Ukraine Property Investment For Sale
"An interesting market which needs to make more structural reforms to move forward."
Ukraine has a fascinating mixture of spectacular landscapes, unique architecture, a rich and colourful history and one of the most beautiful cities in Europe – Kiev. Along with the Carpathian and Crimea mountain ranges with their skiing and hiking centres and Lviv, the medieval town that acts as the main cultural centre of the country, Ukraine has long been a popular tourist spot – especially with its neighbours.
As the second most important economic component of the former Soviet Union (behind Russia), Ukraine provided one-fourth of all soviet agriculture and the equipment and raw material for industrial and mining sites across the USSR. However after independence in 1991, production fell and the country become largely dependent on Russia for its fuel needs although it holds a unique strategic position within Europe.
Ukraine like many of the other former Soviet counties saw rapid growth in the lead up the international credit crisis, fuelled by high global prices for steel, which is the Ukraine’s largest export, and high domestic consumption. Alongside this general surge in wealth came a large growth in property prices, based on massive speculation often by locals trying to safeguard their newfound wealth. Real estate prices increased by some 300% in a window of just 4 years. However when the international financial crisis hit, Ukraine was one of the worst performers worldwide and saw a GDP contraction of 15% in just one year, massive currency devaluation and the collapse of its banking system. It is no surprise therefore that at the same time the bottom fell out of the housing market and has yet to make a recovery.