Real estate market despite the war: who is selling apartments in the Donetsk region and at what price

Photo: Jose Colon/Anadolu via Getty Images

During the full-scale war, a pattern has emerged: real estate prices are rising in western Ukraine and falling in the east. This is understandably due to people fleeing the war to safer regions, which are “welcomingly” increasing rental and sales prices for shelter. At the same time, real estate in the frontline regions of Donbas has its own price and is even in demand. The correspondent of Korotko pro found out why.

You can even buy real estate in Kostiantynivka

It is understandable that the cost of housing cannot increase in areas within reach of Russian artillery and drones. Constant shelling of cities and villages in the Donetsk and Luhansk regions has long caused real estate prices to plummet. However, rental prices have slowed their decline, influenced by the demand from military personnel for housing. And no less “welcomingly” than their countrymen in the west, the eastern Ukrainians are raising short-term rental prices for soldiers.

For example, in Druzhkivka, which is under constant enemy fire, renting a small private house starts from UAH 7,000 per month (according to the OLX portal), and apartments start from UAH 3,000 plus utilities. You can buy an apartment in Druzhkivka with at least $10,000 in hand. However, in some life situations, it is better to buy housing than to constantly pay rent.

Is housing being sold in Kostiantynivka, which is almost destroyed and being shelled by the enemy with all types of weapons? Imagine, two listings were found – a 52 sq. meter house and a 61.1 sq. meter apartment costing UAH 200,000 and UAH 300,000 respectively. True, instead of colorful photos, there are only technical passports and floor plans; the rest, apparently, must be imagined by the buyer, as the seller is in a safer territory and only has salvaged property documents, not photos.

But even for such unusual listings, there is demand, especially for the house: this listing received ten times more views than the apartment. Besides the inexplicable desire of someone to buy housing cheaply in a city shelled from all sides, there is another explanation.

There are even sale offers in Kostiantynivka, from where it is no longer possible to leave. Photo: olx.ua

A purchase with a long-term perspective

In light of the Ukrainian authorities’ recent promises to compensate for housing lost during hostilities with monetary payouts, various semi-legal companies have begun buying up houses and apartments that have been damaged or could potentially be damaged by missile strikes. There is a small chance that housing will be restored after the war, and in another case, compensation will be paid in the event of destruction. And the compensation can reach UAH 2 million! So, spending at most half a million doesn’t seem like a pity.

We will leave the legislative aspect aside: how legally feasible it is to acquire housing in cities that are no longer accessible, or how the state will pretend not to understand this cunning “multi-move” strategy. For now, one thing is clear: housing prices have suddenly increased in the epicenter of hostilities – and this is strange.

Thus, Kostiantynivka is a tiny, inexpensive real estate market where one can acquire housing cheaply for future profits, although the probability of receiving payouts in the near future is either zero or certainly not very high.

Kramatorsk and Sloviansk are holding their ground

In neighboring Kramatorsk, apartments and houses are being sold in large numbers, despite the dangerous proximity to the front line. It can even be said that it is quite a lively and large real estate market. For example, a good 3-room apartment with recent renovation in the center costs from UAH 1.2 million. The lower price range, starting with one-room apartments, starts from UAH 200,000, the upper limit for three-room apartments starts from UAH 700,000 and goes up. Both recent and “grandma’s” renovations are offered, with appliances and furniture practically remaining with the new owners.

Sloviansk is also holding its ground, both against the enemy and against price dumping in real estate. Resisting shelling, the city maintains its standard: there are many offers starting from UAH 250,000 for a one-room apartment in older buildings and up to UAH 750,000, UAH 1 million, and more – in the center with new renovations.

Of course, such apartments are not bought for compensation payouts; for that, dilapidated hovels would probably suffice. This housing is for the future, for the belief in a quick end to the war and reconstruction. Or – for high soldier payments and subsequent relocation to slightly calmer regions.

In Kramatorsk, there are many real estate offers on the market. Photo: olx.ua

Let’s compare the regions

If we roughly compare the same mass segment of real estate in different regions, the picture is as follows: a 45-55 sq. m apartment in Kostiantynivka can cost about UAH 200-400,000, in Kramatorsk or Sloviansk – from UAH 400,000 to UAH 800,000, in Dnipro – starting from UAH 1.2 million, in Kyiv – from UAH 2 million.

That is, living in Kramatorsk is on average 3-8 times cheaper than in Kyiv, and 5 times cheaper than in Dnipro. The main factors for cheapness are proximity to the front line, the risk of building destruction or damage, population outflow and lack of work, as well as low liquidity (you can buy, but selling it later will be even more difficult).

Therefore, the desire of some citizens to acquire housing in a cheap, albeit dangerous, region is understandable. Perhaps someday they will be able to receive money for these “meters” from the state, but for now, this is not in sight in the immediate future.