Housing estates are expected to be thrifty

27.10.2010 10:02
Real Estate Market Analysis | Housing estates are expected to be thrifty Area homes reduced, the concept of townships simplified. Future promises to be thrifty.

At the suburban market of Ukraine, as in all real estate markets, the crisis has brought a "cooling off". Many projects have either froze or slowed the development of, or frustrate ambitions. Suburban real estate developers in the way of survival during a crisis and then can be divided into three categories. The first houses erected by their own means. They froze the construction or stretched the pace of construction. "But if sales continued, almost without any discounts. These developers were about 10%, "- says the director of consulting company" RealEkspo "Victor Kovalenko. Typically, this is the most expensive projects where the pace of sales slowest. In a crisis they sold somewhere in the 1-2 objects in the quarter.

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About 20% of developers have built their own means of loans. They are, to the extent necessary, to reduce prices to average. Accordingly, sales were better - about 1 site per month. The third type of developers - those who rely completely on credit. To ensure at least a minimum flow of money and do not go to the dogs, they were forced to sell items at cost or even below. And they have a crisis marked the most active sales - about 3 objects in a month. "Developers who were selling at cost or less, in agreement with the banks to determine the minimum profitability: the bulk of developers working with profitability of 10%. Two other categories have remained on the market and sell completed and villages so as allow them the financial situation", - says Victor Kovalenko.
Victor Kovalenko
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