Ukraine a long term investment

Ukrainian property companies were the star property performers on AIM last year, providing a stark contrast to the global downturn.

AIM-listed XXI Century Investments and Dragon Ukrainian Properties & Development revealed large increases in net asset value this week.

Ukraine has experienced a growth in the amount of consumer spending as a result of an increased availability of personal debt, and this has increased demand in the residential and retail sectors. The relative political stability and move towards EU integration following last year's parliamentary elections also make the country a better environment for cross-border investment.

XXI Century, which develops mixed-use and retail-led schemes, saw the value of its portfolio jump almost four times, rising from $454m (£228m) at the end of 2006 to $2bn (£1bn) at the end of 2007, as valued by Jones Lang LaSalle.

'We believe that Ukraine's real estate market will continue to grow in all segments, reflecting the strong dynamics of the Ukrainian economy,' said Lev Partskhaladze, XXI Century chairman.

Despite the years spent under Communist control from the USSR, Ukraine retains a wealth of attractions. The people are hospitable; there is abundant Gothic, Byzantine, and Baroque architecture, miles of gently rolling steppe and the Black Sea coast - once a popular diversion for the Russian elite.

Nearly every city and town has its centuries-old cathedral, and many have open-air museums of folk architecture, caves stuffed with mummified monks, and exquisite mosaics. The countryside is filled with villages where time seems to stand still.

There are many attractive cities across the country including Kamyanets-Podilsky, Lviv, and the early twentieth-century resort towns of the Black Sea coast. However, the primary focus for property investors is the capital, Kiev.

The heart of Kiev lies in the Old Town, which is concentrated around the north-eastern end of Vulitsya Volodymyrska and contains a number of Kiev's picturesque historic landmarks. Kiev's main commercial promenade, the Vulitsya Khreshchatyk, is a bustling thoroughfare lined with shops. Old Town is within walking distance of central Kiev.

Andriyivsky Vzviz, Kiev's most charming street, winds its way north from Old Town to the base of the Podil district, the historic merchants' quarter and river port. Andriyivsky is lined with galleries, shops, restaurants and cafes.

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