Real estate in Ukraine is becoming a record low

20.02.2018 00:00
Real Estate Market Analysis | Real estate in Ukraine is becoming a record low The cost of housing in Ukraine is declining, and has already approached a critically low level. This was reported by the National Bank of Ukraine in the December "Report on Financial Stability". The document also noted that some construction companies sell square meters at almost the cost price.

The offers of apartments continue to grow at high rates. This is connected with the massive construction of new facilities, and with sales in the secondary market. It turned out that many apartment owners, because of the growth of communal tariffs, sell housing, so that it does not stand idle.

Related article: The real estate market in Kiev demand two-bedroom apartments

That is, if the apartment does not manage to be rented, the owners are trying to get rid of this "cargo". In this case, buyers for real estate is not so much. Ukrainians are in no hurry to take loans in banks. So, for 2017 they took only 965 million hryvnia for the purchase of housing.

But at the same time, according to experts, the need for real estate remains high, and builders have to go to the trick to lure customers. One of the favorite ways is to reduce the footage, for example, selling so-called smart apartments with an area of ​​15-20 square meters. At present, 53% of the housing being built is one-room apartments.

The situation in the market for the construction of new housing is "difficult to sustain." According to the analyst of the marketing department of SV Development Sergey Kostetskiy, 2015 was the worst year in the history of Ukraine's independence in terms of market behavior and the number of transactions. And since then nothing has changed globally.

Despite the fact that the very number of transactions over the next two years has grown, their amount has decreased. If before the profitability of the builder was about 20%, now it's time to go to it - we must try very hard, builders survive on the verge of balancing.

Ukrainians tend to buy in the primary market, they lose confidence in it and return to the secondary. According to Sergey Kostetskiy, the "pyramid" still remains a repulsive factor in the primary housing market.

Secondary market last year experienced a smooth and gradual decline in prices in dollar terms. In principle, potential buyers have not disappeared, but they were usually not ready to take quick final decisions and waited for a decline in property prices.

This year the trend will continue in most cases. Although it should be noted that the secondary real estate market is very heterogeneous in terms of housing quality (premium segment, standard, Khrushchev, 80s, etc.). And each of these segments will respond to the challenges of 2018 in its own way.

Earlier it was reported that in 2017 in Kiev sold a record number of apartments over the past 10 years.
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