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Property Investment in the Ukraine 2008

Sitting at the crossroads of east and west, emerging into a new era of true democracy with remarkable economic success, the Ukraine is attracting considerable interest from overseas investors seeking long term rewards. With the added investment and interest that will come with the Euro 2012 football championships, the country looks set to continue along the path of economic growth with a promising future for property investment.

Tourism figures have steadily risen over recent years with Ukraine's official statistical agency, the Ministry of Statistics of Ukraine, reporting 18.9 million tourists in 2006, representing a significant 8% increase from 2005's 17.6 million.

Ukraine's economic growth has been strong since 2000. Total gross domestic product (GDP) growth for 2007 is expected to be 6.7%, according to World Bank projections, who have forecast 5.5% growth for 2008. Economic growth advanced by 7% in 2006, and during the period 1999 to 2004, GDP grew by more than 50%. Real disposable income experienced a rise of 16.5% in 2006, according to the World Bank, the increase of which is expected to create strong demand in both the domestic property market as well as the market for second homes on the coast.

According to Knight Frank, the Ukraine is one of the most promising property markets in the world, with some property values rising by a remarkable 600% over the past three years since the 'velvet revolution' brought true democracy to the country (Source: The Independent).

"According to Knight Frank, the Ukraine is one of the most promising property markets in the world."

The Ukraine's new apartment market has seen a rise in activity during the last year, with price increases of approximately 5% in Q2 of 2007, as attention has moved away from the secondary property market. Kiev experienced property price rises of 70% during 2006, following a 65% increase in 2005, according to Kiev real estate agents 'In Real'.

While capital growth potential is clear, rental yields also hold impressive records. Average rental yields in the Ukraine are as high as 8.8%, with yields in Kiev ranging from 6.9% to 10.2% (Source: Global Property Guide).

In summary, the Ukraine has been thriving since the velvet revolution, creating a dynamic economy, an affluent population and a growing tourist industry - all of which are attracting huge investment from overseas. And with landmark events such as Euro 2012 and possible EU membership on the horizon, the Ukraine presents a serious proposition for property investment.