Back in February I spent time in Ukraine looking at real estate. I met with Alex, my buyer’s agent, who helps investors buy, renovate, and rent out high yielding residential properties. I also met with John, who runs a deep value real estate fund in Kyiv. He showed me a downtown penthouse office which he had bought and renovated for a total of $1250 per m2 and which was yielding 19%. My expectations for the office market in Kyiv had definitely not been this high.
Following this video, some followers expressed skepticism about investing in the office space market, seeing the developments around the world. To be fair, it’s a very valid concern.
I wanted to dig deeper into the office market in Kyiv as such yields and potential capital gains are mouthwatering.
In this video which was filmed later in February, I asked John to elaborate on the office market in Kyiv, and I then headed out to look at his competitors. I took a cab, and went to see various office spaces in the center and in the outskirts of Kyiv to gain a better understanding of the fund’s strategy and positioning.
It’s a market that is worth exploring as its combination of high yields, potential for capital gains, illiquidity, and lack of financing make for a truly unique office market with inefficiencies that can be exploited by astute investors.
You can watch the video of the office market in Kyiv here.
Make sure to sign up to John’s free Kyiv real estate market newsletter. It’s one of the most insightful sources of information on the Ukrainian real estate market.
To find other interesting real estate markets, go to the bottom of my page on International Real Estate Services and browse through the various articles (here)
To a World of Opportunities,
The Wandering Investor
If you want to discuss your internationalization and diversification plans, book a consulting session* or send me an email.
*a consulting session is a discussion about your portfolio and objectives. It does not constitute legal, financial, tax or investment advice.