The most popular tourist destinations in Ukraine have always been two almost opposite routes – the Crimean Peninsula and the Carpathians, which occupy a third of the Lviv and Ivano-Frankivsk regions..
Yaroslav Zhminka. Carpathians. The village of Yablunitsa. 2007
And if the beaches and the warm Black Sea of the southern coast of Crimea have long been appreciated by vacationers not only from Ukraine, but also from many other countries, then vacation in the Carpathian Mountains is still gaining popularity.
In this regard, the demand for real estate in this region is also growing. The first peak of growth in demand and, accordingly, housing prices in the westernmost part of Ukraine fell on 2007. It was then that the first investors in the Carpathian real estate were mainly immigrants from the eastern regions of the republic, who, tired of their industrial landscapes, decided that it is best to relax against the backdrop of untouched nature in their own home. In addition, it turned out to be a very profitable investment of capital – the cost of a plot of land and a cottage in the Carpathians in the period since 2004 has grown almost 3 times. Moreover, the crisis of 2008, although it somewhat reduced the growth rate of demand and property value, was able to slow down the rate of market development only for some time..
Recently, residents of European countries, in particular Poland, Hungary and Germany, for which Western Ukraine is a nearby resort area, have also begun to show interest in real estate in the Carpathians as a good investment and a way to preserve capital. Such attention of foreign investors, of course, also contributes to the growth of real estate prices in the Carpathians..
Thus, the average cost of residential real estate in one of the most popular resort cities of Western Ukraine – Truskavets, is currently set at $ 1.1 thousand per square meter, while in 2004 it was possible to buy an apartment near the famous mineral springs for only 300 dollars per square.
The most popular places for recreation and purchase of residential real estate in the Carpathians are:
- Truskavets, Skole, Shidna, Slavskoe and Morshin located in the Lviv region;
- Yaremcha, Polyanytsya, better known as the ski resort Bukovel, Mikulichin, Yablunivsky pass, Tatarov, Vorokhta, Kosiv, Yavoriv, Sheshory and Verkhovyna in Ivano-Frankivsk region of Ukraine.
The cost per square meter of housing in these resort towns varies greatly depending on the location – preference is given to sites located at a distance from rivers, which in this region tend to overflow the banks during snow melting in the mountains, as well as with favorable views of the mountain peaks.
The peculiarity of the Carpathian real estate market is the almost complete absence of multi-storey buildings in resort areas.
This is due to both adherence to the traditions and peculiarities of the mountainous terrain, and the fact that the overwhelming majority of townspeople who come to rest prefer to live “on the ground”.
Oleg Vinnik-Shtep. Old Hut on the Mountains. Karpaty. 2008
The average price of a cottage located in a picturesque place of Slavskoe is 70 thousand dollars, not only the area of the house and interior decoration, but also the availability of convenient access roads are of great importance in determining the value. The average cost of a cottage in Vorokhta reaches 95 thousand dollars, and a cottage in the village of “Carpathian Rhapsody” in the vicinity of Ivano-Frankivsk – two-storey, wooden, with an area of 200 square meters and the presence of a land plot of 9 acres will cost the buyer only 150 thousand dollars.
The fastest growing property prices in the most popular ski resort in Ukraine – Bukovel. Recognized not only by Ukrainian, but also by European tourists, the resort attracts investors with the possibility of profitable investment and development prospects.
Crimea or Carpathians?
Comparing the attractiveness of purchasing residential real estate in the main resort regions of Ukraine, it should be noted that Crimea still remains more attractive in the eyes of investors, as it has the following advantages:
- variety of proposals on the real estate market. If in the resort villages of western Ukraine attractive offers are mainly limited to the private sector – new cottage settlements or old buildings in need of renovation, then in the Crimea you can buy an ordinary “kopeck piece”, one of the main advantages of which will be a sea view;
- no additional risk factors. As you know, Western Ukraine is an area prone to natural disasters. A cottage in the Carpathians can become a very unprofitable investment in the event of a landslide, collapse or flood, so you need to choose the location of housing carefully, having studied all the risks from various sides;
- housing on the southern coast of Crimea is much more profitable to rent. As an investment, an apartment, for example, in Yalta will pay off in a few years, since in the summer the cost of living in a “room by the sea” can reach $ 50 per day. It is easy to calculate that a three-room apartment in an attractive area of the Crimea for holidaymakers will bring in $ 150 daily during the holiday season. Renting a cottage on the Black Sea coast will cost tourists even more – up to $ 1,000 per day. The cost of renting housing in the Carpathians is still at a lower level – only about $ 20 per room and up to $ 300 for a comfortable cottage, for example, in Yaremche or Morshyn. In addition, the demand for rental housing in the Carpathians is greatly reduced in spring and autumn – during the rainy season, the highest demand for rental of cottages in the mountains falls on the New Year holidays.
As for the legal aspects of the acquisition of real estate throughout Ukraine by foreigners, the restrictions apply only to agricultural land plots that cannot be acquired by citizens of other states. Citizens of other countries can also become the owner of a house, apartment, cottage or plot of land with an existing structure (for example, a dilapidated “hut” in need of demolition). All that is needed for this is confirmation of the legality of your stay on the territory of the republic, an identification number obtained in Ukraine, as well as documents translated into Ukrainian that prove the identity of the participant in the sale and purchase transaction.
Denis Sarazhin. Carpathian huts. 2010
As you can see, at present both real estate in the Crimea and houses in the Carpathians are in rather high demand, which contributes to the growth of the cost per square meter of housing. And if while the Crimean peninsula looks somewhat more attractive in the eyes of investors, then in the coming years the situation may radically change, since Ukraine has applied to participate in the 2022 Winter Olympics.
As can be seen from the example of Sochi, which is preparing for the 2014 Olympics, if the republic wins the competition and begins full-scale preparations for the main sporting event of 2022, then the ski resorts of the Carpathians, where such a resonant international sporting event can take place, will become much more attractive for those wishing to profitably invest and purchase housing in a developing resort area. And Ukraine, as a contender to become the host of the Olympics, is obliged to prepare more than 70% of the infrastructure by 2015. The government of the republic adopted a corresponding program, so even if Ukraine’s chances of hosting the Olympics are not too great, the development of the infrastructure of resort Carpathian cities in the next 4 years is guaranteed.
In addition, the development of “green” tourism cannot but contribute to the growth in the cost of housing in the Carpathians. The popularity of recreation in rural areas, the population of which for the most part remains committed to traditions, exoticism, which for most of the townspeople is rural crafts and living in the bosom of nature – all this also increases the attractiveness of buying real estate in the beautiful corners of the Carpathian Mountains for residents of both large cities of Ukraine and and citizens of other states.