Demand for suburban real estate: activation or decline?

19.11.2010 11:36
Real Estate Market Analysis | Demand for suburban real estate: activation or decline? 1. Can we talk about enhancing the demand for holiday homes? In what ways today often purchased rural property? In what price range?

2. How much can you earn a self-construction and selling a home? Are there any demand for such houses? How easy is it to find buyers?

Related article: Townhouses gaining popularity

Ready to buy a house soon
Vladislav Bondarenko
Specialist real estate company GEOS Real Estate

1. Autumn trend shows a resumption of buying activity at the suburban real estate market segment of "elites." In the lower categories, there is moderate demand, but consumers are in no hurry to buy, despite knowledge that the average market prices are fairly balanced.
In particular, many buyers are waiting for the resumption of lending. With regard to the location of houses, then, as always, the popular elite Obukhov, and
also more affordable and Odessa Boryspil direction.

2. To make the construction of private cottages, you need to clearly understand the market trends. And although construction of the house combines many factors, a balanced approach to the choice of direction, land, and construction technology will form the price of the object and calculate future profits.

With regard to the demand for such homes, the buyer in the market is always there. At the same time, it is based on existing conditions and opportunities, is trying to optimize their costs when buying property. Therefore, the seller must create a product for sale which will be fast, namely: fully ready to stay home with the documentation, the relevant legal regulations.

Build a house for sale in unprofitable
Eugene Chernetsky,
Director of Investment and Construction Company "Contact-Invest"

1. In the Kiev region today there are about 260 cottage settlements. Of these, about 35% are in the planning stage, about 33% during construction and about 32% of the partially built. In this fully completed and ready for sale just 10% of the total households.
With regard to frozen settlements, by comparison with I quarter of 2010 their number increased by 8%. Nevertheless, the proposal on the country market Kiev area has increased by 5-10 towns. This increase was primarily due to co-operatives, where there are undeveloped areas and proposes options for the separate sale of land or land with a construction contract.

If we talk about the demand for country houses, in August-September this year, it increased slightly. The main reasons are: a seasonal surge in buying activity, falling prices for existing home ownership, discounts and special conditions for potential clients, as well as the entry of land in the cooperatives with the possibility of self-selection of a contractor.

Areas attractive to buyers, today (like always) remain loyal and prestigious Obukhov price Zhitomir.
Desired purchase price varies between $ 900-1300 per square meter. m, and the underlying demand for homeownership have cost $ 100 000-150 000.

2. Despite the reduction in the cost of construction, erection of homes for sale by a private individual is unlikely to bring more than 10-15% of revenue. An investor should learn the ropes on the market: when choosing a plot to take into account the existence of the necessary infrastructure to carry out works to attract specialized professional construction company, as well as provide for the costs of advertising and promotion of the object. Building a house of 125 square meters. m today would cost $ 600 per square. m, that is $ 75,000 per household. This is still necessary to add the cost of land in the 10-15 hectare - about $ 35,000.
Connect Communications, commissioning, obtaining permits will cost $ 15,000. On the landscaping will have to spend about $ 7000 and $ 3500 will be spent on advertising. As a result, the cost of home ownership will be $ 135,500. At a price of $ 1200 per square meter, a cottage will cost $ 150,000. That is the difference in the implementation - $ 14,500, given the fact that the cycle of construction and commissioning in the 9-month period, return on investment is not less than 12 months.
The above calculations show that the construction of houses can be quite cost-effective only in complex (scale) and efficient construction. In addition, the company implements major project receives additional 20-30% due to discounts on materials and save on construction costs.

With regard to the demand for self-erected houses, the buyers are, but to attract them will require considerable funds. Depending on the location of the cottage, its price, availability of infrastructure, the period of promotion and sale of the object is 7.2 months.

Holiday-class "economy" has not yet built
Artem Novikov, managing partner of consulting company "Dialog Classic

1. Revitalization in the suburban real estate market has traditionally manifested itself since the beginning of the spring-summer season, so the number of hits increased.
Increasing the number of transactions, perhaps it will be possible to make predictions only for those objects where there is a partially or fully completed a home ownership: it is in relation to such proposals has intensified interest in buyers.
If we talk about geographical preferences of consumers, it has traditionally claimed the right direction of the coast, in particular Novoobuhovskaya, Odesa, Zhytomyr highway.

In general, the demand has intensified in the towns business and the premium segment. On the demand for objects that match the criteria of economy class, while difficult to speak, as such, de facto, not yet built. There was no market towns with a significant number of cottages, whose value is comparable to the price of a three-room apartment in a residential area of the capital. With regard to specific towns, it is worth noting "Severynivka", "Sun Valley", "Mayetok. Although various categories of settlements is, however, each successful in its segment: the buyer has an understanding for the completion of any stage of the project.
As for the other boroughs, despite all the marketing tools developers, to the buyer the most important is the ratio of "readiness, price and quality. In this case, no one wants to invest in projects that will long be terminated in connection with the crises.

2. Earnings builder in the construction of a cottage for sale today is dependent on the quality of the house, its location, the cost of building materials and other factors. But should immediately note that the buyer at such an object is very difficult to find. Also, please note that individual home - rather, it is housing economy, or at best business class. Such a property in pre-crisis times, usually acquired through mortgage lending, and now it is for customers in seven locks.

Is it easy to find a buyer?
Anna Usinas,
Head of market research company Mark Braus

1. Demand for ready-made town houses have not yet activated. Each month, we are seeing price declines, and this - the best indicator.

2. Buyers in country houses have always. Simply their number is reduced in difficult times so much that develop large-scale projects is extremely difficult. But for private investors always remain!

Most of the houses offered for sale today are worth more than $ 1000 per sqm. m, at a cost of construction of $ 400-600 per square. m (site). Therefore, most want to have a house they want to build it themselves. For some reason, developers of suburban housing at one time it seemed that the Ukrainians are so lazy and wasteful, that agree to pay double the price. Probably confused Kiev and Moscow. As a consequence, the number of sold plots (before the crisis, and currently) ten times the number sold prefabricated houses. Of course, making the construction and sale of houses can and should be
at all times. The recipe is simple. We must not slander boxes for sale in the open field, and offer customers "the house of his dreams" in a good location.

Of course, to make a "dream", it is necessary to know what people are dreaming. How easy is it to find buyers? I think that now in Ukraine difficult to find a property that meets all the requirements. In this case, to say in advance how much you can earn on the construction and sale of his house, it is impossible. But it is well known, from which it will develop this income. Appreciation of the site due to the development environment for the construction period of the award, which the buyer pays for the "house of their dreams" and is only slightly from the charges for construction management and the difference when the market price.
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