When it comes to business, Ukraine is a bundle of opportunities. One of the hidden gems is the Real Estate business in Ukraine. There has never been better a time to start investing in Real Estate than now. The Ukrainian economy has since stabilised and as a result real estate prices have stabilised. Also, the total cost of buying a property in Ukraine is low but with high gross yields. Therefore there has never been a better business in Ukraine than Real estate.
Much has changed in Ukraine since its conflict with Russia. Corruption has gone down, less dirty politicians and the economy has improved. These positive changes have created an environment suitable for investments. Diasporas in the EU have started using their savings to invest back at home. The Gross yields in the Real estate business have gotten high in some cities like Kiev which has the potential to bring in foreign investments. Therefore, with the reforms that have taken place in Ukraine there has since been a lucrative opportunity in the real estate business.
There is quite a potential for making profit in the Real estate industry in Ukraine. If we would compare Ukraine’s capital Kiev (in terms of price and population) to other capitals in the EU like Sofia and Bucharest, Kiev has a big population and its real estate pricing is relatively less. If Kiev can get to the social levels of these capitals its real estate value could rise by 50%. Therefore this comparison alone is quite promising for Ukraine’s Real estate.
There is a good improvement that is happening in the Ukrainian economy. This will surely bring back optimism and trust in investing in Ukraine. It goes without mentioning that locals have probably been sitting on their savings. This improvement is likely to make these people feel comfortable enough to start looking for ways to use their dollars and Euros. Real estate is the most likely venture that they will start to put their money to work into.
The buying and selling of real estate in Ukraine is dome in the local currency. Lest that scares you, the pricing is generally indexed to the dollar, so this will provide some cushion to the rate of the UAH. Therefore, even if inflation strikes your investment is going to be safe.
Gross yields in the Real estate business range between 7-9%. That is to say, they are relatively high. This has the potential of attracting investment even from foreigners. As the gross yields are relatively high, Europeans are most likely to start having interest. It is even likely that they have already started showing interest and investing. The higher the investments the business gets the more lucrative the Real estate business gets.
There is a huge population of Ukrainians that has migrated to the EU over the past years. As they accumulate savings it is only reasonable that they invest back home since there are higher yields as compared to the EU. This will drive the prices of real estate back in Ukraine up, thus making Ukrainian Real estate business a lucrative business and more lucrative as time goes.
With some dirty deals still going rampant in Ukraine, a lot of money is laundered in the Real estate business. Real estate is considered an attractive class assert, therefore, it has become an easy way of laundering money without being suspected. There are lots of dirty funds that are recycled in the Real estate business. Therefore Ukrainian Real estate business has seen a lot of investments as of late making it possible for Real estate value to go up much higher.
The Ukrainian culture cares much about Real estate. The people’s culture matters and Ukrainian history shows that Ukrainians care more about real estate. Culture is important when considering a business venture as people are influenced by their culture. Therefore if you are going to invest in Ukraine it is wise to trust the Ukrainian history of real estate speculation.
With the falling Hryvnia interest rates, bank deposits are becoming decreasingly lucrative. So if bank deposits are becoming less lucrative people have to look for alternative ways to invest their money. Investing in the stock market is not ideal, the stock market is illiquid. To invest overseas requires a lot of capital. What is then left is to invest in real estate. There is a high probability that people are going to flock into real estate in Ukraine, making it lucrative.
The positive reforms that have taken place in Ukraine have significantly benefitted the Ukrainian Real estate business. A lot of investment is likely to be plunged into the Real estate business. Also with no other possible lucrative investments options, people are likely going to flock to real estate. Lastly, there is a high gross yield that is to be realised in the Real estate business. In as much as these factors are considered real estate is the best business in Ukraine.
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