Investing in dormitories. The founder of Coliving One is testing a new format of income-generating real estate.

Oleksandr Ryabchun, founder of 450 Group, which builds Coliving One income-generating buildings, is launching a new format for Ukraine – investment in a private student dormitory. The model assumes that the investor buys a smart apartment in the building and receives up to 10% per annum in currency, without participating in the management of the property.

The project's idea has personal roots. Ryabchun's children are still in school, but will be pursuing higher education in Ukraine in the future. The entrepreneur wants them to live in comfortable and safe conditions, rather than in outdated dormitories with an atmosphere that hinders rather than helps their studies. This prompted him to create an experimental format of student housing, which he plans to test on his own project before scaling it up.

Correspondent LIGA.net I found out what the specifics of investing in a student dormitory are, what the advantages of the project are, and how much one room will cost.

Income-generating dormitories as an experiment

The four-story dormitory with 69 apartments, which Oleksandr Ryabchun is building, is located near the "Nyvky" metro station in Kyiv. Each student renting accommodation will have their own room with a full-size bed, desk, wardrobe, kitchenette, bathroom, and shower. "A small hotel room, but with an atmosphere that motivates learning," explains the entrepreneur.

The project includes video surveillance in the building, a fire safety system, a shelter, and 24-hour security. For the convenience of students, the dormitory will have a co-working space and a cafe with the option to order basic breakfasts. The expected commissioning date is the end of 2026.

The rental cost will start from 8000 UAH per month. Potential residents will undergo screening and must confirm their student status. After that, they will sign a one-year contract with the management company, which also belongs to Ryabchun.

What are the conditions for the investor? The cost of a smart apartment with furniture, appliances, and renovation starts from $39,000. After launch, the investor will receive up to 8% annual return in currency, but will not participate in management. A payment plan with a 30% down payment will also be available.

The project is being implemented with the participation of a pool of company investors who have already invested in Ryabchun's projects. "We are experimenting, testing whether this model works in practice, and only then will we enter a wider market," explains the entrepreneur. If the launch is successful, the project is planned to be scaled up.

If, due to unforeseen circumstances, there are no students, Ryabchun has a Plan B – repurposing the building for co-living. It will differ from a dormitory in that not only students, but a wider audience will be able to rent apartments there.

Ryabchun already has experience managing coliving spaces. Since 2019, he has been building such projects in Kyiv and attracting investors to them. Currently, the Coliving One network has four buildings in Kyiv, and four more are under construction. Rent starts at 10,000 UAH. There are no vacancies in any of them. on the company's official website.

What are the prospects for the project?

In Kyiv and the surrounding area, investors are increasingly interested in formats such as serviced apartments in the city center and co-living spaces, as well as real estate for country recreation, says Andriy Marenchuk, managing partner of Ribas Hotels Group. These properties attract investors with their low barrier to entry and good return on investment, even in unstable conditions, he says. Ribas invests in and manages hotels, cottages, and glamping sites. Currently, in portfolio and Ribas has 26 hotels.

Investment student dormitories are a common practice in developed countries, where many people receive higher education, and where foreign students come to study, says Marenchuk.

Whether such dormitories will be in demand in Ukraine is still an open question. There is currently a lack of real statistics on the current need for student housing, notes the managing partner of Ribas Hotels Group. "Before the pandemic, demand was stable, and after the war ends, this need will return," he is confident. "The student housing sector has potential – it's just a matter of time."

There are 120 higher education institutions in Kyiv, according to data register of educational institutions. Many foreigners study there, in particular. In 2024, according to... data According to the Visit Ukraine service portal, Kyiv National University of Technology and Design had about 1700 foreign students. And the National University of Life and Environmental Sciences of Ukraine had 550.

The student housing market in Ukraine is underdeveloped, but promising, according to Andriy Zhurzhiy, founder of the investment company Inzhur. His company builds, buys, and manages commercial and residential real estate, attracting private investors.

"We don't know of any implemented, significant projects. It's definitely worth looking into," says Zhurzhii. In his opinion, for a student dormitory to be successful in terms of rental, it must be located in close proximity to educational institutions. Near the "Nyvky" metro station, where Ryabchun is building his dormitory, there are three private universities: "KROK", Kyiv School of Economics, and the University of New Technologies.