Property and
infrastructure in Ukraine
Editor’s note: The views and opinions expressed herein are those of the interviewee and do not necessarily represent the views and opinions of The Kyiv Independent, KPMG International Limited, or any KPMG member firm.
Despite the apparent paradox of discussing property investment during an all-out war, Ukraine’s property market has carried on, offering foreign investors opportunities in everything from apartments and hotels to offices, factories, and warehouses.
This doesn’t mean navigating the real estate sector is easy. Risks are higher than in other countries, and with a relatively undeveloped mortgage market, transactions tend to be heavily cash-driven. Investors should be prepared to come with deep pockets or be ready to wade through the banking system to secure a loan, though often at steep rates.
But with some local help, investors can mitigate the risks, overcome bureaucratic and language barriers, and find great opportunities.
For those already investing in real estate in Ukraine, the promise is clear.
“Prices are going to potentially triple in 10 years,” says James Canning Cooke, CEO of Staunton Partners, a real estate advisory firm headquartered in Kyiv.
“When Ukraine joins the European Union, it’s going to allow a lending market, get rid of any vestiges of government and judicial corruption, and allow seamless property transactions,” he said.
While investment in Ukraine’s property and infrastructure hasn’t stopped during the full-scale invasion, “its focus — mainly amongst domestic investors — has changed, with different industries coming to the fore and taking on added importance in a new context, like logistics and cross-border infrastructure, energy and municipal infrastructure, as well as industrial parks and manufacturing sites,” according to Andriy Tymoshenko, partner and head of management consulting at KPMG Ukraine.
Nevertheless, foreign investment in the sector remains limited, with a few exceptions.
Last year, Dutch-based Arcona Property Fund acquired a residential development site in downtown Kyiv for $2 million, paid with $1.2 million in cash and $800,000 in fund shares.
The bigger projects may be more likely to come postwar, if reconstruction begins in earnest. Investors and businesses are expected to play a central role in covering the more than $500 billion needed to rebuild the country.
“There’s a really interesting business opportunity in all of these things, in offices, logistics, retail, housing, power supply, water supply, and roads,” said Lisa Kelvey, global head of infrastructure & transport at KPMG International.
“There will be a number of opportunities for businesses and investors to get involved in reconstruction. The goal for Ukraine will be to make sure things are structured in a way that makes investors feel that Ukraine is an attractive and safe place to do business.”
When it comes to planning ahead for such developments, Kelvey has a clear vision for what foreign investors should be aware of in advance. Aside from investors often underestimating the amount of time it takes to get infrastructure and property projects up and running, as well as the modest but steady nature of the returns involved, Kelsey notes that “the number one problem is not always understanding the local context well enough.”
“Often the biggest mistakes investors can make (when entering new markets) is trying to import models from elsewhere, trying to import ways of doing things without understanding the local context and really bringing that local flavor into what you’re doing.”
“For me, missing the local understanding and missing the local context is the biggest mistake that foreign investors can make.”
Nonetheless, if investors can find their footing and make the right connections with the local business community, then Ukraine has the potential to be “one of Europe’s most significant reconstruction stories of the late 2020s,” said Nicolai Kiskalt, leader of private sector pillar at KPMG Ukraine Gateway.
“With the right framework and international support, the country’s infrastructure and real estate sectors can become drivers of sustained economic growth and Ukraine’s European integration in the years ahead.”
The Kyiv Independent, in collaboration with KPMG Ukraine Gateway, spoke with investors and property experts to compile this fourth guide in our series on investing in Ukraine, outlining the risks, opportunities, and key insights for property investors.
Risks
- Russia’s ongoing invasion remains the single largest threat to Ukraine’s property and industrial market.
- Since February 2022, Russia has caused over $195 billion in damage to Ukraine’s buildings and infrastructure, 14% of its housing stock..
- War risk insurance is scarce, especially for residential properties, meaning investors often cover damages themselves.
- Limited commercial insurance is available via ARX (Canadian firm Fairfax), the U.S. Development Finance Corporation, MIGA, and Lloyd’s, but access is difficult.
Regional risk variations
- Western Ukraine: Lviv, Zakarpattia, Chernivtsi, Ivano-Frankivsk — safer regions with internal migration, new business opportunities, and rising property prices.
- Kyiv: Rebounding construction but frequent attacks; the most expensive city with moderate risk.
- Odesa: While its ports are the targets of Russian strikes, the UNESCO-listed city center has been largely unscathed. Odesa is a hub for tourism and trade, even during the war.
- Southern industrial belt: Zaporizhzhia, Kherson, Mykolaiv — cheap properties but high-risk areas due to partial occupation and ongoing attacks.
- Eastern industrial hubs: Kharkiv and Dnipropetrovsk regions — distressed warehouses, factories, and innovation centers.
- Work with reputable local advisors to navigate bureaucratic, legal, and cultural hurdles.
- Local knowledge is critical for assessing risks and opportunities, especially in high-risk or damaged areas.
- Ukraine lacks a robust mortgage market; cash transactions dominate.
- Listings are fragmented across multiple websites and platforms (like Dim Ria, LUN, OLX), and are often opaque or incomplete.
- Risk of double sales, forged documents, unpaid utility bills, or unauthorized renovations.
Opportunities
- Foreigners can buy apartments, shopping-mall units, warehouses, and offices without special permits.
- Agricultural land is still off-limits to purchase due to land market laws, but can be leased.
- Avoid low-quality Soviet-era buildings (Khrushchevkas and Brezhnevkas, named for the Soviet leaders they were built under) and new-builds where developers request payment before completion.
- Offices: Ukraine historically lacks high-level office space; demand is likely to grow post-war.
- Hospitality: Hotels and accommodations will be crucial for incoming business and tourism.
- Logistics & warehousing: Growing IT, e-commerce, and delivery sectors require modern distribution centers.
- City-center apartments in historic buildings offer high short-term rental yields (10–12%) and long-term value growth, according to James Canning Cooke, CEO of Staunton Partners, a real estate advisory firm headquartered in Kyiv.
- Lviv is emerging as a hotspot similar to Krakow and Tallinn, with pre-Soviet apartments likely to appreciate.
What to know before
closing the deal
- Use a real estate lawyer to verify that the seller's claims match the state registries.
- Watch for double sales, forged documents, unpaid utilities, and unauthorized renovations.
- Investors can appoint a Ukrainian lawyer or agent via power of attorney to sign documents and register property if they cannot be in Ukraine personally.
- Avoid cash payments due to import limits and security risks.
- Bank transfers are safer, and major banks allow non-resident accounts and loan access with proof of income and a down payment.
