensive optionAnother common option is cottage towns. But it is not suitable for everyone, because it costs significantly more, although it has certain advantages. Usually this is a developed infrastructure.

This is a slightly different concept, it is more expensive. This is due to security, some amenities, there they already organize their own store, their own cafe, and their own playground. And people like it. Therefore, they are ready to pay more and live in such conditions

But there is another disadvantage. Due to the fact that cottages are expensive and people buy them reluctantly, they are not built quickly.

“That is, in other words, having bought a house in a cottage village, you can live in construction for many years. Trucks will drive, roads will be broken. Well, that is, it is still somewhat uncomfortable,” he explained.

Changing buyer prioritiesModern suburban houses take into account the new realities of life. According to the expert, it is now very popular to make shelters in houses, install a charging station for electric vehicles, install solar panels – that is, to make your home as autonomous as possible and suitable for use in any conditions.

Option of planning a bunker room for long-term living

Option of planning a bunker room for long-term living

Young people also influence the culture of construction. According to the specialist, modern housing is becoming more beautiful, including because new buildings are usually bought by young people who “travel a lot, see, know”. In addition, young people do not prefer too large areas of houses. Conditionally speaking, the average buyer is now more willing to choose a house of 100-120 functional squares than a house of 600 squares, which will “eat up” a lot of money for its maintenance and at the same time the area will not be used in full.

Modular houses are not in demand in UkraineRegarding modular houses, according to the expert, there is almost no demand for them due to the lack of a culture of modular houses and the lack of a significant difference in price between such housing and capital housing.

“Here, a capital house will cost you 150 thousand dollars, and you moved in. And a modular house will cost, well, 130-140 thousand – and you moved in. It will not cost 80 – the same house, with the same filling,” the expert explains.

A modular house does not imply a capital foundation. And in the place where we live, we need capital foundations, deep, concrete ones. And they are on some piles and pipes. That is, a modular house implies a light foundation. Light structures. When people go there, sometimes the floor shakes, and it deteriorates faster with this foundation

Kudoyar also noted that in Ukraine such construction is more often considered temporary.

“We take modular ones as a dacha, as some kind of gazebo, as a bathhouse, a summer kitchen. I bought a small 50 m modular house there and live in it while the main one is being built. And then I left it to my mother, or as a summer kitchen, or as a guest house. Well, that is, well, this is not like a capital dwelling. We don’t have such a trend yet, it hasn’t caught on,” says the expert.

And the reason for this is, among other things, technical. According to the specialist, the sewage system, for example, must go underground at least 1.2 meters, otherwise it will freeze in winter and spoil. That is, the foundation must be warm. And a modular house does not provide for this, so its use throughout the year in our climate is questionable.

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Investment attractiveness of suburban real estateInvesting in suburban real estate has both attractive prospects and certain challenges. Such an asset can bring a stable income or increase in price, but at the same time requires a thorough analysis of related costs and management features.

OLX Real Estate

OLX Real Estate

Advantages of investing in suburban real estate1. Opportunity to receive rental income

Houses and cottages outside the city can be rented for short-term rentals for recreation, as well as for a long period.

2. Growth of capital value

Over time, real estate objects outside the city can increase in price, especially if the region is actively developing. This creates the possibility of a profitable sale in the future.

3. Expansion of the investment portfolio

Investing in suburban real estate contributes to the diversification of assets, which reduces overall risks for the investor in case of fluctuations in financial markets.

4. Prestige and uniqueness

Such objects often have individual features or are located in picturesque places, which makes them attractive to both tenants and the owners themselves.

Cons and risks1. Maintenance costs

The house requires constant care – heating, water supply, security, landscaping. Maintenance can be much more expensive than in city apartments.

2. Management complexity

If the object is located at a great distance from a large city, control over the condition of the property and communication with tenants are complicated. You may have to contact management companies.

3. Seasonal fluctuations in demand

A dacha or cottage, focused on recreation, usually brings income only in the warm season. This creates a risk of downtime and reduced profitability.

4. Dependence on the market

Prices for suburban real estate can be sensitive to the economic situation, changes in legislation or demand in a particular region, which affects the liquidity of the asset.

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Regional features of the marketIn 2025, the suburban housing market in Ukraine demonstrates significant regional fragmentation. Demand and prices are influenced not only by location, but also by the availability of logistics, the stability of electricity and heat supply, proximity to megacities and, of course, the level of threats from the Russian army.

Thus, in the Kyiv region, there is a restrained demand for houses within a radius of up to 30 km from the capital: in the directions of Vyshhorod, Bucha, Irpen, Hostomel, Brovary and Obukhiv.

Compact houses up to 120 m² are in trend. Plots for construction are also being bought quite actively, although the growth of prices is restrained due to the risks of repeated escalation.

The western regions – Lviv, Ivano-Frankivsk, Zakarpattia and partly Chernivtsi – are among the most stable in the market.

After the wave of internal migration in 2022–2024, a stable average demand was formed here, especially in the “second home” and dacha segment. Cottage towns with complex infrastructure are actively developing near Lviv and Uzhhorod.

Photo: Encyclopedia of New Buildings

Photo: Encyclopedia of New Buildings

In Central Ukraine – Vinnytsia, Khmelnytsky, Cherkasy regions – the demand for affordable houses with a garden is growing – for self-sufficiency and seasonal living.

The market here is characterized by low competition, so prices are moderate. Popular locations with natural resources (water bodies, forests) and good access to the regional center.

In the South and East, the market is mostly frozen or reoriented. In the frontline regions (Kharkiv, Donetsk, Luhansk, part of Zaporizhzhia and Kherson regions), the suburban real estate market is practically not functioning due to hostilities.

In Odesa, Mykolaiv regions, there is demand, but it is limited – buyers choose relatively safe areas away from potential strike points. Popular directions near Odesa are Chornomorsk, Fontanka – mainly for dachas.

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Conclusions and forecastsThe suburban real estate market in Ukraine is moving to a new phase: instead of “luxury for the sake of luxury”, practicality, technology and security will dominate. This opens up new opportunities for both investors and sellers who will be able to offer a product that meets the changed expectations of buyers.

The demand for autonomous houses will grow. In the context of interruptions in electricity and water supply, the demand for energy-independent houses with alternative energy sources will only increase. The market is likely to establish a trend towards “smart square footage” – small, but well-designed houses will become the mainstream for the first home, especially among young families. The role of design and ergonomics will increase.

Housing will increasingly be perceived not just as a roof over your head, but as a space that should be aesthetic, comfortable, and as adapted as possible to the modern lifestyle.

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