Investments in resort real estate have doubled in price: what is now offered to investors

Investments in resort real estate have significantly surged over the last two years, with the cost of a standard investment increasing from $80-100 thousand to $150-200 thousand. Partner at Apartel resorts, Yevhen Kudriavchenko, explained that this is related to the constant rise in the value of investment per meter. He noted that today he declares profitability at the level of 10-15%, but in reality, this figure is about 7%.

'The average unit in 2022-2023 was priced at around $80-100 thousand. Today, most projects on the market are becoming complicated and significantly more expensive. Large projects are being launched that raise the price per meter and the cost of each lot. Thus, the average check for 1 lot has shifted from $80-100 thousand to $150-200 thousand,' stated Kudriavchenko.

According to Apartel resorts, over 30 resort real estate projects were announced in Ukraine for 2024, but only seven to eight have actually opened. Delays in construction of 6-12 months are hindering the development of the resort real estate market, but Yevhen Kudriavchenko believes that in the future, a second wave of boom may occur if projects demonstrate good financial results.

As a result of the analysis of the state of the resort real estate market in Ukraine, a significant increase in investment costs, as well as the problem of construction delays that hinder sector development, has been noted. However, experts see potential for further growth in this sector if existing difficulties can be overcome.