Kyiv market research: housing is rising in price, rents are growing by 25 – 35%, apart-hotels are outperforming apartments in terms of profitability

Ribas Invest and Ribas Hotels Group have presented a comprehensive study “Investment Attractiveness of Kyiv: Residential and Hotel Real Estate”, which covers market analytics, price dynamics, demand and investment returns.

Read the study at the link: https://t.me/income_property_bot.

The study analyzed projects in the capital, the yield of apartments and condos, the structure of the hotel stock, and the prospects for the development of the apart-hotels segment. Additionally, experts from LUN, DIM.RIA, and Yana Kuznetsova, co-founder and CEO of Ribas Invest, provided their comments on market trends. 

Among the theses of the study:

• In 2024, 1,412,122 m² of housing was commissioned in Kyiv, which exceeds the pre-war average annual figures (≈1.35 million m²).
• The number of apartment purchase and sale transactions in 2024 amounted to 178,439, an increase of 3.4% year-on-year.
• The average payback period for an apartment in Kyiv is 12.6 years, which corresponds to 7.9% per annum. An apartment in an income hotel pays off in 8 – 10 years (10 – 12.5% per annum).

• Rental prices in the capital increased by 25 – 35% over the year, with the highest demand for new buildings and properties near the metro (tenants are willing to pay 80 – 100% more for apartments in new buildings).
• There are about 6, 268 apartments on the rental market, which is only 0.6% of the total housing stock (1,045,083 apartments).
• The average exposure time for apartments decreased from 10 days (2023 ) to 6 days (Q1 2025).
• There are 120 hotel facilities in Kyiv with 16,013 beds. 66.6% of hotels are managed by international chains.Rental prices in the capital increased by 25 – 35% over the year, with the highest demand for new buildings and properties near the metro (tenants are willing to pay 80 – 100% more for apartments in new buildings).
• There are about 6, 268 apartments on the rental market, which is only 0.6% of the total housing stock (1,045,083 apartments).
• The average exposure time for apartments decreased from 10 days (2023 ) to 6 days (Q1 2025).
• There are 120 hotel facilities with 16,013 beds in Kyiv. 66.6% of hotels are managed by international chains. 

“We conducted this study to give the market clear guidelines — what really works in real estate today. One of the key conclusions is that apart-hotels provide a yield of 10 – 12.5% per annum with a payback period of 8 – 10 years, while classic apartments average 6.4 – 9.4% per annum with a payback period of 10 – 15 years. At the same time, apartments are a fully managed model: the investor does not search for tenants or provide services; the management company takes care of everything. It is not only profitable, but also convenient,” said Yana Kuznetsova.

“We analyzed how the hotel market has changed under the influence of wartime and saw an interesting transformation. Demand is increasingly shifting towards longer stays. In this context, apart-hotels have become a natural response to the demand of the time — a hybrid of housing and service that combines comfort for the guest with high profitability and transparent management for the investor. We see that investors are ready to invest in quality. For example, in the business segment, apartments are sold for $2020 – 2420/m², and they are in stable demand. This is an indicator of trust in the format and professional management,” emphasizes Artur Lupashko, founder of Ribas Hotels Group.

The full version of the study is available here: https://t.me/income_property_bot.

Reference.

Ribas Invest - is an investment platform for the sale of hotel income properties in Ukraine, Bali and Poland managed by the international hotel operator Ribas Hotels Group with 11 years of experience.

Ribas Hotels Group — is a Ukrainian company specializing in hotel and income property management. As of 2025, the company’s portfolio includes more than 56 hotels under management, design and construction in Ukraine, Bali, Moldova, Poland and Turkey.