Where to Invest in Ukraine in 2020

The forecasts of experts and international organizations for 2020 are disappointing. Economists predict another financial crisis will sweep the planet in 2020-2021. Against this background, investors are extremely cautious about investing money. In Ukraine, the situation is complicated by political and military risks and a difficult investment climate. Accordingly, and perhaps already traditionally, our citizens prefer to buy up the currency and store it “under the mattress” instead of investing somewhere. According to the publication BusinessViews, the volume of such "investments" can range from 20 to 86 billion US dollars. However, this approach does not contribute to the growth of the well-being of Ukrainians, because it is known that money must be in circulation and generate profit. In addition, over the past year (November 2018/2019), the hryvnia has strengthened against the US dollar by 14%. GTInvest analyzed the situation on the global markets and created a selection of the safest and most profitable investment ideas in 2020.

Commercial Real Estate is Your Passive Income

If you have an amount of $100,000 and more, you want to invest money but have not yet decided on the direction of investment, then you should take a closer look at commercial real estate. The main advantage of this sector for investors is a high capitalization ratio, which is 8-12%, while the same indicator for residential real estate is only 3-7%. Commercial real estate is usually rented out for several years at once, so this option is perfect for those who want to receive long-term passive income. Commercial real estate comes in several different types: retail space, offices, hotel complexes, and villas, industrial, warehouse, and logistics premises. Commercial areas located in Bucha (a suburb of Kyiv) are an excellent investment asset. One of the three largest construction companies in the Kyiv region offers a unique opportunity to purchase commercial premises ready for renovation as a tenant. The average rental rate is already leased premises in this residential complex is from $ 12 / sq. M.

Agribusiness - Export Oriented and High Profitability

The agricultural sector in Ukraine remains one of the most attractive sectors for investment. The agro-industrial complex remains one of the engines of the Ukrainian economy; in the first 9 months of 2019, Ukraine exported agricultural products worth $15.6 billion, and the share of the agricultural sector in the total structure reached 42%. Considering that since 2014, despite all the negative factors, investments in the agricultural sector have increased by 81%, agriculture continues to be the engine of the economy and extremely promising investment industry. At the moment, the agricultural sector is the most optimal option in Ukraine for placing both small investments (from $ 100 thousand) and large investments (up to $ 100 million). In addition, the recent opening of the land market will definitely increase investor interest in the Ukrainian agricultural sector and lead to an increase in the value of agricultural land.

Innovative Business

Startups or enterprises operating in untapped market niches remain one of the best investment assets even in times of crisis. Good examples in Ukraine are:

• Revolut – “bank without branches”
• Preply – international EdTech-marketplace for learning foreign languages
• Allset – a mobile application with which you can book a table in a restaurant and pay the bill
• DMarket – monetizing items in online games

According to expert forecasts, 2020 will not be an easy year for Ukraine or the world. In a difficult period, it is necessary to invest only in the most profitable projects, so even the most experienced investors will benefit from the help of qualified specialists who will select the best asset among hundreds of investment proposals. To do this, we offer you our services for starting a business in Ukraine.