Oleksandr Ovcharenko, co-owner of Standard One, spoke at the ‘Invest Forum’

On 27 November, Kyiv hosted the panel discussion . Experts discussed business models, trends and the market outlook. The panellists were , Artur Lupashko, Yevhen Kudryavchenko and Viktoria Bagaziy, with Dmytro Karpilovskyi of UkrInvestClub moderating.‘Income-Generating Property: Strategies from the Leaders’ at the ‘Invest Forum: Property’Oleksandr Ovcharenko

Build-to-Rent in Ukraine: a model that works

Standard One was the first to deliver a residential project designed specifically as Build-to-Rent. From the outset, the model was built around long-term letting, in-house management and well-planned infrastructure, which together ensure predictable returns.

The first building, S1 VDNG, generated a 10% annual rental yield and 48% capital appreciation during construction, laying the groundwork for further projects.

“When we built our first property on exactly this Build-to-Rent model, we proved beyond doubt that it works”, said Oleksandr.

Speakers made the point that the income-generating property market cannot work without a professional operator to handle all day-to-day operations. At Standard One, this is the job of its own income-generating property management company, S1 Property.

“Our operating company, S1 Property, removes all the hassle for tenants and investors alike. We’ve developed our own standards for 24/7 hotel-style service.”

Oleksandr stressed that management quality is critical to a successful business model. That is why Standard One invests in engineering, reliable materials, standardised service and safety: as owner of the property, the developer is the one who will have to run the building and repair it when needed.

Kyiv: the most stable rental property market

Standard One builds only in the capital, and that is a strategic choice. Kyiv has stable demand even in wartime and none of the seasonality seen in resort or tourist areas.

The figures bear this out: S1 VDNG is 99% occupied, and demand for rental homes in the capital has not fallen but kept growing steadily. Ovcharenko puts this down to a shift in what tenants expect:

“Tenants no longer just want to find a flat – they want energy independence, security and 24/7 service.”

Standard One’s key principle links tenant comfort to investor returns: the longer someone lives in the building, the more stable the investor’s return.

Other panellists agreed. Yevhen Kudryavchenko, for example, noted that Kyiv property is currently an extremely undervalued asset: for those with the funds and the readiness to manage the risks (which do exist), there will certainly be opportunities to make money from capital appreciation and from other sources, as the capital offers excellent prospects.

Benefits for tenants = benefits for investors

The company’s co-owner set out the clear logic behind the returns:

“Tenant comfort = predictable income for the investor. The better the service, the longer the tenant stays and the more stable the investor’s income.”

Standard One offers hotel-standard service, convenient property management, efficiently planned flats, energy independence and security. Together, these create long-term demand and high occupancy.

REITs as a tool for growing the market

Part of the discussion focused on REITs, a form of collective property investment that opens the market to a wider audience. In April, Standard One launched S1 REIT, which delivered a higher starting yield than anticipated: 8.4% in foreign currency.

“With a REIT, you can invest in income-generating residential property without buying a whole flat. For 122,000 UAH, you get the same rate of return as someone who owns an entire flat. And it will bring in a stable income. That’s not a hypothesis – it’s been proven.”

At the end of October, the S1 REIT VDNG fund’s yield was even higher, at 9.24%.

Standard One expands its network: three sites under construction and a move into a new format

Standard One is now building three new projects at once: S1 Obolon, a classic Build-to-Rent scheme; S1 Poznyaki, the company’s largest residential project; and S1 Terminal, serviced apartments in the short-stay and mid-stay format, which is growing fast in Kyiv. Looking ahead, the company also plans to launch a REIT in which the fund will own an entire building.

At the end of the discussion, Oleksandr Ovcharenko stressed that Ukraine’s market for income-generating residential property is still in its early days:

“We were the first to deliver this project… We’ve adapted our model to Ukrainian business. We’re not afraid of competition. There’s room in this market for everyone, and we’re among the leaders.”

Our team at the event

The Standard One team was there too: Viktor Boichuk, Commercial Director of S1 REIT; Nadiya Rybakova, Commercial Director of Standard One; Nadiya Filonenko, Head of Sales; and many others. They met the guests, advised them on the investment opportunities currently available and presented a special offer on S1 Obolon for event guests.