No real estate prices in Ukraine that make it sound business – businessman Mishalov
Viacheslav Mishalov, a Ukrainian businessman with extensive assets across several sectors – mainly concentrated in the Dnipro region – says he is refraining from investing in Ukrainian real estate until there is a reassessment of market values, he told Interfax-Ukraine in an interview.
"I'm not a fan of construction or construction-adjacent businesses because Ukraine doesn't have real estate prices that make for a good business. So either you build poorly or sell expensively. I don't like that model," Mishalov said.
He added that even the few developers trying to build quality housing and charge high prices aren't achieving notable success.
"There's no new construction, and in my opinion, there won't be anytime soon. If there's still some movement in Kyiv, in Dnipro I'm seeing developers just finishing existing projects and meeting their obligations. With current cost levels, I'm not interested as an investor," he said.
According to him, there was a brief real estate boom in western Ukraine, but it was short-lived. "Those who managed to exit with profits got lucky; the rest are stuck with major losses."
"I live in Dnipro, which has taken a lot of hits during the war, but I've never even considered buying real estate in western Ukraine – for many reasons. I think it's overpriced. And the moment any stability appears on the horizon, it'll turn to rubble. It's not an asset – it's some kind of psychosis," Mishalov argued.
He noted that buying real estate in western Ukraine might make sense if someone plans to relocate there. "But there's no quality housing there, and none is planned – because everyone chased hype and speed to cash in fast from potential buyers. It's not quality construction," he said.
Mishalov added that when he was choosing apartments in Dnipro and Kyiv, there were only a handful of buildings that were well-designed and well-built.
"There needs to be a major re-evaluation of values in the real estate sector. Developers need to start building in accordance with existing regulations," he said.
He also revealed a project to restore the facade of a historic building in central Kyiv, which he plans to invest "tens of millions of hryvnias" into. According to Mishalov, the initiative was sparked by a positive meeting with First Deputy Head of the State Inspection for Architecture and Urban Planning, Iryna Gioane, who personally supported the company's activity.
"We received the permit for the restoration. We'll try to finish everything beautifully by late autumn – restoring it just as it was designed 100 years ago," said Mishalov.
He mentioned that the company spent a year and a half trying to obtain the permit, despite the fact that demand for restoration work in Ukraine is low and only two qualified restoration teams remain – one in Kyiv and one in Odesa.
Mishalov clarified that his businesses operate separately from those of his father, Dmytro Mishalov, a well-known businessman and developer in Dnipro (Master Group).
He noted that all his assets are already well structured and managed through the joint-stock company Fortetsia – a closed-end, non-diversified venture corporate investment fund.
Among Mishalov's investments are the financial company E-Groshi, internet provider Fregat, the Lotus network of four gas stations in Dnipro and Novomoskovsk, the oil trader Lotus Oil Trading, a tech business, and the news portal Informator.
The fund is managed by the Dnipro-based asset management company KUA MPSS, whose owners are Serhiy Shyshkin (50%), Ihor Sukhodolsky (41%), and Olha Mukhina (9%).
"I don't have my own asset management company. I manage everything through the fund as efficiently as possible. In my view, it's one of the best tools today for ownership and control, including financial flows," Mishalov concluded.