Investment and development company City One Development has summarized its activities for the year. Here are the results of the team’s work over the past 12 months and conclusions regarding Kyiv’s primary real estate market.

In 2023, the company continued active construction on all previously started projects, including the business-class residential complex “Novopecherski Lypky” and the comfort-class “Svyatobor Park Resort.” Additionally, the developer, in cooperation with the Valeriy Kodetsky Charitable Foundation “UNITA,” continued to provide comprehensive assistance to the Armed Forces of Ukraine (AFU) and affected communities.

Throughout the year, City One Development and “UNITA” provided direct targeted assistance to nearly 100 different military units to meet their urgent needs. They purchased and delivered drones, off-road vehicles, generators of various capacities, solar panels, powerful power banks, construction materials and tools, a mobile sawmill, and more using their own funds.

City One Development and “UNITA” independently implement charitable initiatives and use their own funds for assistance. This year, in collaboration with the Ukrainian Congress Committee of America, they executed a large-scale project to supply Ukrainian military personnel with autonomous power sources: City One Development transported 2,000 American generators to Ukraine. Thanks to the company and the “UNITA” fund, the generators were retrofitted and adapted to the local electrical grid and delivered to the relevant AFU units based on preliminary requests from military units.

After the Russian destruction of the Kakhovka Hydroelectric Power Plant, for the second time since the liberation of Kherson, City One Development extended a helping hand to residents of the affected areas, delivering humanitarian aid and generators to residents of Kherson region, local State Emergency Service units, and military personnel on the adjacent front line.

Despite all the challenges of wartime, City One Development remains a reliable developer, actively building and continuing to fulfill its obligations to its clients.

Current Construction Projects:

  • Stage 7 of the “Novopecherski Lypky” business-class residential complex: Completion expected by spring 2024. The final stage includes four high-rise buildings (20-24 floors). Total building area: 75,222.56 m² (residential – 51,833.66 m², commercial – 1,395.36 m²), underground parking for 464 cars.

  • Stage 8 of the “Novopecherski Lypky” complex: Total building area: 101,700 m², underground parking – 18,925 m², commercial spaces – 11,800 m².

  • Stage 6 of the “Svyatobor Park Resort” comfort-class residential complex: 26 floors, total area: 48,917.84 m² (residential – 33,560.92 m², commercial – 819.99 m²).

  • Stage 7 of the “Svyatobor Park Resort” complex: Total area: 35,996.10 m² (residential – 23,576.40 m², commercial – 564.20 m²), new underground parking for 94 cars (shared with Stage 6), area: 1,198.5 m².

Market Analysis:

City One Development’s analysts summarized the primary residential real estate market in Kyiv for 2023, noting the following trends and conclusions:

  • Stabilization and Adaptation: 2023 was a period of relative stabilization and adaptation of the real estate market to the conditions of the full-scale war. Construction of liquid assets with sustained buyer demand continued.

  • Construction and Sales Resumption: Approximately 20% of residential complexes (RCs) in Kyiv did not resume construction and sales post-war onset. About half of the projects started before the war are in an intermediate state with minimal sales.

  • Exchange Rate Stability: The exchange rate remained stable at 36.6 UAH/USD according to the NBU rate.

  • Market Prices: At the end of 2023, the average price in Kyiv’s primary real estate market was $1938/m². Prices showed a -5% decline over the year, with a -1.5% drop compared to pre-war levels.

  • Price Dynamics: From the start of the war, the average price in Kyiv’s primary market increased by 4% in the first wartime year (2022), with the USD exchange rate rising from 27 to 37 UAH/USD over the same period. However, in 2023, due to reduced construction activity, prices fell by -4% in the first half and by -1% in the second half.

  • Segment Price Changes:

    • Premium-Class: -12%
    • Business-Class: -7%
    • Economy-Class: +5%
    • Comfort-Class: +2%

Market Trends:

  • Demand Shift: Reduced demand during wartime focused on the most liquid assets perceived as safe and profitable investments.

  • Market Volume Reduction: The market volume continued to decrease, with some projects not resuming construction or sales post-war onset, and new projects rarely entering the market. The total number of RCs reduced from 192 pre-war to 147 by the end of 2023, a -23% decrease.

  • Segment Distribution: The market now sees nearly half of projects positioned as comfort-class (46%), with economy-class representing only 10% (down from a majority in 2014). Business-class remains at 35% and premium-class at 9%.

  • Geographical Trends: The highest number and most expensive RCs are being constructed in Kyiv’s central and near-central districts on the right bank: Pechersk, Shevchenkivskyi, Holosiivskyi, and Podilskyi.

City One Development remains committed to its projects and customers, continuing to build and adapt in the face of ongoing challenges.