How Much Does Ukraine Earn From Football Fans And Why Is There Not Enough Real Estate For Tourists?
Ukraine was a host of Euro-2012, a major international football event, which brought internal investments of around 5 billion dollars to build infrastructural objects. There were also other football events hosted by Ukraine in the years after. But Ukraine is also a general tourist destination, which annually welcomes approximately 14 million tourists (before Covid-19 corrections). Some numbers about tourist flow are shown in the table below so you can become acquainted with the numbers yourself (according to official statistics):
Number of tourists, million
% of GNP
Income per 1 tourist, in US dollars
Although statistic shows pretty humble incomes per 1 tourist, market experts (including us) believe that real numbers are up to 10 times higher – it is hard to precisely calculate the sums since much money is received by a “private business sector”, which isn’t willing to expose the incomes received from tourists in cash. That, surely, includes incomes from the real estate rental business, which is still in the shadow in Ukraine.
Real estate in Ukraine
Only a tiny fraction of international and internal tourists book hotels – it is always far cheaper to rent some private house or apartment for a several-day vacation. Especially given that hotels raise the cost of living in their rooms by 100%-500% when a major tourist inflow is expected, which’s connected to some international event, would it be football or anything other.
Thus, the market of Ukraine still experiences a large shortage of privately owned real estate objects to cover the tourist needs. Although around 4.5-5 billion dollars are the value of newly commissioned objects of real estate construction in Ukraine nearly every year, there is still a huge void to fill in (as you can see yourself that tourists generate only a small share of GDP). In 2021, the construction of new real estate objects grew by 20% compared to 2020 and it is expected that the numbers for 2022 will be approximately at the level of +10% (2022/2021).
The lion’s share of the commissioned objects is made of apartments in many-story buildings. And this niche is one of the most growing in price and profitability in Ukraine in 2020 and 2021. We have explicitly shown in our previous articles that the recoupment term for an average rented apartment in Ukraine’s capital Kyiv is from 7 to 13 years, which is far better than in the US and most of “old” Europe.
Real estate investing company opportunities
Our investment company is a market expert. We have been working on the local Ukrainian market for over a decade. Some of our management and leading brokers have 15+ years of hands-on experience, successfully concluding thousands of deals, helping hundreds of clients from all over the world to invest in attractive handpicked objects with the best profitability and ROI numbers.
So if you’re currently looking for a promising and actively growing market, turning your head away from stagnating “standard” and “old” markets, then Ukraine is exactly what you need in 2021 and 2022.
You can find on our website several attractive objects for investments, which bring profit up to 15% ROI annually, with the prices starting with just $85,000. Working with us, you receive a possibility to pay for your investment objects in installments and you always receive comprehensive and thorough advice & support at all stages of every deal.
Conclusion on owning rental property in Ukraine
In a Covid-struck world, investment opportunities significantly shrank and only a handful of countries remain attractive from this point of view. Ukraine keeps receiving tourists from over a hundred countries in the world. The countries-leaders in the provision of tourists are Moldova, Belarus, Hungary, Poland, Romania, Slovakia, Israel, Turkey, Germany, and the US. Since they all need to live somewhere during their travels and most hotels are too unsatisfactory in the price/service ratio, you can earn on letting the apartments and detached houses for these people, as well as for regular long-term hirers.
So if you’re interested in accumulating wealth with low risk, increasing your capital at least threefold in a 25-30-year perspective to leave a lavish fortune to your children and grandchildren, then paying attention to Ukraine is a wise decision. Working with such a trustworthy real estate agency as ours, you’re legally protected and can enjoy your life, leaving the mundane chores or running your real estate portfolio to our management company.
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More about DGY
DGY is a real estate investment and property management company. Our experts have an impressive experience in turning businessmen into smart real estate investors. We collect limitless opportunities throughout the world’s best real estate markets and help our clients implement the best deals. We take care of all due diligence and customize documentation while your income grows. We also provide you with property management services so you can forget about the tiresome maintenance of several objects and entrust this process to professionals.
Investment advice and recommendations
DGY is an investment company that takes care of every client and helps them become successful investors. With the help of an investment experience and a well-thought plan, we will help you examine the market, choose a strategy specifically for you or your business, and calculate future costs to start making money with real estate investment.
In order to invest in real estate, you should consider how you will run your management in Ukraine. DGY will help you eliminate all possible pitfalls at an early stage as a personal project manager will be assigned to your case. They will assist you in choosing the project according to all required objectives.
DGY Investments takes care not only of purchasing property but also renovating an existing one. With the help of a thorough plan and estimating, we will thoroughly prepare a property for sale. Our professionals evaluate an investment property and create a strategy that includes the costs for renovation, possible taxes, fluctuations on the market, etc. Therefore, our clients are able to resell the renovated properties in Ukraine with more than 15-20% profit from the initial price.
Before our clients decide to deal with real estate investing, they consult with our experts concerning details such as the necessary documents needed to purchase a property and successfully run all the processes connected to it.
Therefore, if you are eager to invest in Ukraine, it’s essential to have all the paperwork done correctly, and that’s the moment when our team of experts takes care of this step. DGY Investments helps investors buy real estate property, manage the paperwork, start preparing relevant documents for purchasing realty in Ukraine, and close the deal successfully.
Real estate investment opportunities in Ukraine
When an investor decides to invest in real estate in Ukraine, the most affordable way to attain stable passive income is through buying residential real estate. Investors can expect to receive a regular monthly payment from their tenants at a fixed monthly amount, unaffected by inflation or other unforeseen circumstances. The amount of rental income will vary depending on the size, type of property and location. For example, buying an apartment in Ukraine’s capital Kyiv is beneficial to investors due to offering a large working population, central location and affordable prices. Hence, the minimum price of renting a decent one-bedroom apartment in Shevchenkivskyi District will be around $1000 per month in 2021, followed by Pecherskyi District with a cost of $850 per month. Besides, investing in real estate in Ukraine annually brings clever investors up to 15% of yield, attracting many business people every year.
Properties for investments in Ukraine
Ukraine has a giant sector for real estate investing. Businessmen who come there all over the world often choose between investing in residential and commercial properties. The main advantage of buying property in Ukraine is the affordability of prices on the houses and apartments. For instance, if you invest in real estate in a historical district, a luxurious apartment will cost you around $85k only.
How to invest in Ukrainian Real Estate
In order to invest in Ukrainian real estate, you should take into account a list of crucial factors. The first one is to choose what kind of realty you are going to invest in: residential or commercial. It is vital as it should comply with Ukrainian real estate law. The second tip is to identify the purpose of purchase in order to make a strategy for the property. For instance, you may purchase the property for your own use or buy it for lease. The next step is to calculate the taxes and what kinds of taxes are payable during the purchase, owning, or selling. Also, to invest in real estate properly, you should keep in mind currency control rules in Ukraine to sell a property and get a higher profit.