Today Ukraine will sign the first part of the agreement on association with the EU. And though it will only be a political agreement , it will give hope to many sectors of our economy to the gradual stabilization of the situation.
Just a few months ago, experts predicted its real estate market stagnation for another 2-3 years , reducing the potential purchasing power of the order of 5-10 % of the population and, consequently , reducing the cost of housing up to 15% . After the failure at the last moment of the Yanukovych government from signing the documents of the association market in general crestfallen . The main problems of the time called the almost complete lack of competition in connection with the corruption going wild in all key sectors of the economy , and also the pursuit of market players get mega- profits for implementation often substandard product.
Related article: Sharp fall in property prices is not expected
Now the situation is , hopefully, has changed dramatically . "We should understand - says Victor Nesin , - that the market will not change overnight from signing any agreements with the European Union . Especially because it now goes only political agreements. But we have a prospect that European investors are now at least will look in our direction . "
This means that in a sufficiently foreseeable future ( called optimists just a year and a half after the signing of an economic agreement ) domestic real estate market will get a significant boost in the form of call to Ukraine foreign investor. Actually, it is the lack of investment , according to market players, is today one of the major factors hampering the development of the industry.
" In addition to direct investments in real estate (primarily , of course, construction ), which , by the way , we will see a little later , in the autumn of this year, we can expect the first payment receipts under international treaties of Ukraine, and this will mean stabilization and push for economic growth as a whole " , - says the president of the Association of Realtors Sergei Sinister . For Realtors , this will mean the likely emergence of new companies and their employees, who may require , as a minimum, office space and apartments .
Accordingly, all this will affect the formation of the new pricing policy real estate market. Prices will rise . However , experts say that the average man does not follow this fear. " Look at London , New York , and other world capitals - said Nesin . - There's a very expensive real estate ( from 7-15 thousand euros per square meter - approx. Ed.) , And the local population is satisfied, because their own income is also constantly growing. "
But the particular negative consequences for the real estate market by signing the EU Association experts do not predict . Although this industry is very segmented ( office, hotel real estate, housing , etc.) , so it is likely that in some segments may experience some temporary - it emphasize how optimists and their opponents - complexity. For example, the kind that were in the Baltic States after accession to the EU. There's real estate market and, above all , rent first miserably collapsed - people had to give their property on almost 2 euros per square meter. m However, the situation quickly enough not only stabilized, but there has been a significant positive trend , which we can see now.
It is also likely that the affected players , accustomed to " fighting without rules" - Europe as a domestic buyer will not forgive : nobody will buy more low-quality products at inflated prices. Especially it touches the building materials manufacturers and developers . That is actually going to happen kind of " redistribution of the market " : dishonest players will be forced to shut down its operations due to lack of competitiveness , some smaller companies can not really compete with the world coming to market monsters , and they will have to relocate to regional hinterland with subsequent absorption or even liquidation.
But the secondary housing market such problems will likely not be affected , because it is almost independent of external factors. Here during sales transactions do not need to consider the cost of supplies and building materials , the state of housing priced in the first place. In fact, the only secondary market regardless of the currency exchange rate , though , according to experts , and not too much. It is therefore considered that the real estate - the best investment.
Thus , the association with the EU , in fact, the real estate market in Ukraine will bring some long-overdue modernization , it will give impetus to further development and redistribute the forces on the basis of European quality products and services. And if someone does not like it , then most likely , the majority of honest players and end-users will remain a significant benefit.