A GOOD deal of hyperbole is used in Ukraine: “This palace is the most beautiful in Europe”; “Ukraine’s economy is growing faster than China’s”; “The population of Kiev is now incredibly wealthy”. These part-truths were among the comments made in our minibus as it bumped over potholed roads through villages south of Lviv, near the Polish border. Our destination? A ski resort of the future. The tendency toward misinformation is one inherited from the Soviet system and is something of a hindrance when trying to discern whether there is money to be made in such a scheme. There is, but it’s not a sure bet.

Hanroc, a British developer responsible for Eagle Rock and Lakeland Golf Village in Bulgaria, is planning an apartment complex for skiers, called Eagle Valley, in the rural town of Slavs’ke in the foothills of the Carpathians. The success of the scheme is reliant on the political situation continuing to improve. With Ukraine still a fledgeling democracy, the possibility of a change in government is ever present. For those brave enough, the pay-off for the risk may be high returns. Yields of 15 per cent, as predicted for Eagle Valley by Hanroc, are unlikely to be achieved in established markets on a relatively small initial investment. The smallest investment option at Eagle Valley is £25,000 for a studio flat, with a small reservation fee, later deducted from a 30 per cent initial instalment. The remaining 70 per cent can be paid on completion, scheduled for July 2009. The scheme is for cash investors only.

With development lagging 20 years behind neighbouring Poland, the country’s crippled postSoviet economy is evolving in a rushed fashion; corruption remains a problem.

Hanroc hopes that Eagle Valley will be the first of many developments, which might spoil the view from the balconies (every apartment has one), but would launch the town as a resort and a leading Ukrainian skiing location.

The pistes in the Carpathian Mountains leave something to be desired compared with Western Europe. Local bureaucrats are keen to emphasise that development is only beginning, with many ski lifts still being built and two gondolas in the pipeline.

For now the town exists in a time warp. The little local houses are painted lilac, sky blue and pea green; many have corrugated-iron roofs. Holiday accommodation has been in traditional guesthouses, which lack many of the facilities that tourists might expect. The first restaurants and shopping facilities will be provided on the ground floor of the Eagle Valley building (along with spa, gym, pool and sun terrace). It is designed to appeal to the national, not international, holidaymaker and this limited rental market relies wholly on the national economy’s increasing buoyancy.

While much of Ukraine remains poor, a minute proportion is enjoying new-found wealth, made in industries reclaimed from Russia, such as steel manufacturing. Eagle Valley targets an emerging middle class that earns a moderate amount working in professional sectors, of which IT is the strongest. They can afford to take holidays, but not to stump up for a visa, international flights and Alpine living costs. They are already going on holiday in Slavs’ke, but many have to stay out of town because guesthouse places are hard to come by, with the best booked up two years in advance. With demand for more and better accommodation, the four-star Eagle Valley would be the best place to stay in the area and the only apartments option.

It could be feasible to rent out the property in winter and summer. The Carpathian ski season is November to March, and summer holidays cover June, July and August. High season is December to February, during which the local population reportedly rises from 4,000 to 50,000. The developer claims that a £25,000 studio, if rented out year-round, would refund the initial investment in only four years. There would also be a significant amount of capital appreciation over that time.

Whether or not year-round rentals are realistic is questionable, but the region does have a number of advantages. Such areas of hilly beauty are scarce in Ukraine and the fabulous architecture of Lviv is two hours’ drive away. If all goes to Hanroc’s plan, it will work wonders for unemployment in Slavs’ke. The five-bedroom penthouses on offer at £150,000 indicate the anticipation of relatively big money – much needed in a country still finding its feet.

Details: Erna Low Property 020-7590 1624

Times recommends

• Second homes: credit crunch casualty or money-spinner?
• How I built my own sliding house
• Top 10 incentives for house buyers