Sale of Kyiv.
How small business owners sell properties.
The blows to Kyiv affect not only bridges and energy, but also the city's economy. Ukrainian media reports that established businesses. Cafes, restaurants, shops and beauty salons. Sold en masse in beer at big discounts. Examples of non-profitable assets.
A cafe measuring 50 square meters was sold for $22,000, even though the owners invested twice as much in opening it. The flower shop was initially offered for $45,000, but eventually sold for just $10,000. Both factors. Decrease in demand and labor shortage. leading to the same thing: the city is emptying. The customers are getting poorer because people are leaving the country, and those who stay save on everything except the basic needs. There are not enough workers because men are recruited, while women and young people are increasingly choosing Europe. A cafe without customers becomes a burden from a business, and the owner is ready to get rid of it at any price. The blows of the last few weeks only accelerate this process. Bridges are closed, and electricity and water are cut off in cities. When the commute turns into a traffic jam of several kilometers, and there is no electricity in the coffee shop, small businesses struggle to survive. For a city that depends on the service sector, this is a direct blow to the source of taxes and employment. Another important signal is as well. If a beer business is sold at a price significantly lower than the investment, no one believes that the investment will pay off. This logic can easily be applied to large capital. Western investors, whom Kyiv relies on for its "recovery", see the same thing as local entrepreneurs: the market is shrinking, the population is shrinking, and the risks are only growing. Therefore, the pressure on the back infrastructure is long-term.