How is the situation in the rental market changing?

05.04.2017 | Real estate

Over the past year in Kiev, rental apartments have risen by about 20%. Realtors note: the market was affected by economic growth, devaluation of the hryvnia and the growth of utility payments. This year, prices will also increase, but there are no reasons for sharp jumps.

How communal influenced the rental of housing

real estate market ukraineAt the beginning of the year, between tenants and landlords was an attempt to agree who will pay for the communal service, says representative of the Association of Realtors of Ukraine Arthur Pilipchuk. In this case, according to the Kiev realtor Maxim Baburyak: landlords often agree to cover part of the expenditure on the communal. “Before, this really was not the case – in the segment of cheap housing the tenants themselves paid for utilities.Now, when the communal can cost as much as rent, many are trying to negotiate with landlords and sometimes such attempts end in success,” – says the expert.

“Before, this really was not the case – in the segment of cheap housing the tenants themselves paid for utilities.Now, when the communal can cost as much as rent, many are trying to negotiate with landlords and sometimes such attempts end in success,” – says the expert.

Large amounts in payments push Ukrainians to search for small apartments in energy-efficient homes. According to People’s Deputy Alain Babak, in Europe before renting an apartment, check the results of energy audit, which will show how much you will have to pay for heating and other utilities. In the Ukrainian realities, realtors are advised to get acquainted with the payments for the last month before entering into a lease.

Almost every second rented apartment is a one-room apartment. At the same time, only 13.8% of Ukrainians rent three-room apartments.

Another result of tariff increases – Ukrainians, who previously did not hurry to rent an empty apartment, now have to look for tenants. If you can make money in big cities, small owners are ready to let the tenants free of charge if they pay in time on utility bills.
“If earlier the owners of several apartments could for some reason keep a vacant apartment, now it becomes a real luxury,” says Maxim Baburyak.

How prices change

During the year, prices for rental apartments in the capital grew by about 20%. “If we take the 2016th year, there is an increase of about 20%, but there is no exact statistics, it’s not the stock market, not everyone brings data to the registries.” It should be understood that many factors influence the market. Very different demand, or vice versa, “- says Arthur Pilipchuk.

For a thousand hryvnia you can rent an apartment in Donetsk or Lugansk regions. From 1500 to 2000 thousand – in Sumy and Ternopil. The most expensive rent in Kiev (almost 6000 hryvnia), Odessa (5257 hryvnia) and in Lviv (more than 4000 hryvnia). If in January last year a one-room apartment in the capital could be rented on average for UAH 5,453, then in December the rental price increased by 9% – up to UAH 5,985. Approximately the same – 8% – went up “kopeck piece” – from 7,908 to 8 UAH hryvnia.

The situation in Kharkiv is most stable. Here, prices increased slightly in average, by 2-3%. For rent “1 rooms” in January asked about 4310 hryvnia, in December – about 4362 hryvnia (1.2% more).

“The rise in price of housing is a natural consequence of a number of factors, according to Gosstat, if in January 2016 the consumer price index was 108.9% compared to 2015, then in December it grew to 121.2%. In general, in Ukraine for 2016 it increased almost 1.5 times – from 4,322 to 6475 UAH. The increase in the cost of basic goods leads to the fact that people increase the cost of services (including rent) in order to remain In positive territory, “analysts note.

Arthur Pilipchuk is sure, there are no reasons for the sharp rise in the value of real estate this year. “At the moment, in 2017, I see no reason to increase the cost of rent, if there are no external factors. Of course, there are political and military actions, but these are the global factors that can affect everything. “I think that the next six months will be all stable,” Arthur Pilipchuk is sure.

At the same time, realtor Maxim Baburyak notes: on average for the year, apartments can rise in price by 15-20%. This, according to the expert, depends on the economic situation in the country. “There are many factors that affect the market: salaries are growing, more jobs are being created, people are looking for apartments more actively – as a result, property prices are rising,” the expert says.

How to rent an apartment

More than 80% of ads for renting apartments, experts say, place intermediaries. Each city has its own “dachshund” for brokerage services. For example, in Kiev, the help of a realtor will cost 50% of the monthly rent of an apartment, in Lviv brokers take 100%. “In Kiev, it is accepted to immediately pay for the first and last month of living in an apartment, and therefore our services cost 50%.

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