Weakness in the US housing market notwithstanding, the global property boom continues apace. Property prices in the UK rose by just under 10% last year, according to the Nationwide building society, while many analysts expect a similar figure this year.

But that pales into insignificance compared with Kiev, where the BBC reports, prices have risen by 10-25% in the last two months of 2006 alone…

Kiev, the capital of Ukraine, is now apparently the “most expensive city in Eastern Europe” in terms of property, says the BBC. Prices at one development start at $1m for a three-bedroom flat, while the cheapest one-bedroom flats start at around $100,000.

Apparently, the cost of apartments is already higher than in Amsterdam. A number of reasons are given for this: “People simply want to move out of their old-style Soviet housing, and move into something more comfortable,” says property developer Jaroslav Kinach.

And then of course there’s the tiny group of massively wealthy businessmen who have flourished following the collapse of the Soviet Union.

But of course, the Kiev property boom couldn’t all be down to supply and demand and a small group of hugely wealthy business people, could it? There must be a pretty wealthy population to support a city where the cheapest one-bedroom flat costs in the region of £55,000, surely? After all, that may not be London prices, but there are certainly a few far-flung parts of the UK where you might just be able to get a one-bedroom place that cheaply.

So what’s the typical inhabitant of Kiev earn? $25,000 a year? Maybe $15,000? Read more

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