Apartments in Ukraine will fall in price

12.01.2011 12:18
Real Estate Market Analysis | Apartments in Ukraine will fall in price New - up to 7-8% by the end of 2011, "secondary" - a little each month, dropping as a result of a 1,5-2 times.

Having heard about some changes in housing legislation in 2011, many Ukrainians worried: will decrease if the cost of housing in 2011, and apartment prices start to rise again? Let's try to figure it out by analyzing the main aspects that contribute to the formation of the cost of real estate. First and foremost experts advise to pay attention to changes in the legislation of Ukraine in the sphere of real estate.

Related article: By the end of 2013, housing prices will fall by a third

The main innovations introduced by the Tax Code, signed by the President of Ukraine, 3 December 2010 and came into force on January 1 this year. According to claim 15 st.197 document, along with the operations of the supply of housing (except for operations on the primary's historic supply of housing), from 1 January 2011 are also exempt from taxation on the supply to construction works associated with the construction of affordable housing and housing , which is constructed for public funds. "

Having taken account of this innovation, experts are trying to anticipate further developments in the real estate market.

In particular, the projected chairman of the board of directors of Ukrainian Construction Association "Leo Partskhaladze, the abolition of VAT on building work will reduce the cost of housing at 7-8%. However, this can only happen at the end of 2011, when the objects will be put into operation, built on the new conditions.

The introduction of property tax (from 1 January 2012) did not affect the value of the property, because the fee (according to st.265 p.5) is small for an adequate reaction of market participants - in accordance with paragraph 5 of Art. 265 of the Code, the tax rate of 1-2,7% of the minimum wage, depending on the size of living area. Can not be ignored, and the reaction of consumers wishing to purchase relatively inexpensive housing.

So far, the greatest demand economy-class apartments, sold at "reasonable" price. This trend will likely continue in the future. And when did the cost of apartments in 2011 to decline slightly, to expect the response from consumers who increasingly will buy an apartment.

To what extent, the experts find it difficult to calculate, because the situation depends not only on market conditions and economic situation in general in the country. If, for example, wages will rise, inflation will not exceed the predicted levels, while the state will offer affordable loans, the applicants for housing will truly be more.

The actual activation of developers is also possible, but subject to rapid development of state programs that could revive the property market by the end of the year. In this case, they would create a kind of competition for companies that operate private capital, which in turn would impact on housing prices in the primary market.

Meanwhile, as practice shows, the majority of Ukrainians when buying real estate are turning to realtors who work in the secondary market. Here today and offer a wide enough, and pricing options to suit every taste, and that it is very important for efficiency in the transaction is clearly higher. Price level, "secondary housing" will also be reduced.

This is, in particular, during one of the online discussion the chairman of the National Council of Realtor Chamber of Alexander Bondarenko: "My prediction for 2011 derived from analysis of the overall economic situation, state of the mortgage market and real income. In my opinion, within 10 months of prices in the secondary real estate market will decline by 1,2-1,7% per month. An additional argument for this conclusion is the general state of pricing in the primary real estate market. "

Wait for the fall in prices or proceeding now to the choice of an apartment - you decide, but do not forget about all possible financial default that may arise in Ukraine (the inflation rate jumps in exchange rates, etc.) and trigger a depreciation of the already accumulated "apartment" means.

It is useful to refer to specialists. After buying an apartment - a very important process that requires attention and iron shutter buyer. A search of housing, price analysis, documentation, and so take an incredibly long time, energy and material resources /

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