Market conditions cottage villages in Kiev and Kiev region: Trends and Prospects





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21.10.2009 11:37

We present you the first in Ukraine systematic market research market cottage villages in Kiev and Kiev region, developed marketing department "RealEkspo. The analytical report provides rapid, complete and accurate information about the market of cottage townships. For the first time in a work studied, analyzed and described all the cottage towns, which are located in Kyiv region and in Kyiv, describes all the major market trends and made predictions. Marketing department will be conducting continuous monitoring of the situation on the market, which will supplement the quarterly market research with new information.
During the preparation of market studies cottage villages in Kiev and Kiev region following methods were used: Desk Research (Internet, specialized media, official sites of the cottage towns and developers, etc.), telephone canvassing and monitoring proposals, leaving the field of construction of cottage townships. All sources of information used rescanned, thus include only reliable information.
For the convenience of users, the report is divided into 3 main sections:
Section number 1 allows us to assess the state of the market of cottage townships, get acquainted with the level of demand and supply, the average level of prices, trends and forecasts, to identify the most promising directions for the development of cottage construction. Also in this section provides information on optimal infrastructure cottage towns, architectural style and materials of construction.
Section 2 presents a short number of passport cottage towns Kiev region with the dynamics of prices for 2005-March 2008., And a brief description of the infrastructure of towns.
Section number 3 consists of descriptions of 138 cottage villages in Kiev and Kiev region. For your convenience, all the cottages of the town described by a single standard form. It should be noted that not all cottage town filled with all the rows of standard forms - some owners of small towns deliberately conceal information, some are semi-underground building with hope after the construction of everything instantly to sell, and some of them themselves have not yet determined definitively with any prices, nor the infrastructure . Subsequent updates of the marketing study would provide more complete information, because monitoring of cottage townships will be conducted on an ongoing basis.

Table 1. Form of providing information on the cottage town in the 3-m section of the report:

Features

Description

Distance from Kiev, km

 

Contact

 

 Developer

 

Website

 

 About town

 

 Building area, ha

 

The number of homes, units.

 

 Area homeownership, m

 

The size of the land, hectare

 

Description Nature

 

Description of infrastructure

 

 Description cottage

 

The cost of 1 square meter, U.S.

 

Cost 1 City center, U.S.

 

 Construction Materials

 

 Graphic Materials

 


Logical stage of development is the emergence of megalopolis around it equipped suburban housing which is designed for people with middle and high income.
History cottage construction in Kiev's history began in the mid-1990's. It was then that began to appear around the capital of the first natural cottage villages. With time-of-town construction started to develop rapidly. By that time, a critical mass willing to exchange his apartment in the city property, located near the city limits. An additional impetus to the development of this segment of the real estate served as the economic situation in which the value of a city apartment almost equals the value of a country house. But while life in a cottage village (while they still could not be called towns) was not very comfortable. The reasons are poor infrastructure and high monthly fee for utilities and maintenance services.
But the situation changed. To date, the results of such changes in a draft of cottage townships, which are developed and relatively low-cost areas, which are, moreover, in the picturesque outskirts of Kiev.
As of March 2008 in the Kiev region, there are about 138 cottage townships, which are at different stages of readiness: designed, built and built towns.

Number of cottage villages in Kiev and region
(according to the company "RealEkspo", March 2008)

District

 June 2006

 December
2006

 

 May
2007

 March 2008

 TOTAL

 built

 building

 project

 Kiev

3

5

5

5

4

- --

9

 Boryspil

7

9

10

2

6

2

10

 Borodyansky

1

1

2

2

1

2

5

 Brovarskyi

4

8

10

1

5

6

12

 Vasilkovsky

1

4

6

4

4

- --

8

 Vyshgorodsky

3

5

8

- --

12

1

13

 Kiev Svyatoshinsky

13

20

24

11

10

6

27

 Makarov

5

11

12

4

11

1

16

 Obukhov

19

26

30

19

17

1

37

 Fastovsky

1

1

1

- --

1

- --

1

 

           

 

 TOTAL

57

90

108

 

 

 

138

 
If in June 2006, there were only 57 towns, then by December the number increased by 57,8% (90 towns), but today in 2,4 times (138 towns). The championship is held and Obukhov district, followed by the Kiev-Svyatoshinsky, and the third-Makarov District.
Figure 1. A clearly visible change in the number of cottage villages in 2006-2008. More detailed information on the structure of towns by regions and stages of completion can be found in our market research.
The greatest number of built, under construction and planned cottage villages are located in Obukhov (37 towns) and the Kiev-Svyatoshinskiy areas (27 townships). The smallest number of towns in Fastivske (1 town) and Borodyansky areas (5 towns). The further the district is from Kiev, the less it is built cottage townships.
The most underappreciated until recently, district, Kiev region, in terms of construction of cottage townships, - it Vyshgorodsky, Boryspil and Brovarskyi areas. It Vyshgorodsky district is the second-highest number of built cottage townships (12 pcs.) After the Obukhov area (17 townships). In third place is the Kiev-Svyatoshinsky area (10 townships), the fourth - Boryspil district (6 towns) and the fifth - Brovarskyi region (5 towns). The main advantages Vyshgorodskiy district - the Kiev Sea, Dnieper River, r.Desna, pine forest, and Brovarskiy Borispol - an excellent transportation infrastructure, picturesque nature. Naturally, the most prestigious areas for construction of cottage townships is Obukhov district - a great nature, a lot of water throughout the house and the Kiev elite.
But in the future, the most in demand among consumers will be Kiev Svyatoshinsky, Vyshgorodsky, Boryspil and Brovarskyi areas over time will gain popularity and Makarovsky Borodyansky areas, especially in light of the construction of a new ring road. Obukhov district will develop and continue, but the cottage villages will be located at a distance from Kiev and in the less picturesque places, it is now, which may slightly reduce the popularity of this trend among developers and buyers.
The situation with the distance from the cottage towns of Kiev illustrates figure 2.
61% of cottage townships are located at a distance of 1 to 20 km from the city limits of Kiev. This is the most expensive cottage villages with good transport accessibility. 32% of cottage villages are located at a distance of 21 to 30 km from Kiev - and elite cottage villages (which are located in places with unique nature), and cottage villages are targeted to middle and business class. At a distance of 30 km rather risky to build a cottage small towns - a great distance now can scare off potential buyers. Therefore, to attract them, need to use different "chips" that can make a cottage town special, exclusive and popular.
One of the main trend of the market of cottage building of the Kiev region is the rapid increase in the prices of houses and land under them. Market Structure cottage villages at a cost of 1 sq.m of housing in 2008 is shown in Figure 3, and in 2006 (for comparison) in Figure 4.
The closer the cottage community is located in Kiev, the more picturesque nature, the greater the cost of 1 square. m. 18% of cottage townships cost of 1 sq. m of total area of the house is from 3000 to $ 32% of the proposals - the so-called "economy class" - is the cost of 1 square meter within the 1000-1500 United States dollars (only 1 cottage community offers homes at a price below $ 1000 per sq ft). Business class from $ 1 m from 1501 to 3000 U.S. dollars is 50% of the market offers. In the future, should increase the share of cottage townships economy class and significantly tightened the competition in the segment of the business class.

Cost of 1 sq. m area in the cottage towns of the Kiev region, cu
(according to the company "RealEkspo", March 2008)

 District

Distance, km

 December-2006

 May-2007

 March 2008

Kiev


5000

6000 

2700-7000

 Boryspil

14-32 

1320-2100

1300-3000 

1400-3100 

Borodyansky

18-30 



1300-1800

 Brovarskyi

10-40 

500-1000 

1000-1300 

1100-1640 

Vasilkovsky

10-26 

630 

1000-1500 

1200-2500 

Vyshgorodsky

10-37 

900-1100 

1000-1500 

1200-2800

 Kiev Svyatoshinsky

1-30

900-1400 

800-2500 

1100-3800

Makarov

17-40

530-900 

600-1500 

1000-1900 

Obukhov

7-32

1200-2600

1000-3000 

1400 -5000 

Fastovsky

55 

665

750

1400

From the data in Table obvious conclusion that the most expensive is 1 square meter of property in the area of Obukhov (1400-5000 cu / m), the second highest-Kiev-Svyatoshinsky (1100-3800 cu / m ) and Borispolsky areas (1400-3100 cu / m), the third largest share Vyshgorodsky (1200-2800 cu / m) Vasilkovsky (1200-2500 cu / m)
Today, the average cost of 1 square meter cottage in the Kyiv region is 1,621 dollars. In the long term expected average annual growth of prices for houses in the villages will be no more than 15%, ie according to our forecasts will reach the end of the year 1783 dol. / m
From the presented diagrams clearly show that in early 2008 compared with 2006, the share price range of $ 500-1500 per sq decreased by 20%, while at the same time, the proportion of detached houses worth over 3000 dollars for m increased by 14%. At the same time increased and the "average" and "business" category from 44% to 50% (1501-3000 U.S. dollars per sq m). The figures clearly illustrates that the market prices will increase in future. Among the proposals are very much cottage townships, which focuses on business-class, which is significantly tighten the competition in this market segment, while the middle class is not actually involved in the market of cottage townships.
To date, the market of cottage building at an early stage of development, which is stimulated by, firstly, the desire of the population live in nature in a comfortable environment, and secondly, the lack of a metropolitan area of land for such construction. In addition to the growth opportunities of the population, an additional impetus to the development of this segment of the real estate served as the economic situation in which the average cost per square meter of built cottage communities is on par with the average cost per square meter of apartments in Kiev.
Deterrents of this type of construction are "gaps" in domestic legislation, banking system credit, lack of communications in the areas of proposed construction, etc.
The leaders of this sector - large companies that are in the top twenty Ukrainian developers and engaged in building residential and office buildings, shopping and entertainment complexes - at the expense of cottage construction expanded the scope of its activities.
If two or three years ago, but the domestic consumer desires for the comfort of the interior layout were not yet formed any unified requirements for the cottages, but now it is safe to say the claims of the customer to the quality and diversity of infrastructure suburban village. Unequivocal interest are projects of residential complexes with security and service, supermarkets, preschools and schools, medical center. The presence of the pool, sports complex, a restaurant assumes a comfortable leisure, is an added plus. It is believed that the ideal infrastructure - is a collection of objects, allowing residents did not leave its limits. Naturally, modern cottage accommodation is impossible without a complete set of utilities that provide water supply, electricity, gas and telephone, Internet, satellite television.
And if for a class of cottages the norm availability fireplace, attic, open terrace, parking lot, then another - sauna, wine cellar, etc.
Also, most potential buyers want to see some "sparkle" in the external design of their future home or to choose among the various projects.
In the cottage villages near Kiev, the above full service and communication are not in the full spectrum. For comparison: the construction companies more developed Russian and Baltic areas in residential complexes, infrastructure, seeking to diversify their campuses such objects as a yacht club, a sports complex and a botanical garden.
If the European market for real estate construction begins with marketing research in consumer demand for houses of a certain type, an interesting development, the original project and the choice of land, at the Ukrainian - with the purchase of an investor of affordable land, and the calculation of income from the sale of future square meters.
The most popular are houses in the small towns of the area from 150 to 250 square meters. m. These are the areas attracting the middle class market.
In the long term expected average annual growth of prices for cottage real estate will not exceed 15%. Curb the prices will be consuming capacity of the population, which has not always kept pace with the dynamics of growth of prices for houses.
According to the forecasts of most experts, the future of cottage real estate market will be for residential houses valued up to $ 250-300 thousand dollars, that is, for the cottage, which is able to get the middle class.
Among the building materials for construction of cottages, despite the high price, the first place surely is a brick. This material is the most familiar to buyers of the cottages.
Increasing attention is to attach the infrastructure necessary for healthy living in the cottage town.
According to the experts, c given the value of land, a country cottage today - one of the most lucrative investments, provided that the house was built by the construction company licensed in accordance with the approved project with all the necessary official papers.

CONCLUSION

Until recently, the market experienced its infancy, during which the demand far exceeded supply, and companies, developing cottage projects, successfully engaged in "removing the cream. This was evidenced by the fact that most of the small cottage communities sold out with almost no advertising, resulting in the lack of a unified and generally accepted classification of cottage townships. But it should be noted that the market has changed dramatically. Effective demand fell slightly, while the number of declared and implemented by towns has increased significantly. Thus, buyers in their choice became much more demanding, when buying a country house, in consequence, the dynamics of sales in towns without a developed concept significantly decreased. And this trend will continue in the future.
Based on the potential market size can predict the complete saturation of the market by 2012, subject to the stated terms of commissioning, that based on the real situation is unlikely.
Director of the company "RealEkspo" Victor Kovalenko
www.zagorodna.com

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