Kiev housing market faces a collapse in prices

01.02.2018 00:00
Real Estate Market Analysis | Kiev housing market faces a collapse in prices On the supply and demand in the market of primary and secondary real estate in Ukraine, the dynamics of prices, loans, leasing and construction, writes in his review a REGNUM correspondent Andrei Stetsenko. If in the autumn of the last year in the market of Kiev real estate it was possible to choose approximately from 60 000 apartments, now the number of offers has fallen, according to the analyst of the company SV Development Sergey Kostetskiy, to 40 000.

According to the expert, no more than 1000 transactions are made per month, and ARPA Real Estate is confident that it is even inflated figures. In the market of secondary real estate, the process of separation continues, depending on geographical and technical characteristics.

Related article: Land in Kiev could fall in price to a six-year low

In the opinion of Oleg Prikhodko, general director of the development company of Greenol, the cheapest and most expensive housing stock will lose the most in price - their decrease may amount to 25%. The prospect of such a collapse in prices makes investments in secondary real estate in Ukraine a very risky decision. However, experts believe that the collapse will affect only the secondary.

However, with the construction of the situation is difficult: according to the National Bank of Ukraine, housing construction has never been so unprofitable. The cost of construction of 1 square. m of residential real estate in 2017 in Kiev was 12.1 thousand UAH, this year it is projected to grow to 14.3 thousand UAH, and the lower price bracket is at the level of 14.5 thousand UAH.

For the current drop in demand for real estate there are a number of reasons, including, first of all, the availability of live money from citizens. In fact, they can now buy new housing only through the sale of the old one, and they are not in a hurry to take out mortgage loans. Low demand for mortgage lending has become one of the factors in the decline in property prices.

As for the lease, its low price is one of the factors that Kiev leads the rating of the cities of the world for the most budgetary trip in 2018. At the same time for local residents living in Kiev does not seem so cheap, according to ECA International, Kiev is among the ten capitals of Europe with the most expensive real estate and in the top most expensive European cities in terms of the "rental rate".

Earlier it was reported that in 2018 there will be a demand for energy-efficient residential complexes.
Content tags: Housing Market Forecast
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