Should You Buy an Apartment or Keep Saving in 2026?

Should you buy an apartment or keep saving your money? This is a question I get asked regularly — by readers, friends, and even people who happen to find out that I follow the real estate market. And every time, I have to be honest: there is no one-size-fits-all answer. There are figures, calculations, and your personal circumstances — something no article can decide for you. Let’s take a closer look!

Ukraine’s real estate market in 2026 continues to operate under the realities of the war: limited supply, cautious developers and, at the same time, steady demand from people who finally want a place of their own. Comparing today’s market with the pre-war market or with European markets is not particularly useful, because the rules are different now.

Prices are rising, but at different rates depending on the city and market segment. The price per square metre in Kyiv on the primary market remained high in summer 2026 and could reach USD 2,000 — more than 15% higher than a year earlier. The secondary market is even more varied: in different regional centres, residential property prices have increased by anywhere from 7–13% to 20–23%.

The key drivers are the shortage of new construction, with some projects frozen or postponed; rising material and labour costs; and growing demand for self-sufficient homes. Apartments with backup power and water supplies are selling faster and at prices above the market average. Another factor is the government’s eOselia programme, which supports demand in the primary market and helps prevent a sharp decline in prices.

Waiting for the “bottom” is a strategy that rarely works in the Ukrainian market. Supply is limited rather than excessive, so the basic forecasts I have found do not anticipate a sharp overall decline. This does not mean that waiting is necessarily a bad idea. It simply means that the likelihood of a significant price drop appears lower than the likelihood of further, even if slower, price growth.

The decision to buy a home is rarely purely mathematical. Most often, it is a compromise between your current financial capacity, your desire to have a home of your own and the realities of the lending market.

Owning your own four walls is primarily about predictability. A monthly mortgage or instalment payment is fixed and does not increase at the landlord’s discretion, while rent can respond to market fluctuations. You also gain complete independence from a landlord and greater freedom to make changes: renovating the property to suit your needs or installing backup systems, which in today’s environment have become a basic necessity rather than a luxury.

The psychological factor is also important. Owning your own home provides a sense of stability and security, allowing you to make long-term plans without worrying about unexpected eviction or another change in rental conditions.

Today, the market offers several financial tools for purchasing a home:

• Traditional bank mortgage. According to the National Bank of Ukraine, average rates on hryvnia loans to individuals remain relatively high in 2026 — around 30% per year. At the same time, banks are increasingly offering joint programmes with developers at reduced interest rates.
• Developer instalment plans. A convenient alternative to a bank loan, usually involving a simpler application process. However, the repayment period is generally shorter — around 1–5 years — meaning the monthly payment can be significantly higher.
• eOselia programme. The government’s affordable mortgage programme offers preferential rates of 3% or 7% per year for the first 10 years. From year 11, the rates increase to 6% or 10%, respectively. The maximum loan term is 20 years.

For example:

With an apartment price of UAH 2,000,000 and a down payment of UAH 400,000 (20%), a UAH 1,600,000 loan at an assumed 7% annual interest rate for 20 years would mean:

• Monthly payment: approximately UAH 12,000–13,000.
• Total payments over the full term: approximately UAH 2.98 million.
• Total interest paid: approximately UAH 1.38 million.

This is an approximate calculation based on annuity payments and a constant 7% interest rate throughout the entire loan term. Insurance, fees, property valuation, notary and other associated costs are not included.

The main entry barrier to a mortgage programme is the initial down payment. Under the basic terms, it starts at 20% of the assessed value of the property. However, people aged 25 or under are eligible for a preferential requirement starting from 10%.

In practice, the lack of this amount is what stops many potential buyers. Until you have UAH 200,000–400,000 available — plus an additional budget for transaction costs, insurance and notary services — a mortgage remains purely theoretical. That is why, for many Ukrainians, the question “Should I buy or keep saving?” automatically turns into a more practical one: “How can I save for the down payment as quickly as possible?”

A mortgage is a useful tool, but it is far from universal. If your current circumstances are not suitable for a long-term financial commitment, deliberately saving money may be a much safer and more cost-effective option.

A home loan is a commitment for 10–20 years and requires a solid financial safety net. You should definitely think twice about taking out a mortgage in the following situations:

• Unstable or seasonal income. If your monthly income fluctuates significantly, a fixed repayment schedule can become a constant source of financial stress.
• No emergency fund. In addition to the down payment, you should have enough savings to cover at least 3–6 months of living expenses, including mortgage payments, in case of an emergency or temporary loss of income.
• Uncertainty about the location. If you are not sure that you plan to live in the same city or area for the next 5–10 years, committing to a particular property may be premature.
• Social pressure. Buying an apartment “because that’s what you’re supposed to do”, “because everyone else is buying” or because your relatives insist is one of the fastest ways to end up with a financially disadvantageous deal.

To prevent saving from becoming an endless process, your goal should have a clear mathematical calculation and a defined timeframe.

Let’s assume your immediate goal is to save UAH 400,000 for a down payment.

• Option 1. Keep the money in cash or in a standard account. If you save UAH 15,000 per month in cash or in a non-interest-bearing account, it will take almost 27 months — around 2 years and 3 months — to reach the target.
• Option 2. Use deposit products.

If you put the same UAH 15,000 into deposits every month at an average annual rate of 13%, taking interest capitalisation into account, you could reach the target approximately 2–3 months earlier.

A difference of several months may not seem significant, but over the long term, using interest-bearing instruments can help you save time and protect your money from losing value.

Simply keeping cash while inflation is high means losing purchasing power. Over 2–3 years, the amount that was once enough for a down payment could lose a significant portion of its real value.

An effective approach to allocating your savings could include:

1. Hryvnia deposits. Bank deposits offering rates of around 13–13.5% per year can help offset current inflation and provide predictable passive income.
2. Domestic Government Bonds (OVDP). One of the attractive savings instruments currently available in Ukraine. Their key advantage over deposits is that the income is fully exempt from personal income tax (18%) and military levy, increasing the effective return. Government backing also guarantees repayment of 100% of the principal amount.
3. Currency diversification. Consider keeping part of your savings — for example, 30–40% — in a hard currency such as USD or EUR as protection against sudden currency depreciation.

To understand which option is better for you, you need to consider more than just the price of the apartment or rent. Buying involves additional expenses, while renting and saving requires you to protect your savings against inflation. Let’s look at the full picture.

At first glance, a preferential mortgage may look significantly more attractive than renting. However, it is important to look at the details.

So, comparing only the size of the monthly payment is misleading. To understand the real impact on your budget, add mandatory insurance costs and a reserve for property maintenance to your mortgage payment.

In July 2026, the National Bank of Ukraine raised its key policy rate to 15.5% and forecast consumer inflation at around 10% for the year. This means that money simply sitting idle can lose purchasing power relatively quickly. At the same time, housing prices may also increase due to inflation.

The conclusion is simple: saving without using a deposit or another income-generating instrument means losing ground to both inflation and the property market at the same time.

In addition to the price of the apartment itself, you should budget for transaction-related expenses such as property valuation, insurance, notary services and bank fees. Together, these may amount to UAH 5,000–30,000 depending on the property price, bank, insurance, valuation, notary and transaction structure. If you are buying a property on the secondary market, you should also consider potential renovation costs. If you are buying an unfinished new-build apartment, renovation expenses are likely to be substantial.

Buying property has long been more than simply a way to solve a housing need. Today, real estate is often viewed as a tool for preserving capital, protecting savings against inflation and generating passive income. At the same time, the strategy of “buy any apartment and wait for the price to rise” no longer guarantees a return. To make a property investment worthwhile, you need to assess not only its potential return but also the risks involved.

The logic is simple: buying at the early construction stage or on lower floors is traditionally cheaper, and the price per square metre may increase once the building is completed. This can work if the property is genuinely liquid: a good location, a reliable developer with a strong reputation and realistic completion dates. Always remember: a lower entry price comes with a higher risk of construction delays or the project remaining unfinished.

The risks are very real: construction may be frozen, completion dates may be delayed, infrastructure may be damaged, and the secondary market may experience a reduction in available properties as owners hold onto their homes amid overall uncertainty. Liquidity is the key risk of any property investment: buying an apartment successfully does not necessarily mean you will be able to sell it quickly and at a good price, especially in regions closer to the frontline.

This strategy makes the most sense for people who already have their basic housing needs covered and have spare capital that they can afford to lock away for several years. If an investment apartment would consume virtually all your savings and you have no backup plan, the risks may outweigh the potential benefits.

There is no universal formula for “buy now or wait”. Calculate your own numbers: the cost of the mortgage, your actual rate of saving for the down payment and the risk of property prices increasing. Sometimes it may make sense to enter the eOselia programme now; in other cases, waiting a year and strengthening your financial safety net may be the smarter choice. The key is to calculate rather than guess.

Mortgage secured against property for personal needs and other purposes
Up to UAH 10 million for important expenses or to purchase a home

Translation into English was created with the help of artificial intelligence.