Before You Became a Real Estate Investor in Kiev

Over the last five years, Ukraine, in general, and Kiev, in particular, has seen phenomenal growth and consequently a steep rise in real estate prices. Added to that, staying at a hotel is very expensive and if you have to visit Kiev often for extended periods of time, buying an apartment makes more sense than renting one. Prices for apartments in Kiev range from around USD 50,000 to more than USD one million and the average price for a nice centrally-located one-bedroom apartment in Kiev is around USD 250,000. So, what are the things you need to consider before becoming a real estate investor in Kiev?
Firstly, believe in the proverb “All that glitters is not gold.” This is especially true in the case of Kiev real estate. After the independence of Ukraine, the nouveau rich made a lot of fancy changes to their houses and other real estate property without first consulting architects and structure engineers and as a result not all roofs in Kiev are safe to live or work under. Therefore, thoroughly check the physical area of the property and the strength of the structure before putting in a bid.
Secondly, a lot of the changes to the existing buildings were made without any regard to the building codes and Ukraine law requires the approval of ZHEK (the Ukrainian Housing Department) for buying and selling any property that has undergone remodeling. If the property you have selected does not adhere to the established building codes, you will find yourself stuck in a lot of red tape.
Both of the above-mentioned steps require a thorough knowledge of Kiev building codes and the geographical area as well as being well informed of the Kiev real estate market. Therefore, hire yourself a good real estate agent. This may add to the expense of buying the property but it will be money well spent. This would also ensure that you do not become involved in any real estate fraud by buying some illegal piece of property.
Next, the legal system in Ukraine is not well structured, impartial and free of corruption, so get yourself a good lawyer who can deal with the immense amount of paperwork involved in buying property in Kiev and can expertly tackle the various deterrents of bureaucracy.
Finally, be prepared to make several short visits to Kiev or arrange for an extended stay at Kiev when you are short listing properties to buy and when the paperwork is being carried out. Provided you have hired a good real estate agent and a competent lawyer, buying real estate in Kiev should not be too cumbersome but if you plan to manage everything on your own to cut costs, be prepared for a bureaucratic nightmare.

For more information contact us at Kiev Apartments