Introduction in Ukraine

Hi Tim,

Well, you seem an experienced and enterprising American businessman - the one who is ready to take responsibility, not just declare something or say general things. And It seems you've got something to be proud of in your life. So I I'd like to share the current market situation with you.

First of all, Ukraine' s pretty big and it can't be reclaimed easily, even by a powerful country like Russia. I myself come from a city that is occupied by Russians but I've lived for 7 years in Kiev and my relatives are luckily safe in our family house out of trouble region. Really, country territory is very big compared to other European countries and in most regions life has always been peaceful.

Besides, most investments have always been made to several major cities - Kiev (capital), Odessa (major port) and Lviv (a west Ukrainian, formerly Polish and a very beautiful city). All the rest - to the lesser extent. Other cities even look more old-fashioned - they had never been in the focus of tourist attention.

That's why we speak not about investments to Ukraine in general, but investments in one of the big cities. With the population exceeding 3 million people Kiev is offering the best opportunities in Ukraine and this is the reason, why I had decided to build my career here 7 years before.

Now about real estate. The demand for it is quite high especially for 1-room apartments with low space - from 30 sq m to 60 sq m. Htere are several reasons:

- Steady demand for real estate in the capital
- Urgent need of people from other regions to have their own accommodation in Kiev
- Numerous employment opportunities attract migrants from other cities.

As a result, you'll see lots of billboards advertising new houses and blocks of flats all around Kiev, but they're not finished yet. In fact a lot of them have problems with documentation and burecracy and so dates of construction end are often shifted. In fact there are also cheaters who quote the lowest prices, but don't have all required permissions to build houses on a certain piece of land. Those investors, who trust them need to wait for a long time or even lose their money in the worst case. That's why investing in the ready apartments, even though they may look old and ugly is considered more safe and reliable investment.

So there's an opportunity for foreign investors here:

Provided they have registered their company and bought land and followed all the formalities, such construction will be perceived as trustworthy by locals. People are very interested in property ready for sale. Of course, you'd need to be very familiar with local procedures, legislation and activities. So I wish you good luck and hopefully you'll be able to do business here.

Howdy Yuri - thank you for your reply, information and advice! Yes I have been considering investing in residential real estate projects in major Ukrainian cities - most notably Odessa because of the added demand for apartments due to tourism. But my understanding is that Odessa has a strong Russian influence and therefore might be a temptation for additional Russian expansion efforts in the future. The beautiful Crimea region would have been my primary focus, but the scofflaw Russians stole the jewel before I had a chance to begin to implement plans. I do realize that the Ukraine is a large country, and agree that it would be very difficult for Russia to further aggressions to Western regions of your country, as America and the EU have recently been increasing their resolve in preventing such a tragedy. I was thinking that until the border region stabilizes and improves... perhaps I would seek projects in the ski resorts areas of the Carpathian Mountains - very scenic with substantial tourist appeal. Naturally Kiev is the largest market to consider, but there is already much investor attention to that city and I would prefer to help create jobs for Ukrainians in lesser developed areas, where the jobs might help invigorate a local economy rather than be just another real estate project. Once again, thank you for your reply - perhaps we will meet some day?!

How do you do, Tim!

You're welcome, it seems you really have an open mind and aren't afraid of diffculties.
Yes, some people are afraid about Odessa, but not I - it is clear that people there don't want Russian troops and fighting again. We'll see how the 1-2 May holidays will go, but I think government in Ukraine is much stronger than a year ago, Russia won't be able to sow dissent here any more.

As for Crimea, it is really pointless to invest something there. Your idea about skiing in Carpathian mountains is good, but you should be aware that a lot of similar projects already do exist, it seems easier to buy an existing business rather than start from scratch.

As for meeting in real life, you're definitely an interesting person to discuss life and business with, so if you ever plan a visit to Kiev, feel free to ask about local life and I'd spare some time for an interesting live conversation with you.

Hi Tim,

Welcome to Expat.com!

A new topic has been created as from your post on the Ukraine forum.