Design and renovation of apartments in Kyiv: why investing in housing remains relevant even under martial law

The real estate market has traditionally been a popular area for investment in Ukraine. An apartment with completed renovations and professional design can be rented out, achieving full payback in 10-12 years. However, the full-scale Russian invasion has prompted a reassessment of priorities. Could investing in real estate in Kyiv be viable under the current difficult circumstances?

Why Investment in Housing Remains Relevant

Considering the overall situation in Ukraine, investment in housing has become high-risk. This is due to regular missile strikes, economic instability, and the shifting frontline. However, the situation in cities close to the Russian border and combat zones like Kharkiv, Dnipro, Zaporizhzhia, and Odesa cannot be extrapolated to the entire country.

Kyiv remains the Ukrainian city where it is safest to invest in real estate. This situation is due to several factors, one of which is the presence of modern air defense systems. From a security perspective, the capital is better protected than other cities, as it has the largest population and houses the central government.

Moreover, the population of Kyiv is not decreasing; on the contrary, it is growing. People displaced from frontline regions and those seeking a better life choose the capital. Thus, apartments put up for rent or sale will not remain vacant. Additional factors include:

1. Stability. Unlike other asset classes, real estate does not significantly suffer from inflation. Housing can always be rented out at a good price, ensuring demand.
2. Demand. People arriving in Kyiv from the provinces need a place to live. This trend remains steady, as the capital is vibrant even under martial law.
3. Better alternatives. Investment in housing is less risky compared to other options, such as business investments, company stocks, or cryptocurrencies.

Benefits of Apartment Renovations for Rental

A designer apartment renovation is a serious financial investment but quickly pays off. Stable passive income is more relevant than ever in the face of economic and social uncertainty. Analysts note that an annual return of 8-9% is achievable, and it will remain steady over time.

Benefits of investing in housing include:

• The devaluation of the hryvnia does not significantly impact the housing market, as it adjusts to new conditions;
• Rising property prices allow for higher income if the apartment was bought and renovated earlier;
• Renters’ interest in housing remains steady regardless of circumstances;
• Many people, due to the worsening economic situation, cannot afford to buy housing or a mortgage and are therefore forced to rent.

What Type of Housing Is Best to Invest In

Among the wide range of offerings on the capital’s real estate market, some have higher demand. If one plans to buy an apartment and then do a designer renovation, consider the following factors:

• Well-equipped shelter, metro, or at least parking nearby—safety is the primary factor, so residents must be able to reach a safe place quickly in case of air raids;
• Energy efficiency—considering potential blackouts, it’s important to invest in apartments with alternative power systems, good insulation, and independent devices;
• Apartments on middle floors—due to power outages, elevators may not work, making living on upper floors challenging.

Investing in Apartment Renovations for Personal Living

Kyiv homeowners are in a favorable position under current conditions. However, this does not mean they should avoid renovations out of fear of missile strikes. Updating the interior goes beyond visual aspects. Over the last 10-20 years, technology has made significant strides, and old renovations lack modern advantages.

Investing in designer renovations provides the following benefits:

• Modern insulation materials retain heat in colder weather, reducing heating costs;
• Effective planning and furniture placement maximizes space;
• Territory zoning enhances room functionality, creating comfortable conditions for each resident;
• Updating wiring, lighting, and installing modern smart systems, outlets, and LED lights ensures savings and convenience.

Apartment Renovation Investments in 2024: Conclusion

Analyzing expert opinions and various factors, one can conclude that investments in housing renovations in Kyiv are risky but necessary. Despite martial law, missile strikes, blackouts, and other difficulties, the capital continues to live and develop, and the real estate market must adapt to new challenges.

Apartment renovation may initially seem like a costly expense with uncertain returns. However, these investments pay off, whether you plan to live there or rent it out.

If you fear renovations and prefer saving money, you might continue living in an old apartment with inconvenient furniture and layout. This brings no benefit, and if needed, such housing would not attract buyers or renters at a favorable price. So, invest wisely, but do so thoughtfully, choosing a reliable company for the work.