Speaker A
Every month in the Lviv suburbs, there are 5,000 search queries for house rentals, but there aren't even a thousand offers available.
Explore the booming suburban house rental market near Lviv, investment returns, and lifestyle benefits with Oleks Pishchak from RITM.
Key Takeaways
- High demand and low supply create a strong rental market for suburban houses near Lviv.
- Suburban house investments offer higher rental yields and capital growth compared to city apartments.
- Family lifestyle and community factors drive the suburban living trend.
- Investors benefit from guaranteed price increases and flexible exit options.
- The suburban real estate market near Lviv is poised for continued growth.
What the video covers
- There is a high demand for house rentals in the Lviv suburbs with 5,000 monthly search queries but fewer than 1,000 offers available.
- Investing $100,000 in a 125 sqm house yields a stable 8-9% annual rental return, with potential 37% property value growth over two years.
- Suburban real estate is growing as a trend, with up to 20% of housing stock expected to be suburban in the next decade.
- Rental yields for suburban houses (8-12%) are significantly higher than for apartments in Lviv (4-6%).
- The lifestyle appeal includes peace, nature, family-oriented community, autonomous utilities, and convenience near urban amenities.
- The Galician Residence project in Sokilnyky offers premium detached houses with guaranteed price appreciation and rental income.
- Investors act as co-investors with planned price increases and the option to exit early if a buyer or renter is found.
- The market prioritizes sales of developer-owned houses but investor properties also sell quickly due to high demand.
- The suburban living trend in Lviv is expected to grow, following patterns seen in Kyiv and Western Europe.
- The video promotes a promo code 'RHYTHM' for offers and highlights the unique suburban community lifestyle.
Chapters
- 00:00Market Demand and Rental Prices in Lviv Suburbs
- 05:09Community and Lifestyle Benefits of Suburban Living
- 08:54Sales and Investment Liquidity in Suburban Projects
- 13:50Investment Details and Profitability Explained
- 18:33Investor Rights, Exit Options, and Sales Process
- 26:00Future Trends and Market Growth Outlook
- 38:30Promotions and Unique Selling Points of Projects
- 47:49Urbanization vs. Re-urbanization in Housing Development
Full Transcript — Download SRT & Markdown
Speaker A
What are the biggest downsides to living in a house outside the city? Rent is currently $1,000 a month, because I walked in and, honestly, I teared up. I'm finally home.
Speaker A
You see, the market is empty. That's why we actually have a waiting list for rentals. A $100,000 investment in 125 square meters brings, well, it's confirmed and stable, 8-9% annually just from rent. 2 years. 37,000 growth on a
Speaker A
hundred. 37% in two years. Yes. This is the first cafe in a cottage town in Lviv.
Speaker A
We are ready to guarantee nine percent annually. For how long? Well, permanently. Use the promo code RHYTHM. What can we promise? And with the promo code...
Speaker A
If we talk about market volume regarding rentals, how many households is the Lviv region ready to consume for rent, in your opinion?
Speaker A
We monitor demand and supply. We see that every month in the Lviv suburbs, there are 5,000 search queries for house rentals, but there aren't even a thousand offers available there.
Speaker A
So, you do the math. Uh-huh. Meaning we occupy a small... even with all these parameters, even if we have 1,000 houses, we will still be a small operator in the overall real estate market. So 10,000 households are consumed by Lviv and the Lviv region.
Speaker A
Yes, well, look, it's calculated very simply. It will be the city of Lviv, 1,200... 10% want to live outside the city. That's 120,000 divided by three.
Speaker A
This is 40,000. 40,000 houses, and the trend is developing. This share will grow. It is growing. Uh-huh.
Speaker A
And it's... well, you need to calculate it properly based on those who buy real estate, right? But globally, if we look at the big picture, up to 20% of the entire housing stock over the next 10 years will be suburban real estate, and
Speaker A
it’s just getting started. Even if residential complexes are already built up and full, the demand is quite high.
Speaker A
Yes, so explain to the viewers why you divided 120 by three. Because, because on average, three people live in one apartment or one house.
Speaker A
If we are talking about the maximum high rental price, what is considered normal for suburban real estate today in terms of money? Well, it's considered that if a house brings in 10-12% annually, that's fantastic for rental income. Yes. And for residential
Speaker A
real estate rentals, we have a few houses that bring in 10% annually. We just entered very well at the start, at the excavation stage, bought at a discount at the minimum price, paying the full amount immediately. And they end up getting 10 percent per annum.
Speaker A
Yes, everyone gets a steady 8-9 percent from rent, but for comparison, an apartment in a residential area of Lviv brings in only 4-6 percent. Well, because the rental price is very high, and there are so many rental offers
Speaker A
there. Accordingly, well, there isn't the same shortage as there is with houses. You know, when I was moving in, the residents said that you feel like, you know, someone called it a suburban vibe, someone else compared it to TV shows,
Speaker A
you know. Oh, it’s that picture of the American dream. Single-story America. And, well, we see how this trend is implemented in the States and other developed markets. How do you think, 30 or 40 years from now, what percentage of the population will live
Speaker A
outside the city? We are oriented toward the European market. And there, while in Lviv the number of people wanting to move out of the city is currently 10-12%, in Kyiv it’s every third person. In every third person.
Speaker A
And in Europe, it’s 40-50%. And Lviv, well, and Western Ukraine, it catches the trends from the West. Therefore, this trend will definitely only grow, and there will be more and more such people.
Speaker A
What do you think this situation is related to? It’s usually related to children being born. Uh-huh.
Speaker A
And people want, uh, to live in peace, for their child to live, uh, in nature, to have this town infrastructure where you don't have to—well, it’s incomparable to a residential complex, and. And then the comfort itself, that it’s easy to park there, autonomous
Speaker A
utilities are mega-important now. The community itself, who the child interacts with. A mass of factors.
Speaker A
Uh-huh. Cool. Each of your next projects is, well, somehow more interesting, so to speak. This project today, Lviv Bridge—Lviv, Lviv Dzhertany, yes, it looks cool, hard to pronounce.
Speaker A
What’s special about it? This is, uh, a cottage town called Galician Residence. What's special, first of all, of course, is the location, it's Sokilnyky, it’s 3 minutes to the Victoria Gardens shopping center, all detached houses with, uh, more expensive facades, with
Speaker A
layouts that are, uh, well, a level higher. Well, accordingly, you have to pay for that. And if we talk about it from an investment point of view, because when we were arranging the meeting, you mentioned a very cool
Speaker A
figure in terms of profitability, how much it could be for our viewers and how one can earn money with you there today.
Speaker A
We have a very popular investment in "cost price." Well, that's kind of a working title. Uh, and in Sokilnyky.
Speaker A
Well, basically, it's best to get into this investment at the start of the cottage town project, because the price is lowest, and as it grows, the price goes up. We're in the presale, there are 41 houses, and nine are already
Speaker A
taken. The price is currently $1,500 per square meter, even though the surrounding area is $1,800 to $1,900.
Speaker A
Uh-huh. A guaranteed $300 increase per square meter. Well, that’s the market today, right?
Speaker A
Yes, that’s just how the market is now. And considering all the advantages we have that aren't in the market, $300 is just the minimum forecast.
Speaker A
If we're talking about the money, you mentioned investing 100 over a certain time and earning this much.
Speaker A
An investment of $100,000 for 125 square meters. We pass on the entire appreciation, all those $300 that add up on 125 square meters, we give it all to the investor.
Speaker A
Uh-huh. So, it's about return on capital and time. Two years, $37,000 growth on 100.
Speaker A
37% over 2 years. Is that written in the contract, and is it tied to the currency, you know? Let me explain. The contract states that we will have planned price increases up to a certain value. And we will definitely
Speaker A
pay the investor when we sell, at the planned price for that moment. And what if not?
Speaker A
If not, we are in the same boat as the investor, because until we sell this house, its market value today is, say, 220,000 or 230,000.
Speaker A
And the person buys for... the down payment. Yes, that's the investor. They aren't just buying, they are investing.
Speaker A
They are a co-investor. Right, they are a co-investor. And until we sell it, we don't make anything either. Uh-huh.
Speaker A
Okay. But two years is a very long period. Can they exit earlier? Over two years, we will have three price increases of $100 each.
Speaker A
Uh-huh. And they can exit at any moment. Actually, it happens when there's an end user or someone looking to rent who says, "I want this house." We contact the investor. Time has passed, the price is such: are we selling or not?
Speaker A
Uh-huh. Okay. Let's look at this. If I invest today and want to sell this house myself, can I sell it faster?
Speaker A
No, only we handle the sales. Only you? Uh-huh. What's the guarantee that you'll sell my house or other investors' houses instead of your own remaining ones?
Speaker A
Our houses are prioritized, of course, but they sell out quite quickly. Uh-huh. In Derevach, in the first phase, we haven't had a single house on our books for a year now.
Speaker A
And right now, all the investor properties are sold out. Cool. Could this period be shorter than two years?
Speaker A
It could. Well, but the percentage will be more or less the same, because there’s another price hike in six months.
Speaker A
But don't you think the market will snap up this product today? If you say it's already 300-400 [dollars] more expensive in the area, don't you think this price increase could happen faster due to, well, demand in this district?
Speaker A
It's more important for us to maintain high demand than
Speaker A
Okay. And speaking of rentals, if I invest to generate passive income, how much should I put in, and what will I get back?
Speaker A
The entry point is from 350,000. But we also talked about rentals, that if in our segment—the house we looked at— there is demand but low supply, then renting a luxury-business class house is basically impossible. I have several friends who were looking for high-class
Speaker A
housing in Lviv for a large family. Well, because they are used to living that way in another city. It simply doesn't exist.
Speaker A
So what would the figure be there? It would also be about 9, 10, 11 percent annually. Houses for 3-4 thousand [dollars] of luxury class, they just don't exist.
Speaker A
Uh-huh. Okay. And all these houses will be in the same class, right? Yes, yes. All 41 of them. Yes. Uh-huh.
Speaker A
What are the downsides of that location ? The airport is nearby. Uh-huh. It will be audible sometimes.
Speaker A
Yeah, I understand. Well, it's a bit to the side, not directly over the landing strip, but those who love Sokilnyky, and there are many such people in Lviv, they accept this downside. Just like in Briukhovychi, they live right on an
Speaker A
active railway, with crossings everywhere, and trains run around the clock. Exactly. There is that nuance with the airport, but it’s the proximity to the city.
Speaker A
Look, if you compare your model with recreational real estate, here you have a management company, you take on the hassle. And this story works very well for us in the Carpathians, and honestly , the numbers are really great. No,
Speaker A
there are certainly 6 percent [returns] , but there are also 12. And there is zero. Look, there is zero.
Speaker A
Look, there is zero. That's true, they didn't guess the format, didn't launch it right, messed up, but there are also 10-12 s, and even cases with 15, yes, in dollars, net of taxes. It depends on the property and the starting figure,
Speaker A
especially when comparing your product to what's currently on the market. Right, and I hope recreational real estate owners don't take offense, but I'll start.
Speaker A
Go ahead. Uh, first, we’ll cut this out later. First, there is no seasonality here.
Speaker A
Uh-huh. And we sign people up for two-year leases. And when we talk about rentals, we don't have to fight for leads, uh, or struggle to get 40%or 50% occupancy; this is 100%occupancy, which is any hotelier’s dream. Second, the
Speaker A
management company doesn't cost an insane amount of money. Uh-huh. Like it does in recreation, right?
Speaker A
The processes are simpler, right? Absolutely. We take a 10%commission on rent from the second year onwards by raising the price, because the renovation warranty is one year, just in case.
Speaker A
Right. The third point is constant demand and options; it’s liquid. The house is quite easy to sell, especially when it comes fully furnished. Uh, well , I know we have clients who bought recreational property from us, and they
Speaker A
got stuck in certain projects, while with us, they turned it over much, well, the liquidity is much higher because the demand for residential is more stable. Of course, there aren't the same multiples here, because we have cases where people earned 30-40%
Speaker A
per annum in foreign currency, right? Well, because there was a great pre-sale, a great product. There’s less capitalization here, the market is more sluggish, but it's also more predictable. Then there's no concept of depreciation.
Speaker A
What exists in residential, yes, when, yeah. What exists in recreation, when after so many years they bill you for ...
Speaker A
But look, there is serious depreciation in residential. The washing machine by year six to eight, you're already thinking about faucets, walls, furniture.
Speaker A
That’s why, at peak price, we suggest selling the house in our model. Uh-huh. 5-6 years.
Speaker A
Well, ultimately, we suggest the same for recreation, and many companies have smart funds, you know. Well, that point is a bit weak: " Okay, a stretch.
Speaker A
Okay, a stretch." Not a stretch for... I have many cases over 20 years where people bought apartments a long time ago, missed that moment because they got attached, and now they're replacing kitchens, furniture, faucets. And that is a huge investment.
Speaker A
Well, okay, but there's no such thing as reconstruction. Well, no, I agree with you there.
Speaker A
But in a hotel, it exists? Yeah, but in a hotel, let's be honest, if you nailed the location and the concept, you can sell not for $ 50 a day, but for $ 80 due to high demand.
Speaker A
You can host various events, seminars, or what are they called, festivals— anything to keep it occupied. Uh-huh.
Speaker A
That’s why there's no ceiling there, whereas here, the rent price ceiling is defined by the median average wage. Yes , there is a market. In recreation, you can often break that ceiling with a truly high-quality product.
Speaker A
And if we're talking about construction technology, this is capital construction, while a lot of recreational stuff uses frame or panel technology. Yes. And the building itself depreciates there, 100%. If we're talking about properties built using a frame model, they require more
Speaker A
attention. You're right. Look, what you're saying is absolutely correct, but both have a right to exist. I always recommend having a residential property, a commercial one, and a recreational one.
Speaker A
Last argument. Go ahead. We work with the "eOselya" program. Aha. That’s a strong point, right?
Speaker A
See, you can get registered here, move in, uh, resell it through eOselya, or any mortgage, whatever you want.
Speaker A
Nice, well done. We don't lobby for one option or the other. As a company, we have everything and always compare what is best for a specific investor. If they are looking for a short-term play, it's often much more interesting to get
Speaker A
into a recreational project at the foundation stage. If a person is playing the long game, then choosing a property with clear, predictable demand in the Lviv region today might be more appropriate.
Speaker A
By the way, many people ask us if they can live there themselves. In a third of our contracts, it is written that we warn tenants that the owners may move in with a month's notice. Yes.
Speaker A
It's up to you to choose. Thanks to the fact that you watch our channel, you are more informed than other viewers or investors. So if you have any questions , leave your contact info in the form below. We will answer them all. And
Speaker A
we're moving on. While everyone is home . Yes. Hello. Hello. We're here to see you.
Speaker A
Why did you choose to live outside the city? Because it's quiet here, comfortable, fresh air, less noise, and quiet neighbors. I mean, it's not an apartment where chaotic life events are happening behind the wall. You can actually sleep here. In the morning,
Speaker A
the sun rises right into the bedroom windows. In the evening, on the terrace , we watch the sunset as it floods our house with its beautiful light. Uh, there is a pool here, a playground, and a lake where you can take a walk, go
Speaker A
running, or ride bikes. I mean, it has all the perks of that American dream, you know, but it's really a Ukrainian dream here, where you can tinker around in your own yard and plant something.
Speaker A
There is a fireplace here that you can light up. You can have a barbecue here.
Speaker A
Meaning you can invite friends and celebrate something on your own terrace . It’s nothing but pluses here. So, so that’s how it is.
Speaker A
Did you buy this house or are you renting it? We are renting the house at the moment, but we are thinking about buying it, because we’ve been here for a year and it has passed a lot of test drives.
Speaker A
Including those times when there were power issues, we always had it here because it was provided for. I mean, we didn't have any periods where we didn't have electricity. In the summer, again, there are all the conditions for
Speaker A
relaxing, without even having to go anywhere for a vacation. We relax while at home, and we work while at home. I mean, everything is just really great.
Speaker A
We celebrate while at home. It's very cool here. And I also want to say, we sometimes have guests here; a herd of deer walks around. I mean, the connection to nature is truly 100%, and the changing of the seasons, the
Speaker A
blossoms, and when it snows, it's all wonderful and you can go for a walk, because you just step outside and that's it—you have fresh air and nature.
Speaker A
Cool. When you were looking for a house to rent, how easy was it to find, and what was the trigger, let's say, that made you decide to move from Lviv out here to the countryside? Well, the trigger was the blackouts and
Speaker A
generators under our windows, because we used to rent an apartment in the New Lviv district.
Speaker A
My husband and I are both people who grew up in private houses. We aren't apartment people, so our souls were drawn to nature, to the greenery, to the forest, and to the silence. Because , again, when you go out and see all
Speaker A
that from your window, you feel like you are constantly in the forest. That is why it is so great here. Silence.
Speaker A
Silence. And silence once more. There is none of that noise here. In the city , there is dust, noise, and nowhere to park your car. I, for example, have an electric car, and I can charge it here with no problem. There are some really
Speaker A
cool pluses in that, too. So, all the criteria matched up. We searched for a long time. It is actually very hard to find a place where everything lines up according to the parameters we were looking for—having enough distance
Speaker A
between houses, enough space, having peace and quiet, and having great neighbors. The people who have gathered here are just like that. They're all on the same vibe as us. There are families with small children, and it's quiet, convenient, and close to the city.
Speaker A
It’s actually very close to the city. It takes me about five minutes to get to Solonka, for example.
Speaker A
What? To Shana or to Solonka? Well, it takes me about five minutes to get to Solonka. Uh, well, basically everything you need is close at hand.
Speaker A
Uh-huh. Okay. How much does it cost? How much is it? Well, for now, ah, I don't know, can I say?
Speaker A
Yeah. Our channel is about business, about real estate. We must. Damn, the rent. Yes, yes.
Speaker A
Currently, the rent is 1,000 dollars a month. Uh-huh. So I think it’s a really great price.
Speaker A
But you say you are thinking about buying. From the point of view of the rental cost, well, it's very low. And why are you planning to buy? Because from a financial perspective, well, those funds could be invested at a
Speaker A
higher interest rate than paying rent. Well, it's not from a financial perspective, but from the perspective of building and setting up a family nest, when you do renovations for yourself, buy furniture for yourself, set everything up for yourself, and
Speaker A
there is always a feeling that it’s a long-term perspective. Yes, because rent, well, it’s always a contract, and it still has some term of use, but here there are more family values, when you are setting up your home fully.
Speaker A
Many people say that living outside the city is expensive in terms of utilities . What is the actual average monthly or average annual maintenance cost?
Speaker A
Electricity, water, gas? Generally around $ 100. Everything, totally. Everything. Well, here the house is fully, just so you understand, on electricity. And this is honestly, frankly. Last month, which was July, I paid 1,700 UAH. My car charges every night.
Speaker A
Cool. Well, it’s very great here. Well, because there’s a three-rate, right? Meter. It is very convenient. And for maintenance, we pay around, if I'm not mistaken, 3,000 UAH. Well, so everything together comes to $ 100.
Speaker A
Uh-huh. And in winter? And in winter it comes to, um, about 250 or so. But, again, I repeat, the whole house is on electricity, meaning underfloor heating and everything is heated by electricity. When my husband brought me here, it was spring, and we
Speaker A
were really, really waiting to move out of the city. We arrived here just at sunset, and the sun began to set. I was just entering from there. It’s like, you see, straight through. The sun is shining and we just opened the door. I
Speaker A
walked in and, honestly speaking, I even teared up. I don't know, I just had this feeling.
Speaker A
Like I'm home. You really get the feeling that you're at home here. It's cool.
Speaker A
It's really nice here. If you want to experience this for yourself instead of just dreaming while watching this video, leave your contact details in the form below. We invite you to visit us so you can truly see it
Speaker A
and realize that your dream of country living is much closer than you think. Thank you. Thank you.
Speaker A
And thank you too. This is a typical 99-square-meter house . It's the most popular one and the most in-demand.
Speaker A
Do people live in this one? No, they live in the smaller ones. They have two rooms and a kitchen-living room. And here?
Speaker A
80 square meters. This one is 99. This is the classic layout. It has a kitchen-living room and three bedrooms upstairs.
Speaker A
And the price for this rental? 1300-1400, 1000. Are there still houses for 1000? There are more in the community like this one too.
Speaker A
They are being built in the second phase, and they will also be 1000 dollars for rent.
Speaker A
1100. 1100. Well done. Show us. Alright, let's go. So, we enter the kitchen-living room. We have a large utility closet here for storage. By the way, every house is equipped with an inverter and a battery. In case of a
Speaker A
power outage, the house stays powered. Here is the first-floor bathroom. It's separated. And further on is the utility room under the concrete stairs.
Speaker A
This is where the heart of the house is hidden. Everything needed for it to function well. Yes, this is the main room. Kitchen-living room with access to the terrace. Uh, the table. It can be set for six people, sometimes eight.
Speaker A
TV, fireplace—it's designed in every house, with heat distributed throughout . It's not just for show; it runs on firewood. The residents really use it for ambiance, and also if they need to add heat to the house on long winter evenings.
Speaker A
Yes, a large, spacious kitchen. We have all the appliances here. See, dishwasher, fridge, oven, stovetop. Uh, we can also provide a microwave if needed, and, uh, many small appliances.
Speaker A
Okay, let's go to the second floor. All our houses have these carpeted stairs. It feels very nice when you walk barefoot, and it's safe for kids. Okay, we are entering the first child's room.
Speaker A
Everything for a child's comfort is here. Uh, the table is height-adjustable, so you can have a sleeping area and, uh, a closet. And right next door is the other child's room. If needed, we furnish it with a desk as well. And it's quite nice here.
Speaker A
This is what we were talking about. This here is the chimney exit from the first floor. It's spread across two rooms upstairs. The third room is the master bedroom. A workspace, a double bed, and a beautiful panoramic view. On
Speaker A
the second floor, we have a shower, another toilet, and we equip every house with a washer and dryer.
Speaker A
There’s no need to hang anything up. Everything is washed and dried right here. Such a house rents for between $ 1,300 and $ 1,500 depending on the location. And it brings in a confirmed and stable 8-9%annual yield from rent
Speaker A
alone, plus capital appreciation. It grows in value by 5-10%per year. The town is being filled with infrastructure. We will see what has appeared in Derevach and what else is coming. And this raises both the rental price and the value of the house.
Speaker A
Look, we were in one of the houses and mentioned you. Do you think you were mentioned with gratitude or something less kind? Honestly, Sania.
Speaker A
I’d like to believe it was with gratitude, to be honest. Things I would have improved. You know, Sash, no matter how many houses you build, with every house, every phase, and every town, you always think you would do things differently. I will say
Speaker A
that the first and second phases look visually the same, but we still make certain changes that aren't very visible at first glance, but they are clearly better from a functional standpoint, in terms of materials, speeding up work, and everything else.
Speaker A
We didn't change the basic materials. We’ve been building for five years now. We haven't changed the basic materials regarding insulation, thermal conductivity, and everything else because we commissioned calculations and all the design solutions back then on what is best to build with. We
Speaker A
researched the market and so on. We know that the Western Ukrainian market loves brick and ceramic blocks because they are quite traditional materials and it’s a fairly conservative market . Nevertheless, we went with our own technology, which most of Europe has
Speaker A
been building with. For a long time, 15 or 20 years, in Kyiv and Central Ukraine. And we didn't lose out because aerated concrete has many advantages over brick, starting with thermal conductivity, ease of masonry, and that thermal conductivity I mentioned. It
Speaker A
also keeps it cool in the summer because the 100 mm of insulation creates a thermos effect. Yes. And considering certain features of the local market, we still kept brick partitions inside the house so people would feel more at ease, as we were
Speaker A
often reproached: "How will I hang something or hammer in a nail?" So there you go, you have brick, and you have the ability, right, to hang whatever you want on the wall.
Speaker A
Okay, Sanya, but such a concept as construction quality is a very specialized topic, right? And let's be honest, it's practically impossible for an average consumer to figure it out.
Speaker A
So what is quality construction, what can it not exist without, what must be 100%there for it to be quality, and how do you tell it apart from poor quality?
Speaker A
Uh, look, I myself have been living in a house for over 10-12 years. Uh, Oles has lived in a house for many years. My house, which was built 10 years ago, was built much worse than what we are
Speaker A
building now. I'm not even talking about the fact that in private construction, no one does basic things, like, well, they do geodesy because they need to mark out the plot, at least to place the house. Yes, no one
Speaker A
ever does geology. Well, it's very rare when building privately for oneself. I'm building for myself and someone does geology. We are forced to do it here because we have a structural engineer, we have a licensed architect who designs, who demands that we comply
Speaker A
with certain building codes and so on. And we are forced to provide him with geology so he can properly design the foundation that will be suitable.
Speaker A
Whether it's a strip foundation, which we have in 90%of cases, or a strip foundation plus piles. There are houses that are partially on piles in addition to the strip foundation, because the soil there sometimes happens to be unstable,
Speaker A
or fill, or something else. And we are forced to follow the standards of the architect, who, as he argues, must play it safe, because he has a license, he has a seal, because later they'll be blamed, and so on. This is the
Speaker A
foundation of foundations, in the literal sense. In the literal sense, a mistake made on the foundation. How many projects are there where a retaining wall drifted, where a load-bearing wall drifted.
Speaker A
You can fix and redo many things in a house, but the hardest thing to redo is the foundation.
Speaker A
100%. What else can make a house be considered poor quality? At the beginning of construction in '22 , we used, for example, floor slabs, uh , concrete floor slabs, ready-made structures from the factory, and so on.
Speaker A
Now in two-story houses, the floor slab between the first and second floor. Considering modern trends and safety standards and everything else, we switched to monolithic flooring, pouring a monolithic slab, because, well, few people use that. First, it's more expensive, second, it takes longer
Speaker A
right and uh third, it's more expensive. The most important thing in construction, in business, is cost, cost price, the budget. Right? Today, under these conditions.
Speaker A
Yes, but we take modern trends into account, we rely on feedback, we are constantly implementing some uh, well, we can't ignore the challenges that exist right now, you know? And whether we want to or not, we do it and we
Speaker A
offer it to our clients. What is the biggest screw-up made in the completed town regarding construction? A screw-up that we would change here and change something radically. Radically, nothing.
Speaker A
Improvements, yes. Uh, the biggest screw-up in construction is, perhaps, still the selection of contractors.
Speaker A
And there are nuances, for example, if you noticed, even near house 4.1, where Oles himself lives, uh, we had to damage the lawn and dig up, uh, certain utilities. It was the water supply, which, as it turned out, was leaking.
Speaker A
Okay. And two years have passed, and at the connection, the contractor did this work poorly, yes, connected it, and over time it started leaking.
Speaker A
Uh, could we have foreseen this? Now, with experience, I would know how to foresee it. Soldering, for one Insulation of these joints, for another , because when the ground settles, they seem to have covered it with sand and
Speaker A
so on, but they didn't do it thoroughly enough. And we, and our technical supervision engineer, didn't pay attention to this, so this is already the second case in two years where the water supply in our house is leaking
Speaker A
and we have to redo it. Uh, is this a global screw-up? No, but it's unpleasant.
Speaker A
Uh-huh. If you are planning to build a house or want to understand for yourself what true quality is, leave your contact information in the form below and we will arrange a meeting with Oleksandr. You come over, it doesn't obligate you to anything. You
Speaker A
can bring some good meat or something to go with the meat and just have a concrete conversation there. This was built like this, this is bad, this is good, purely because we want there to be more high-quality homes in Ukraine.
Speaker A
Like, if you were building right now, because you say you've lived for 15 years, yes, in the house, and I, how long, when I started building in '07, '08. And I also would have built everything differently now. For you,
Speaker A
what are the most essential rooms in a house? You know, without which a house isn't a house?
Speaker A
Uh, for me, it's definitely the common room where the whole family gathers. The living room, you mean? Kitchen, yes ?
Speaker A
Yes, living room and kitchen. And as a fire enthusiast, it's the fireplace area, which, as a rule, is included in this same living room and so on. Uh, it's a place where the whole family gathers. It must be spacious,
Speaker A
functional, and comfortable enough for the whole family. Uh-huh. Cool. And if we compare, um, since I have a detached house, right? I have a huge territory there, 1.5 hectares. But I realize that if we're talking about a family, then a cottage
Speaker A
community has many advantages. What do you think? The pros of a detached house , because there are many of them too, versus living in a community. This is, you know, purely interesting; in a community, the most important thing is
Speaker A
that they help you solve household issues, because I also live in a village, in a detached house that belongs to me, and I don't have a management company, let's say, that would handle a certain number of issues . But there are constantly some issues
Speaker A
that arise, like mowing the lawn—well , a bunch of questions come up that you can't handle yourself. You have to either find a person, make arrangements , check if they showed up or not—well , basic administration. That's a big
Speaker A
plus in a cottage community, that you don't have to deal with that. Cool. Now about the people, since they say finding decent builders is just like winning the lottery. Getting all those six numbers, you know? Honestly, many people say: "There's no problem,
Speaker A
just pay well and on time." And no, I won't say there are no issues or that certain situations don't arise, but, well, over the years, thankfully, we've learned to treat people like humans. And when you truly organize and
Speaker A
manage the process competently, communicate with people in a timely manner, pay them, and so on, the team stays together. Therefore, well, I'll reveal a little secret of mine. Um, I knew that starting in spring, as a rule , in the season people are busier and
Speaker A
crews are already working somewhere and and it's hard to make agreements with them once things are underway. I spent a month and a half or two in the winter making agreements with the people I was interested in for the season. I
Speaker A
understood the construction plan for the next six months. We agreed, we coordinated a work plan with them, and, in principle, we've been moving along smoothly this season, so the preparation helped. Prepare your sleigh in the summer, and your building crews
Speaker A
in the winter. That's cool. That's for sure. We've moved on to visit some other neighbors. We're speaking a bit quieter because a child is sleeping in the room . And that's the class of living in a house, that even when the child is
Speaker A
sleeping and resting, you can sit outside, start a book, get some air, and go out. I see a kiddie pool here, and balls. Tell me, how long have you lived here and why did you choose living in a country house? We've been
Speaker A
living here for a year now. We moved in in September last year, fleeing from Kyiv due to the shelling. Why did you choose here? Because I like that the house is, well, kind of like our own.
Speaker A
We are renting it, of course. We have a management company. When we were looking at houses in Lviv, the owners showed them to us. When they show them, you feel like you're a guest. Well, like they say: "Here's my coffee
Speaker A
machine, here's this, here's that." And you feel that being a guest isn't very comfortable. We have two children, and we feel comfortable here. We are, we are doing very well. The younger child plays outside here, the older one
Speaker A
inside, and we have a cat. And we understand that we are taking all the rental risks.
Speaker A
Yes, small children, yes, but we take full financial, well, like responsibility if our cat does something. We have a hamster, we can safely buy a hamster. We know that, well, it can live with us and no one will say anything. We are very
Speaker A
comfortable. Tell me, during this time, did you live in an apartment in Kyiv? In an apartment or out of town?
Speaker A
In an apartment. And if you compare the difference, which is better? I don't want to go back to an apartment ever again.
Speaker A
Why? Well, I like it much better here. We spend the entire summer here. We were on the terrace, we drank coffee, the kids played, the kids swam. Uh, well, with a one-year-old child, it's great to have an open terrace; she goes out
Speaker A
and plays while I cook. Did she crawl out or walk out? Walked out. She already walks out.
Speaker A
She plays by herself, and I can see her . Well, in an apartment, we wouldn't have spent that much time outside, 100% . Plus the pool; my six-year-old son didn't get out of the pool all summer.
Speaker A
That's also very cool. How much does it cost? Uh, we currently pay 1,000 dollars excluding utilities. Utilities are about 5-7,000 in the winter. Uh, every year our rent for the house increases by 100 dollars.
Speaker A
Uh-huh. So that is already provided for in the contract. What are the downsides ? Well, it can't be all sweet. I don't know. Well, uh, our son goes to a private school in the center of Lviv.
Speaker A
Not in the center, but where Uhorska Street is, I don't know, near the Sofiyivka complex, that's where we take him. Uh, and it seems easy to get to King Cross. 15 minutes and we are there , well, maybe 10. But if you go
Speaker A
straight into Lviv, of course, there are traffic jams and everything else. That is true.
Speaker A
Yes, but from the point of view of living in the city, you often encounter those traffic jams anyway. Yes.
Speaker A
Yes. Yeah. Well, I tell my husband that we've chosen a place that takes a long time to commute from. He says: "Well, if you consider the current situation in the country, I'd choose to drive twice as long just to be safe and
Speaker A
comfortable with the kids here." Okay. And how did you handle the blackouts, that whole experience?
Speaker A
We basically didn't feel them, because a Ukrainian company installed a battery and an inverter for us. Yes, we got all of that for free. A person just came over to us and installed it. Plus, we have a fireplace; when it was cold and
Speaker A
there was no electricity, we had the inverter and we'd turn the fireplace on . If it was really cold, we'd move the kids to the sofa, sleep here, have the fireplace going—we had such a romantic atmosphere, really.
Speaker A
Cool. Cool. And what about the pros, like five main unexpected pros that came up that you didn't even anticipate ?
Speaker A
Living out of town. Uh-huh. Well, the fact that we walk more, because in an apartment you have to get ready, you have to dress the child, you have to pack everything into the stroller. You're hauling everything , like a pack mule mom. Yeah, yeah,
Speaker A
yeah. With all these bags. But here, I just go out, walk with the stroller, the child wants a drink, I pop in for a second and I’m back out in a second.
Speaker A
That was not obvious to me. I never thought about that. I didn't think I would be into flowers.
Speaker A
Uh-huh. I was such a city lady, you know, and here I've already planted flowers and I love it. I get pleasure from going out, picking some rosemary, picking some parsley. It’s comfortable, it’s great. Uh, another pro, I don't know,
Speaker A
you feel more harmonious. I didn't realize I was stressed in the apartment because, again, neighbors on the left, on the right, some commotion, a lot of noise, but here we sit down and have an incredible sunset. You arrived in the
Speaker A
morning, but if you stayed until the evening, you'd see how incredible the sunset is. And we are here...
Speaker A
That’s an invitation to a barbecue. I just realized that. Today is Sunday, so barbecue.
Speaker A
So we sit, admire the sunset. And that is also a very cool plus. What else? Hm.
Speaker A
I thought you wouldn't notice that I hadn't named everything. I notice everything, and our viewers do too. And they are subscribed, and they comment, and they put pluses in the comments. So let's reveal it for them, you know, for people who are
Speaker A
city-dwellers to the core their whole lives, you know, urbanized, super urbanized. Well, you know, I feel even more motivated here. Uh, I’m on maternity leave, but I’m working at the same time. I’m a child psychologist, and all this harmony and peace—it’s
Speaker A
just more comfortable for me to work here. I somehow find more strength and tranquility. I just head out, take my computer with me, make some coffee here , and get to work. A cafe opened up here; I haven’t been yet, but I need
Speaker A
to go work there, it's a coworking space. That’s why I have more inspiration and peace to work. I mean, my head isn't in the noise, you know, it’s free, so I can create and think about things. Uh, like that. Cool.
Speaker A
Thank you. You're welcome. Thank you. How long have you been living out of town?
Speaker A
Almost two years in Derevach, and we're moving to Hodovets soon. Class. So, tell me, what are the real downsides compared to living in the city? Like, the real ones.
Speaker A
Well, look, all our potential clients say it's too far to drive and that there's no grocery store. Well, things like that.
Speaker A
But for you, specifically for you, we've solved these issues. We have a daily shuttle from Stryiska to Science Street to the school; it takes 20 minutes and they bring the kids back.
Speaker A
Plus, from the management company, we’re launching a daily shuttle next year, funded by the management company, so you can go to the nearest shopping mall or transport hub in the morning and return......
Speaker A
back in the evening. Uh-huh. We’ll vote on the schedule for when that will be. As for a shop, a Rukavychka opened, and we generally look for locations where there are stores nearby. And, uh, I’ll show you , we’re opening a store for residents
Speaker A
in the cottage town next year. Uh-huh. Cool. For you and your family, what are the main downsides compared to living in Lviv?
Speaker A
Honestly, none. I wouldn't move back to the city. Agreed. Then what are the non-obvious upsides—the things you didn't expect, but that impressed you the most?
Speaker A
Uh, we didn't expect that the neighbors would be such a great group. We have a very friendly community gathered here. Everyone talks to each other. Everyone has some kind of pet, similar interests, and we spend time together.
Speaker A
Are you talking about launching the town as a business project? Yes. Yes. Uh, what do you mean by that? What does "launching" mean? And why would you leave a cool house that you live in and enjoy, just to move again?
Speaker A
You know, the concept of "launching life" into a town. Uh-huh. Uh, guests come over, the first ones to move in, you go visit them, you see a tree that needs to be replanted over there, something is yellowing, something—
Speaker A
there are some points that are not obvious during construction, but at the moment of operation they pop up, and you solve them quickly. And the people who move in later feel, well comfortable.
Speaker A
Mhm. Mhm. Okay. But if we talk from the point of view of life for your family, where is it better for you? Here or in that new town?
Speaker A
But that's for when you come back in a year. But look, I already arrived today, it's Sunday. You said there would be meat, everything would be great, but the grill isn't even lit yet. No, look, we'll have a house, we'll have
Speaker A
meat. This is a different company, this is a different project. Then subscribe to this channel. Maybe Mykola will film it and there will be meat.
Speaker A
But today we are building a house. What is this? You say you built a cafe. I think, why such a small size?
Speaker A
This is something that doesn't exist in any gated community in Lviv. And we will have, this is an exclusive right now. Not an exclusive. Say that again.
Speaker A
And we, we will have it in every town. Okay. This is a co-working cafe for residents, where you can buy good coffee, drink it, no need to go anywhere, where you can hold a meeting, no need to go home. Many of our people
Speaker A
live and work here. Uh, this person, as a rule, doesn't have an office and works from home. And either they go to the city and book a co-working space there, and pay money for it. Or they have to go to a gas station or a cafe
Speaker A
to get some coffee. That's time and money. Or if you need to have a birthday party, you have to rent a cafe . Well, how much is that? Well, at least, I don't know, for a small company, 10-20,000. Here you take it,
Speaker A
you make an agreement at cost price, because we'll only take from the residents for cleaning and electricity.
Speaker A
Mhm. Well, this isn't a business, it's an addition to the pool, the playground , and the TV that shows It's infrastructure for the residents.
Speaker A
Mhm. If we're talking about the $ 50 rent increase, where did that figure come from? Because you are a rational person.
Speaker A
We have a 10%annual increase stipulated in our contract. But we don't just blindly raise the price, right? We fill that price with substance. Mhm. And we get new options that provide comfort and a better quality of life.
Speaker A
And everyone agrees, yes, no questions asked, and they are ready to accept this increase and pay it without any issues.
Speaker A
Show me what's inside. You're welcome. In the first cafe, Rurbanist. How? Rurbanist. Rurbanist. This is the first cafe in a gated community in Lviv. We invite all residents, treat them to sparkling wine , they all make tiramisu together, and
Speaker A
then enjoy it as guests. Cool. And who pays for the groceries, for this whole thing? The management company. That’s what I was talking about, that we have something going on all the time. And this is the spot where every month there will be some
Speaker A
kind of culinary masterclass, or we’ll just... Every month. Yes, a month. How much money is this actually, in terms of the expense?
Speaker A
Um, well, the cost of such an event ranges from 5,000 to 10,000 UAH per month. That's a lot. Yes.
Speaker A
How many households are here? We already have, well, by the end of the year there will be 22 houses occupied. Each one pays 3,500 per month for management.
Speaker A
And that is enough. Cleaning, um, landscaping, sewage, maintenance, the pool, operating this cafe, the park, the lake . Well, it doesn't make a profit, but it covers everything, and it saves some portion of the money for depreciation.
Speaker A
Um, yes, there is. How much is the depreciation fund? Um, about 20%. So, look, in 5 years you’ll need to raise the rates. Will there be money for that?
Speaker A
Well, of course. Okay. And for this management company to be profitable, how many households must there be? We calculated that from 40 houses it will already be profitable . Yeah.
Speaker A
You say 22 households. How many people is that? Well, multiply by three, 60 people.
Speaker A
Next to this cafe, we are opening a store for non-perishable products next year. It will be self-service without a clerk, and it will have a basic set: groceries, um, salt, pepper, sugar. The stuff that you always need and don't
Speaker A
have. Why is this needed? It is, well, it’s by request. Right now, we are going against resident interaction a bit, because currently, if you need something, you go to the neighbors, like in those jokes.
Speaker A
Yes. And here, there will be an option. Well, this is actually the biggest request. What do I do if I don't want to drive anywhere?
Speaker A
Or I forgot. Listen, yesterday I went to make pasta, I see half a pack, you know, and I have to drive 20 minutes into town, well, excuse me, and you end up cooking some other product. But here you just swiped your card, took those
Speaker A
couple of packs, whatever you needed— salt ran out, or sugar—some kind of thing you can't account for, you know.
Speaker A
Right, you can't predict it. You can’t stock up on everything, and some item is always missing. Plus, there are people who don't like living with supplies at all. They live in the moment. Yes.
Speaker A
Yeah. In the moment. Okay. What would I like? How much will it cost? Around 25–30,000 dollars.
Speaker A
Premises plus initial stock. Yes. Plus the inventory is not ours. We reached an agreement. By the way, this is our client in the townhome community . They bought a house. They have a chain of stores across Lviv. Uh, they
Speaker A
are stocking it. It will be sold at a markup. It will just work like a coffee machine every week. Our partners were very worried that our consumption would be low. Well, for you to understand, they drank 15 liters of coffee in the
Speaker A
first week. Well, that's absolutely normal for an office location like this . Even though not many people lived there yet.
Speaker A
Garch. No, well, we were just filming an interview, people came, drank coffee , took two or three to go. We were just taking a break, we didn't show them because they came from the pool in swimsuits. That's exactly what we were
Speaker A
talking about. It would be cool if they were by the pool, but it's also cool they walked, got some steps in, you know, it wasn't for nothing.
Speaker A
Mini-mini-minimal sport. Mini-this. Okay. And, uh, in the little shop there will also be a program showing self-checkout , and it will automatically show when they need to replenish stock.
Speaker A
Will this little shop be about money for these, well, let's say, store owners? Will it be a profitable point or just an option?
Speaker A
Well, of course, it's profitable. Why wouldn't it be profitable? How much will it bring in per month according to your forecasts? Uh, well, it won't bring in crazy turnover because it's only groceries, frozen goods, well, and water, snacks—things
Speaker A
with a long shelf life. Uh, but some 500, 600 dollars a month without any involvement, it will definitely bring.
Speaker A
Are you going to rent it out to them? No, it's free. Cool. Cool. And do you plan to do this in the next ones? In all our towns, we provide these options. If you want to become a Budadim partner, because the
Speaker A
plans of him and his team are Napoleonic, leave your contact details in the form below and write " partnership." And I will connect you with Oles. You'll discuss it; if you want it to be your shop, if you want to
Speaker A
put your coffee machine there or other things, write "partners." Oles and I will discuss it over some barbecue, and I will definitely introduce you. He is open to any mutually beneficial cooperation. Thank you for being with us, and we are moving on. Tell me, in
Speaker A
general, what are your plans? And do you remember when you started in Lviv, what did you realize, how fast are you moving, what would you have done differently in terms of business strategy, and where are you aiming now?
Speaker A
Well, our goal was 1,000 houses in 10 years, and we are still on track with that. Currently, we have over 200 under construction across all our locations.
Speaker A
And next year, that includes four locations. Pidborisi, Deryvach, where we are preparing, and Sokolnyky. Every single one of our locations is developing. We are also buying up more land and increasing the number of houses. And next year, we plan to open
Speaker A
a fifth location near Lviv and a sixth one in Ternopil. Okay. And if we talk about what you need, what resources you need today to reach your goal faster, what is the main resource for you right now?
Speaker A
Land plots, partners. Land plots and partners. If someone has a cool, interesting piece of land, from what size?
Speaker A
From 2 hectares and up. In the Lviv region, Ternopil, Ivano-Frankivsk, Chernivtsi, and beyond. Volyn.
Speaker A
Volyn, yes. And there is a form here for landowners. Leave your contact info , send the cadastral number, include the geolocation right away, and if you have photos or video footage, we will definitely consider it. Perhaps for Oles, or maybe other companies, it
Speaker A
would be interesting, and we could create a cool project together. If you are an investor, or what kind of partners are you looking for?
Speaker A
There are partners with land, partners with money, and partners with ideas. If you are a partner with money or ideas —if we talk about a partner with money, what is the starting amount?
Speaker A
Well, it all depends on the city, the location, and the plot. Well, probably 600,000–700,000 is the starting point .
Speaker A
So, if you have at least half, or if you know you'll have it soon, also fill out the partnership form below. We will discuss each case individually, because when you have people with ideas and money, cool projects are born. I didn't
Speaker A
expect such a trend of moving out of the city. Our cafe is called Rurbanist —that's an international term, rurbanization. Moving out of the city while maintaining your urban lifestyle.
Speaker A
Meaning a person lives there, doesn't worry about anything, the management company takes care of everything, and you live outside the city with a completely different vibe.
Speaker A
Uh-huh. Uh-huh. And this is in our third year of operation—a massive demand where people are ready and understand the value of this product. They are willing to sell their apartment in a residential neighborhood of Lviv and move a little further away, but live in
Speaker A
completely different conditions. Everything is here within one town. Well, all the kids are in the pool right now, so it's quiet here for now, but in the evening it will be very, very active.
Speaker A
A town of strength, a small town. Yes. And we also set up a trampoline Uh-huh.
Speaker A
for the kids. You just take care of your barbecue on the terrace. The kids are here socializing, you know, having fun. It is very convenient. That's a huge advantage specifically of these small towns, isn't it? Because having your
Speaker A
own detached house is also really cool, but you have to create all of this yourself. You have to invite guests, you have to think about where they'll be, what your children will do. You have to take care of all of that. But
Speaker A
in a small town, it's all very organic, you know, because everyone has a need for social interaction. We are social creatures, after all. And it's so organic that within your own space, you can just suddenly find yourself in this
Speaker A
community—someone by the campfire, someone on the playground, someone fishing, and just enjoying it. Tell me, please, taking the target audience into account, how easy is it to rent out a house right now? How much time does it take to find your target, well, like a
Speaker A
tenant? Have you seen the Lviv suburban real estate market? Look, I'll be honest with you, I thought maybe it was just our company, you know, having so few listings. We contacted other people who have been working for a long time, talked to them
Speaker A
, and it was just a "wow" moment. Is there demand for houses outside the city? Our team gathered information from the market, spoke with experts, and here is what we want to say.
Speaker A
Greetings, Ruslana. Our Rytm team really wants to understand what is actually happening in the rental market in Lviv right now. First and foremost, we want to understand the situation, the real situation, from market specialists regarding supply and demand
Speaker A
in Lviv. Uh, greetings, Mykhailo. I want to say that the market in Lviv is incredibly active right now, and I would say a collapse is coming soon, because the demand to rent apartments or houses in Lviv is already, well, probably two to
Speaker A
three times higher than the supply. And I want to say that this situation didn't just start today; this situation has been building up for three weeks.
Speaker A
Around August 15th, my team and I noticed that a lot of students had arrived. And that was the first wave, because parents wanted to settle their children in for safety. Then, closer to September 1st, came the second wave.
Speaker A
That was a different budget; families were relocating. And now, a third wave has begun. You could say it's been this past week. This is a wave of very solvent people who have made the decision, and it feels like, you know,
Speaker A
catching the last train. And they are coming in with significant budgets for rent, but we have nothing to offer them .
Speaker A
I understand you very well. But here, I'm even more interested in what the demand is right now specifically for rentals outside the city.
Speaker A
Outside the city—do you mean houses? Yes. Well, suburban real estate, let's put it that way. Uh, well yes, because we still have some apartments outside the city. There is demand, a huge demand, of course, people want them renovated, so they can just move in and
Speaker A
live. Unfortunately, such offers, like houses for rent in Lviv, are very, very scarce. In some way, we weren't prepared for this, uh, suburban house rentals. It was just starting for us, so there is really great demand.
Speaker A
So you are talking about the price. Could you give us a price range, more or less, for renting houses outside the city? Good question, Mykhailo. Look, the cost still depends on the location.
Speaker A
Let's see, I could divide our clients into two or even three segments. The first segment of clients is those with a budget of up to $ 1,000. These are families with one or two children who want safety and have that budget. The
Speaker A
next tier is, let's say, those with more average solvency, like IT professionals, who can afford up to $ 1,500-$ 2,000; also families. Well, and now the demand has really taken off.
Speaker A
People are willing to pay $ 5,000–$ 8,000 a month to rent a house outside Lviv. It's not Lviv or the owners dictating the price. It’s the clients calling and saying themselves: "We are willing to pay this money." And who are
Speaker A
they in general, if you can, who are all these people by category who are interested in suburban rentals in Lviv now?
Speaker A
The first wave was students, with a budget for apartments of up to 20,000 UAH. Then came the second wave—these are solvent people, families with kids under 35 years old. Mainly from the Kyiv region, well, Dnipro, Zaporizhzhia , Sumy—these categories. They were
Speaker A
under 35 years old. Something like that . Their budget was $ 1,500 to $ 2,000.
Speaker A
Now there is a third wave. These are, well, solvent, wealthy families in large numbers. And here the budget starts at $ 3,500–$ 8,000.
Speaker A
Wow. Well, 3, 5, 8—these are some serious numbers you're mentioning for rent, actually. And here I'm curious, judging by these figures, what is the long-term prospect for this suburban rental market, considering these metrics?
Speaker A
Well, you know, back when we talked about renting, and I've been in the rental business for over 10 years, we used to say that a one-year lease was a short-term rental. Now, in principle, all those who come to us, they all
Speaker A
start with a one-year term. Uh, there used to be, well, in the last four years, six-month leases were normal, because 10 years ago owners wouldn't even consider six-month terms. All these people coming to us, for starters , they are here for a year, they want
Speaker A
to see what will happen next. Is there a prospect that they will stay with us?
Speaker A
Yes, and a very big one. And I believe that the suburban rental market is, well, in such high demand. Currently, we are covering perhaps 25%of the 100%, so there is still 75%to work on.
Speaker A
Ruslana, and this is the last thing that interests me, hand on heart. If a close comrade, friend, or relative of yours wanted to move to Lviv to rent property, what would you advise: renting an apartment in the city or a
Speaker A
house outside the city? Uh, Mykhailo, that's a good question. I personally have an apartment in the city, but I have been living in a house outside the city for the last eight years. And this house saved me. Houses
Speaker A
outside the city saved us all during the coronavirus and during the war. That is why I definitely think that the prospect for a house outside the city for the next five years will be very, very great. We will be migrating
Speaker A
outside the city like this. Well, there are many indicators. It's safety when there is an alarm, an air raid alert regarding shelter. It's possible to afford to connect all energy resources, a generator, and so on. Definitely outside the city. When I was housing
Speaker A
students and saw that at some point I started refusing them because I had no place left, I felt very sorry that our universities, realizing the influx of students, didn't organize more for their accommodation. Uh, well, it was critical. Well, children are coming to
Speaker A
us, and it's such a responsibility for those kids. That was the first problem. Second, uh, unfortunately, it seems to me that we should have been preparing for at least six months for the fact that winter would come and such a
Speaker A
situation could arise in Ukraine. Why didn't we finish the renovations in those new buildings that have sprung up so much around the city of Lviv? At that time, even back in September, I would have begged and urged everyone: "
Speaker A
Whoever built cottages, and we have many of them, do repairs, any basic sanitary repairs, so that people can simply move in." It is not about marble stairs and thousands of dollars invested in renovations right now.
Speaker A
Basic repairs so that people are safe and warm. This is what we really need.
Speaker A
Yevhen, greetings. Hi, Nisha. Yes, I would like to ask a few questions to understand your opinion regarding the current state of real estate rentals in Lviv.
Speaker A
Okay. Uh, what specifically interests you? I will gladly answer all the questions you ask.
Speaker A
How would you generally describe the ratio of demand to supply specifically for rentals in Lviv? See, if we're talking specifically about rentals, definitely, the August-September period stands out from the rest of the year because the demand is extremely high. This is primarily
Speaker A
due to students, since it has always been the case that students come to Lviv from the region and from neighboring regions. Now, many students are coming from central Ukraine, so realistically, August was extremely busy. All the good apartments were
Speaker A
snapped up, for example, those within walking distance to any university. Whether we take Lviv Polytechnic or Franko University, everything was taken . But what makes this year different from previous periods is that demand remains quite high even now, in
Speaker A
September, and it is projected to stay that way for October and November. What is currently happening with the demand for suburban real estate in Lviv ?
Speaker A
Okay, sure. Well, there is no point in talking about suburban real estate when looking at students. But suburban properties are now being rented by families, being rented by...various types of corporations, firms, large manufacturing plants, or companies that are moving to the Lviv region,
Speaker A
understanding and anticipating that the winter of 2026-27 will likely be more difficult than before. So everyone is preparing; they are not waiting for the first snow or the first blackouts and power outages, but are slowly moving and looking for places now. So, it is
Speaker A
definitely a similar situation with houses as it is with apartments. Who is the primary audience? Is it, as you said, students, people who relocated from the eastern regions, or more Lviv locals who want to temporarily live outside the city? Well
Speaker A
, there are definitely Lviv locals who want to live outside the city temporarily. They have been there over the last four years, but that is definitely a smaller number of people than those who are moving in. We are
Speaker A
currently seeing families on the market who have good jobs and property in Kyiv , Kharkiv, or Dnipro, and since they can work remotely, they pack up as families and move, renting a house or a large apartment, for example, from
Speaker A
August '26, aiming for April or May '27 , moving for this winter period for about 8 to 9 months. Therefore, I wouldn't say it's primarily Lviv locals . It is definitely people from other regions who are moving here. Many
Speaker A
people are now leaving Kyiv, given the very difficult situation happening there every day, where it is becoming, um, just very hard to live in terms of everyday life: with the same gas stations, shopping centers, warehouses, and empty supermarket shelves. They are
Speaker A
coming here, where it is a little safer now, and where you can simply live in peace, so that children can go to school or kindergarten and not worry so much about the shelling. So, first and foremost, it is families who are moving
Speaker A
. Many companies have also started reaching out, similarly relocating their employees, that is, even the families of these employees, and are looking for several properties.
Speaker A
Specifically, this includes suburban real estate. Therefore, I would most likely put the main emphasis on people currently leaving Kyiv, Kharkiv, Dnipro , and other regions. Internally displaced persons who, unfortunately, lost their homes there over the last year. So, they are choosing to rent
Speaker A
somewhere in Ternopil, Ivano-Frankivsk, or Lviv. And this definitely should be, most likely, suburban housing for them, but with maximum accessibility to infrastructure.
Speaker A
Alright. Could you then please give me an idea of the range of what is currently happening with prices for suburban houses?
Speaker A
I will say this: this price market is very confusing for everyone. Why? Because you sort of understand that, for example, 700-800 dollars seems like a fairly reasonable budget to rent a house with two or three rooms and a
Speaker A
kitchen, with all utilities, and, for example, on a plot of land, maybe a small plot of 4-5 ares, so you could park one or two cars, but the market is extremely and radically strange. I mean , what I mean is: this 800 dollars,
Speaker A
which is considered and has always been considered the norm, is now turning into 1000, or even two, if we are talking about a better house in a newer segment, especially if it has some autonomy, a larger plot of land, and so
Speaker A
on. So prices, um, it is not entirely clear how this market is being formed.
Speaker A
Of course, it is formed by high demand, but a sort of average median for what we consider suburban real estate does not really exist. What people pay attention to here is accessibility, for example, the commute to Lviv. Well,
Speaker A
that is an important factor, because from one suburb you drive, for example, 20 minutes, and from another suburb, you drive 40 minutes or an hour where the transport connections are worse.
Speaker A
And, definitely, what is important is infrastructure. It happens that in a suburb there is all the necessary infrastructure. For example, if we take Vynnyky, yes, there is Vynnyky near Lviv, it has, uh, schools, kindergartens, small shopping centers, shops, gas stations. Well, everything
Speaker A
you need to do your shopping there. But there are suburbs where there is only one grocery store, and you definitely have to drive somewhere towards Lviv to stock up for the week, to fuel your car , and get some basic, uh, things like a
Speaker A
barbershop, a pharmacy, or something else. So it all also depends on the location, and definitely on the type of house. There are houses built a long time ago, there are some, you know, 300-400 square meters, uh, with renovations from the 2000s. So, uh, you
Speaker A
know, if it weren't for the current situation, perhaps they wouldn't rent out very well, but considering the situation and that everything is being taken, such houses are also becoming popular now.
Speaker A
What will the situation be in the long term regarding rental prices for suburban real estate? In my opinion, if we take the near future, the next six or nine months, prices will not decrease. Because there will definitely be those who will move to rent now in
Speaker A
September, and there are those who will be a little delayed and will move to rent in December. It's the same, you know, as with charging stations. Some people already bought them in '22, some in '23. Some thought everything would
Speaker A
be fine, but things happened as they happened in '24. And those who haven't bought them yet are still waiting until December, uh, to buy. Similarly with moving, uh, well, to renting suburban real estate, I am sure that a steadily
Speaker A
high rental rate specifically for suburban housing will remain for the next six months. That's definitely until the end of winter. There is also the question, you know, when it comes to a head for someone and when they decide to move, what will happen in the
Speaker A
summer. And there will definitely be a number of people who will like it, who will stay and live there, who will send their children to schools or kindergartens, get attached to the place, or maybe change jobs, or will
Speaker A
have the opportunity to work remotely and stay. There will definitely be a number of people who will return.
Speaker A
Therefore, what will happen to prices, for example, in the summer of '27 is difficult to predict, but I don't see any reason for them to drop very significantly. Of course, there will be the standard decrease in demand and a
Speaker A
corresponding decrease in pricing policy, but they definitely won't drop drastically. Thank you. And tell me one last thing. If your friend were planning to move to Lviv, would you advise him now to move into an apartment in the city or a house
Speaker A
outside the city? Well, look, considering what a friend might want more, because and depending on their lifestyle, it's also very important to pay attention to that. Because a young person, if they want, for example, to spend more time hanging out, or have
Speaker A
business, say, in the city center, or often travel around the city for work, we would probably consider renting an apartment. But if we, of course, take, like, a family that has one or two cars , if there's an opportunity to work
Speaker A
remotely, uh, very often there are pets , like a dog or a cat, so definitely the choice here would be a house, with great infrastructure, the possibility to drive 5-10 minutes to get everything , and with adequate accessibility to
Speaker A
Lviv. Let's give people, you know, those who want to create a town, a simple recipe for success, so that there are more cool places in Ukraine and even more people integrate from the city to the suburban environment and
Speaker A
live their best life. Let's make a 10- point checklist of what a town cannot be without, and what it means to launch it and fill it with life.
Speaker A
Common use areas, comfortable plots, not just one hundredth of a hectare. And how big? Although 3.5 and up.
Speaker A
No shared walls; I am categorically against townhouses. There. Well, that's okay for the city, but for a suburb it's nonsense. Then, the work of the management company. First is the basic needs so the town functions. Well, everything like sewage, electricity,
Speaker A
garbage collection, cleaning, and so on . And, uh, the second thing that almost , well, basic things are still being done. But the second thing we do, that few others do, is various kinds of things that stimulate community
Speaker A
development. What I was talking about. Uh-huh. Events, happenings, some celebrations, anything that touches on the needs of the target audience.
Speaker A
Uh-huh. What else? Mm. Uh, houses as ready-made solutions. Every second house we have has an electric car. Accordingly, power capacity. Well-thought-out autonomy, because many developers just leave everything to fend for itself. They buy square meters from them and you're on
Speaker A
your own. That's what it's called. Ah, uh, in today's realities, this point needs to be refined. We have an inverter and a battery on our wells.
Speaker A
And we can be without power for a full day. If there's an even longer blackout , then a generator connects to the wells, and we keep working. And well-thought-out layouts, that's very important, because often you walk in and some kind of labyrinths start, just
Speaker A
like or extremely large, non-functional spaces, non-functional, as well as light for those extra square meters that were built to heat, to warm, to finish and and energy efficiency is something, I don't know if Alexander mentioned it or not, yes, but [the houses are]
Speaker A
comfortable, warm, and cool in the summer heat, and warm in winter. Collaboration with real estate operators, because we are very open in both directions, both to realtors, agencies, and intermediaries, and we are equally ready to share everything with them. And most importantly, what
Speaker A
I’ve already emphasized, is using your own product yourself. Uh-huh. Because, from my point of view, it's not right to sell 100-square-meter houses while living in a 600- square-meter one. Yes.
Speaker A
is how it's viewed. So, I use these products myself. I live here and will live in all the future neighborhoods. And I understand that what I have built, I carry this philosophy myself, and I share it with the residents who come to buy and rent
Speaker A
houses from us. Look, the people who have watched up to this point, they are fantastic. I thank you very much. And if you are subscribed and leave a comment, that would be absolutely fantastic. What should they earn with us? They should
Speaker A
earn on rental yields up to 10 percent annually and also on the capitalization of the houses. So, buy a house, rent it out, and sell it in 4-5 years at a peak price.
Speaker A
But with the promo code, what can we promise? And with the promo code "Rhythm" barbecue. Look, I haven't eaten barbecue, so I have the right to demand the maximum. None. But with the promo code, we are ending our company's
Speaker A
four-year anniversary promotion. That's four gifts with a purchase. Uh-huh. So with the promo code "Rhythm," we are extending this promotion exclusively for you.
Speaker A
Uh-huh. For how long? Until the end of the year. Okay. And what kind of gifts are they?
Speaker A
Well, there are, like, 50 gifts. It's a lottery. I'll show you, by the way, what it looks like. From a kettle to a kitchen as a gift.
Speaker A
Cool. Four gifts. Yes, pulled four times. Yes, can I try? Sure. Let's try right now.
Speaker A
Thank you for being with us. Let's go pull some gifts. Okay. Now I’m pulling four gifts. I don’t know if fate will grant them to me, but let's just check what's there and how lucky I am today. So, the first one here is
Speaker A
probably a kettle. Four years. Aha, a proper washing machine. That's it, Nastya, a new washing machine here. A multicooker is also a cool thing. Have them pack it into the trunk right away.
Speaker A
Yes, that's right. I’m setting it aside specifically so that it's clear. And the fourth gift. You subscribe for now, while I pull it out. An ironing board. All practical things. Nice. Cool bonus. We are in Hodovytsia. This is
Speaker A
our third location. Uh-huh. And for the second time, I'm saying this phrase: "First time in Lviv." Uh-huh.
Speaker A
Behind us, a spa complex is being built , and it will open its doors by spring.
Speaker A
For all residents of the entire network . It will be home. What will be there?
Speaker A
Uh, there will be a dry Finnish sauna, a lounge area, a massage room managed by a massage studio, like that massage.
Speaker A
A cafe and coworking space. Do you remember what it's called? Uh-huh. He remembers. Urbanist.
Speaker A
Yeah, yeah, yeah, yeah. Like, lessons from an urbanist. I get it. Yes, only Urbanist, but in reverse.
Speaker A
Only in reverse. Yes. Uh, yes. Uh, well, by the way, a general shelter, where we built it near the complex, a reinforced concrete structure, a reinforced concrete bunker.
Speaker A
That's according to the new requirements. Yes. Okay. How much is the investment in the spa center?
Speaker A
The investment in the spa center is serious. Okay. A numbers guy. But how much money ? A lot. Well, it's, well, it's 200 square meters, right?
Speaker A
And I figure with turnkey renovation, well, maybe 300,000 dollars. Even more, actually. Yeah. And there's also a separate playground, a square, and a pool.
Speaker A
It was designed here, but we significantly expanded this plot. There will be 40-50 more houses.
Speaker A
Where? In which direction? In that direction. And there will be a direct road from here on foot to the church we drove past. Just now we drove the long way around; those who know this location understand. But this will
Speaker A
be directly to the center of Hodovytsia , to the village center, literally 300-400 meters on foot.
Speaker A
Uh-huh. And our small town will be right along this road. Alright. And if we talk about the burden on each household for this spa center? If in Derevach they pay 3,500 for the management company, then here it's 4,500 a month because of the spa
Speaker A
center. What is there in this location, besides the spa center, that isn't in Derevach?
Speaker A
Well, the keyword is location, and it's significantly closer to Lviv than in Derevach. And if in Derevach, well, 95% arrive by private transport, the connection to the city is okay. You have to cross the highway on the way
Speaker A
back. Well, it's difficult. But here there's a stop, transport, Basivka-Hodovytsia, 20 minutes, lots of buses and minibuses. It's very easy to get here by any transport. And from here to Victoria Gardens, it's 12 minutes by car.
Speaker A
Cool, if we talk about money, the purchase price, rental price, and profitability, it's better here because it's at an earlier stage of construction. Well, you see, uh, renovations are still underway here, nobody lives here yet.
Speaker A
The price per square meter is 1,100. And you can still get a good return on capital, because there's a planned increase of 100 per year, so we'll be at 1,400-1,500 in 3-4 years.
Speaker A
Okay. If we talk about the rentals planned here, the rental is identical. Uh, so the two-story one is 120, the most popular ones here are the 99-square-meter two-story ones, like the one we walked into with the renovation. Also $
Speaker A
1,300-1,400, but the price for a turnkey renovation here is cheaper. Right now the price is 195,000 for an area of 99 square meters plus a 20-meter terrace, plus an attic, plus the land.
Speaker A
Okay. And what percentage of people bought here for rental purposes? And how many for their own residence?
Speaker A
For us, this percentage remains consistent across all locations. 30-40% of houses are bought for rental.
Speaker A
Uh-huh. And how many houses are still available here? The first phase, nine houses are sold.
Speaker A
In the second phase, half are sold, half are invested. Sold means I'm telling you they can't be bought anymore. Well, not anymore at all.
Speaker A
And that third phase, uh, there are still some available there. Well, everything is written on our master plan. And we are actually starting all the houses this year.
Speaker A
These are the construction phases I'm telling you about, but there are also residential phases. 40 houses is one residential phase, and the second phase , the next 40 houses, we will start next year.
Speaker A
The pool will be there, there a large one, uh, the same as in Derevach, 15x5.
Speaker A
So, we are heading to the Halytska Resydentsiya location. This is Sokilnyky. Our joint project with a company from Dnipro, uh, Vertex Group, a company with vast experience in development. It builds in many countries. And we spent a long time
Speaker A
looking for this location. We had a specific request for the business segment, uh, with all our advantages that we have in our residential areas.
Speaker A
Uh, and we found it. This is a, uh, plot of more than 4 hectares, where 41 houses are located. Uh, a spa complex.
Speaker A
Also a pool; if in Derevach it's 15x5, then in Sokilnyky a 20x6 size is designed. Uh, and there should also appear, uh, something we don't have in other residential areas yet. That is a paddle court, well, and a range of spa
Speaker A
facilities, a Urbanist cafe, uh, a massage room, uh, a Finnish sauna with a relaxation room. As for the houses themselves, they are all detached, there aren't even any connected by a roof. Uh, we have two single-story projects of 103 and 125 square meters
Speaker A
and two two-story projects of 175 and 198 square meters. The feature of the layouts is that every house is designed with a safe room. This is a reinforced concrete bunker with an emergency entrance and exit. What also distinguishes it from our other
Speaker A
developments is 24/7 physical security with an access control system. No one will be able to just walk in or drive a car in; only with the owners' permission by invitation. In every large city, there is a village that
Speaker A
lies within the city limits. And Sokolnyky is actually one of those. In fact, it is Lviv, but as of now, it is undeveloped. Yes, it is undeveloped, it’s de-urbanized, like, like a cafe.
Speaker A
Yeah. Re-urbanized. Meaning, over there you are re-urbanizing, while here you are urbanizing. Well done.
Speaker A
And that is unique. Me. Well, something like this won't happen again. I mean, all of this will be built up in about 5-7 years, from a sports history perspective. There is a padel court designed here.
Speaker A
Uh-huh. The first phase has 20 houses, a park in the middle, and then there will be a second phase of 20 houses.
Speaker A
And the park—is that some kind of protected area, right? It’s a plot of land that we leased for a park for many years.
Speaker A
Also, a spa complex, and a "Rubanist" cafe. And all houses have shelters designed inside each house. And, well, you can see that this is a slightly different architecture, lots of panoramic windows and plenty of technical rooms I already mentioned.
Speaker A
There will definitely be many people wanting to buy in this project for themselves. Well, because of the location, right? And what are the, are there three typical designs here? Four.
Speaker A
What is the area? What are the prices? Today 103 square meters, 125 square meters, 175 square meters. The first two are single-story, 175 are two-story, 198 are two-story. The price as of today is $ 1,650. Six more houses at this price,
Speaker A
and then a markup. In what timeframe will the final delivery be for this complex?
Speaker A
In a "shell" state, but there is also an option with renovation. The price for the renovation is $ 800 per square meter. That’s a full, complete renovation with plumbing agreed upon with the client and a kitchen.
Speaker A
We will only furnish them if they are for rent. And there will be physical security here. We are building a security post right now.
Speaker A
Why? There is a demand for greater security, but that will affect the maintenance cost. What is the projected cost, more or less?
Speaker A
It will be 6,000–7,000 UAH per month. Uh-huh. Okay. Well, the price per square meter is significantly higher here.
Speaker A
And the rental price will be different as well. Today, if we look at all your locations, where would it be most profitable for an investor to buy?
Speaker A
Let’s be honest. We are talking about money. For rent at "Berezky," it’s getting ready. We are ready to guarantee nine percent per annum. For what term?
Speaker A
Well, permanently. Uh-huh. Cool. In foreign currency. In currency, yes. With capitalization, meaning this is an investment at cost price. Or 65,000 in "Hodovytsia", where there's a planned increase of $ 200-300 , or from 100,000 in "Halych Residence" with a planned increase of $ 300 over
Speaker A
two years. In percentages, it's better for capital over two years. In Hodovytsia. What will the percentage be? Uh, for both locations, it will fluctuate around 15-18 percent per annum.
Speaker A
Per annum. So in two years, a person will earn 30-36%. Yes, nice. Everything is working out. Look, uh, a wish for yourself in 5 years.
Speaker A
A wish for yourself in 5 years. Uh, finally to stop in the 12th town and settle down there.
Speaker A
Class. What else? And everything will come true and to fulfill all the plans, because as we were recording, you see, we are even slightly ahead of schedule for the year it plays into our hands, our audience.
Speaker A
You know, yes, yes, it's all thanks to the video with Oleksandr. That's the only way and our audience.
Speaker A
And a huge thank you to the audience, because there was great feedback on the first video, it motivated us to do everything better and faster than planned.
Speaker A
Cool. Thank you. Everything is working out. Thank you.
Topics:Lviv suburbshouse rentalsreal estate investmentrental yieldsuburban livingproperty market UkraineGalician ResidenceRITMOleks Pishchakhousing demand
