Cottages and land at Kiev: demand revived after summer

10.09.2009 00:00
Real Estate Market Analysis | Cottages and land at Kiev: demand revived after summer Cottages and land at Kiev continues to become cheaper and sellers make concessions. But since the deal with the developers are in UAH, as the dollar rises, the price reduction is not particularly noticeable.

However, after the summer lull in early September, the demand for suburban market of Kiev began to revive. About this in an exclusive interview LigaBusinessInform said head of residential consulting and sales company "Knigt Frank" Natalia Pronin.
According to her, in the segments of luxury housing and economy class prices for land and houses in the Kiev region in August, virtually unchanged: in the elite segment of the suburban real estate up to the August 2009 average prices declined by 0.28%, reaching $ 2,483 / square. m

Related article: For October sale price of homes near Kiev has decreased on 0,59%

In the economy segment of the rise in average prices over the past months, was replaced by another reduction - to 1.68% at the end of August. Average prices are $ 1160/kv. m
In business class on the eve of the autumn series of developers have revised pricing strategy. In some villages the prices have fallen by 10-25%. In general, it has given the decline in average for the segment at 6.1%. On September 1, 2009 average prices in the segment amounted to $ 1,672 / sq. m


In III quarter. In 2009 during the construction phase is about 40 cottage towns, representing 24% of the country market (including the construction, built towns and frozen projects). These are projects that really are under construction, although at different rates.
Before the crisis in the townships of construction of houses was carried out depending on sales. Right now, most developers changed the approach, and construction is under way as buying houses. And although the pace of construction can be very modest, but frozen, such projects can not be attributed.


After the summer lull, the beginning of September in Kiev suburban market began to revive. Increased number of inquiries and showings. But customers are not in a hurry, carefully choosing real estate. Speculative capital in the country market is now no choice real estate is going for his own residence.
Preferences of potential buyers move from site acquisition to construction contracts to the already constructed houses in towns with functioning utilities. Also, buyers' interest is shifting from large areas of suburban homes to smaller. At the cottage towns business class accounts for the bulk of the requests - this segment combines good quality, relatively affordable price, and most importantly - the optimum size of houses, in contrast to the often excessively large footage in the luxury class.


In view of the fact that buying a country house is secondary, after acquiring an apartment, the impact of the crisis on the country real estate and more evident. But a period of rapid price declines in the suburban segment of Kiev has passed, then we should expect stabilization - the majority of developers will not be significantly lower prices in UAH equivalent.
Until the end of 2009 "Knight Frank" predicts stabilization in the market suburban housing with little correction in the 3-5% depending on the characteristics of residential facilities and financial stability of companies that implement these complexes. To a large extent, this correction is associated with an increase in the dollar.
Today, for homebuyers great opportunity. Today, sellers are willing to go to meet the buyer. If a decision on buying a home and made available there is the necessary amount of money that needs to be negotiated with the developer about possible discounts, installments etc.
Of course you should not expect a tremendous discounts of 30-40%, but at a discount of 10% is safe to count on. As the economic stabilization and increasing market demand, the willingness to go to meet the buyer will be reduced, and the question of discounts will become increasingly less relevant.
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