In February 2022, Russia launched a military operation on the soil of Ukraine. The fighting began with great fanfare and the assumption that a power like Russia would conquer Kiev within a few days. However, the Ukrainian people showed determination and fortitude that amazed the world. As of this writing, fighting is still going on in the eastern border region of Ukraine.
War often leads to displacement and mass migration of people, both within the country and across borders. This could create a sudden increase in demand for housing in safer areas and a decrease in demand in war-torn areas. Such population movements may cause significant changes in property prices and rental rates.
An example of this can be seen in eastern Ukraine and especially in the city of Uzhhorod. The city is located in the border triangle with Slovakia and Hungary, where an increase of over 50% was recorded in the number of registered residents since the outbreak of the war.
Crises as an opportunity
War as a crisis does create economic risks for precipitation, among other things due to the uncertainty. However, history shows that precisely times of crisis may become a rare opportunity, for example:
- USA 2008 – The real estate crisis started with the bursting of the real estate bubble in the mortgage market and affected the world economy. -After the crisis there were increases and the market stabilized.
- Europe (2008-2012) – The financial crisis real estate prices in countries like Spain and Greece fell sharply. Investors who invested in real estate at low prices during the crisis saw considerable profits when the market recovered and real estate prices rose again.
- Corona 2020 - Real estate prices, especially in the hotel industry, faced severe uncertainty due to the outbreak of the corona virus, which led to a significant drop in real estate prices and rents. However, smart investors who took advantage of the discounted prices during this period experienced substantial profits after the market recovered and returned to normal.
Relying on insights from the above crises, we learn that the real estate market reacts to crises and proves its ability to recover and register notable increases at their end.
It is important to remember that before any investment you must assess the risks, examine the market carefully and consult with experts before making investment decisions in real estate especially during these periods.
Take advantage of the crisis opportunities and purchase real estate in Ukraine according to a supervised mechanism
In order to understand whether this is the time to buy real estate in Ukraine and what is happening today in the real estate market
We contacted the owners of G-International company Gal Kolani, and attorney Gal Harel.
According to them, "Experts in the field say that times of crisis are a golden opportunity to purchase real estate at good prices and enjoy a high return potential in the future. Already today, many of our clients see the war in Ukraine as an extraordinary opportunity that allows them to take advantage of the period to purchase real estate at good prices, and to enjoy a high return potential in the future. Similar to the reaction of the markets after the corona crisis, after the declines and the uncertainty, the market went back up and stabilized, and those who invested at the right time in the right place profited."
"Therefore, after the current crisis, we expect that it will come to an end and everyone will want to take part and get their hands on a property in Ukraine and enjoy significant increases. By analyzing the current situation and carefully examining the advantages of areas with potential for growth and development, investors can maximize their investment and generate significantly high returns Even in times of crisis."
46,000$ which will become 75,000$
According to the analysis of the experts of the OLX Real Estates company specializing in international real estate, it can already be stated that the situation in Ukraine has created extraordinary real estate opportunities. An excellent example of this is the city of Uzhhorod, a picturesque city at the foot of the Carpathian Mountains, located at a huge distance of 1,600 km from the conflict zones, where a quiet and secure routine life is conducted. due to Its location in the border triangle with Hungary and Slovakia, Uzhhorod is an ultimate solution for citizens looking for peace and security.
In the last year and a half, the city's population jumped and registered an increase of over 50% in the number of registered residents and hundreds of thousands more immigrants looking for permanent residences in the city. As a result, demand for apartments soared and prices increased by more than 52% and the upward trend continues.
Today there is an opportunity to purchase properties for about 40% less than the market price. Kolani and Harel add that "many of our clients purchased apartments in Uzhhorod and are already enjoying the continued gains from their investment in Ukraine during wartime in a smart, controlled and supervised manner with minimal risk."
Another and significant factor that must be taken into account in the whole set of considerations before investing in real estate in Ukraine, and which can affect the real estate market in the region, is receiving Significant financial aid that will enter the country from Europe, the USA as well as large private funds.
Ukraine's entry into the European Union and NATO will provide stability and economic security for the country and the real estate market. The entry of Ukraine can expose investors from many countries in the world to understand the significant potential that exists in the country, in light of the significant price gap that exists between investing in Ukraine and investing in other European countries.
In conclusion, the prevailing instability in Ukraine is a unique opportunity for investors to purchase real estate at low prices and take advantage of the potential for a significant increase in value in the future. By understanding the current dynamics, advantages and disadvantages of the market, recognizing the potential for economic stability and considering Ukraine's entry into NATO and the European Union. Thus investors can make informed decisions that suit their investment goals and maximize their returns. Because with the end of the war the profit potential is particularly large.
- The information on this page does not constitute advice, recommendation or opinion regarding the feasibility of investing in property of any kind and type, nor does it constitute an offer to purchase such properties.
- What is stated on this page should not be seen as a commitment by any of those mentioned in it to obtain any return.
