Property boom in Kiev, Ukraine

Property boom in Kiev, Ukraine
Property news
Tuesday, 05 June 2007
Writing in The Independent, London, Andrew Osborn reports that Ukraine, one of Europe's poorest countries, is enjoying an unlikely property boom. Some properties have rocketed in value by 600 per cent in the past three years, and prices in Kiev, the capital, reportedly rose by up to 25 per cent in the last two months of 2006 alone.

Kiev now bristles with cranes and building sites that work 24 hours a day, rushing to meet what appears to be an insatiable demand for new housing. Analysts say that if you bought a decent flat for the going rate in Kiev three years ago for just £15,000, it would now be worth £100,000, an increase of more than six-fold. Small city-centre flats in Kiev are now changing hands for £200,000 and more.

The huge price hikes have made Ukraine one of the most expensive places to buy property in Eastern Europe and the former Soviet Union. Many of the buyers are foreigners out to make fast money by renting or reselling. The most popular area to buy is Kiev, followed by Crimea (a Black Sea holiday destination) and the Carpathian Mountains.