Economy and Investment in Ukraine

Real estate investment in Ukraine involves examining the country's recent economic situation. Maybe 20 years ago, Ukraine was one of the unknown tourist destinations, as well as unknown destination for property investors. Hence the reform of Ukraine’s economy, particularly since 2004, after Orange revolution, has led to significant economic results. With the Ukraine union of a steadily-growing economy, rising travel potential and extremely competitive real estate in Ukraine prices, the Ukraine property market currently provides one of the best returns globally, particularly when it reaches Kyiv new construction.

Ukraine's economy has seen significant expansion since 2002 and GDP growth between 1999 and 2004 was about 50%. Growth in GDP in 2009 is forecast to be around 7%. Currently Ukraine is showing promising economic growth forecasts. An additional positive feature is the fact that foreign direct investment has risen by a massive 300% only during last 4 years. Between them, Ukraine's economic statistics augur well for future Ukraine real estate investment.

Our country is formerly part of the Soviet Union and suffered sustained neglect and economic depression under the Communist leading; complete independence came finally in 1991 with the dissolution of the USSR but Ukraine continued to struggle with the concept of true democracy and to suffer continued corruption until 2004 when Viktor Yushchenko was democratically elected.

Concerns remain that Ukraine is very susceptible to external influences, it has inequality intrinsically structured into the tax system and the changes necessary to reform the country completely are slowly to happen - this is the reason why any real estate investment made in Ukraine should be considered a long term bet as the best returns will only be made when the country has reformed sufficiently to attract sustained foreign direct investment and to be accepted internationally as a market economy and a country with solid political and economic systems free from corruption and inequality.

Those who invested into Kyiv around 18 months ago when the city was in the grip of a substantial renewing and modernization stage have seen Kyiv growth in the region of 60% already on current investments made into the real estate sector.  But local property experts admit that these levels of growth can’t be sustained long term but that the domestic and overseas intension in rental and even resale residential real estate in the popular cities and Kyiv is and will remain strong.