Impact of the crisis in the market town real estate and cottage townships

01.10.2010 16:40
Impact of the crisis in the market town real estate and cottage townships The financial crisis that began in Ukraine in autumn 2008, as reflected on the economy as a whole, and suburban real estate market in particular.

As experts of the company RealEkspo, the main trends of the period - this uncertainty and stagnation, reduction of project finance and lack of liquidity.

Major Trends (proposal):
· Halt release big budget projects
· Reorientation of suburban real estate market to economy-class projects
· Mass-to-market projects, offering for sale sites without having to contract for construction
· Low quality characteristics of the projects (eg projects without contract and without communications)
· Reduced area houses adjoining land and buildings within the ongoing and planned projects
• Reduced the volume of intra-infrastructure under ongoing and planned projects

Major trends (demand):
· Reorientation of potential buyers of real estate located in the 20-km zone
· Reorientation of potential buyers for properties smaller areas
· Reorientation of potential buyers of real estate less cost
· Implementation of pent-up demand for projects of an economy class
· Growth in demand for plots

During the crisis, has shifted market suburban housing estate - "a seller's market" has become "a buyer's market", which is reflected in the following:
· The Buyer started very cautious in the home buying process
· Buyers do not want to pay money for future asset
• Providing significant discounts
· Legal cost reduction in the price lists

According to the director of consulting company "RealEkspo" Victor Kovalenko, the average price reduction on property values in the cottage of Ukraine during the crisis period (IV quarter of 2008. - IV quarter of 2009.) Accounted for about 60%.

Since 2010, the market cottage real estate Kiev region joined the post-crisis phase of its development. Decline in prices has not stopped yet.

Beginning in September 2010 on the market of cottage townships of Kyiv region has been some recovery. For the first time for the full year market players talked about the upcoming price increases and some of them, whose projects are at advanced stage of readiness, or are the most liquid in the current market conditions, preparing to raise prices.

It is worth noting that conclusive evidence of improvement in the suburban real estate market of Kyiv region is the increase in activity on the part of developers. Despite the fact that the projects, offering to sell land without a contract, continue to go out, there is a tendency to reduce the demand for a similar product. In the current market conditions, most popular among buyers again begin to enjoy the projects, offering to sell finished houses or areas with a mandatory contract for construction.

However, the number of new high-quality projects, within which the developer undertakes to complete its implementation, including public utilities and construction, not so much.

"At the current time we see that the market is alive and beginning to emerge from post-crisis of stagnation. We believe that for potential buyers wishing to purchase real estate in the cottage, it now is the most opportune time. In the stabilization of the economy risks a protracted construction remain in the past. In this case, the price of suburban real estate invetitsionno, attractive and had not yet reached pre-crisis level "- sums up Victor Kovalenko.
Victor Kovalenko
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