New rules for renting housing in Ukraine will raise prices by 30%

14.02.2018 00:30
Real Estate Market Analysis | New rules for renting housing in Ukraine will raise prices by 30% The government is preparing a bill that will take the rental market out of the shadows. Meanwhile, experts assure: after the innovation prices will go up by 30%.  70% of the rental market in the shade

Cabinet prepares a draft law, designed to settle the rental market and take it out of the shadow. This was stated by Deputy Prime Minister Gennady Zubko.

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"Now about 70% of the rental market in Ukraine is in the shadow. We are preparing a law that will allow us to write down the rules in this area: what is a rented dwelling, how should people settle there, get a residence permit, how should they be evicted if they do not comply with the terms of the agreement, "Zubko said.

In addition, he said, the new law should be of interest to developers in terms of construction of rental housing. "Investors will invest in housing construction not for sale, but for rent.

And young families and employees of the budgetary sphere can be provided with such a housing, "Zubko said. In order to interest investors in the bill, provided for state benefits in the construction of rental housing.

"For example, land for construction and further operation of the building is free of charge, the construction customer is exempted from transferring funds for the development of infrastructure. Free will be and joining to engineering networks and other, "- say in the Ministry of Regional Development.

True, the former president of the Association of Real Estate Specialists of Ukraine, Sergei Slydin, considers such a project a populism before the elections. "And what is stopping now to rent housing for the military? The rental market, regulated by legislative acts - the Civil Code, the tax code, the Law "On Entrepreneurship" - allows it, "says Sinister.

Rent will take off

Meanwhile, experts are confident that such innovations will only lead to another increase in the cost of rent. "In fact, the government proposes to build whole residential complexes, whole blocks, which will be on the balance of the developers, and developers will lease these quarters.

But my question arises: if the state does not allocate money for this program, will it work? Hardly, because no developer who is currently working in Kiev, will not go for it because of the huge investment risks. When the developer sells the apartment - he gets, say, 20%. And if he will build it for rent, then the payback period will be about 30 years, "said Sergey Vostok, an analyst with the SV Development consulting agency Sergey Vostok.

He also noted that today 10% of housing is legally with all documents. "And this is real estate, which is rented on a daily basis. That is, in terms of law, this market is not completely regulated. And all because if you rent an apartment "legally", you have to pay a lot of taxes. Now, for example, a tenant pays the renting body and a communal apartment.

And if this law works, then the rental tax will be added to the property tax and income tax. Automatically, an apartment worth 5 thousand UAH turns into 8 thousand UAH, or even more », - explained Kostetsky.

Earlier it was reported how the prices for housing in Kiev in 2018 will change.
Content tags: Housing Market Forecast
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