The earth is steadily growing

07.05.2008 00:00
Real Estate Market Analysis | The earth is steadily growing To date, the land remains one of the most attractive ways of investing money.

If you have a fixed amount of money - 50-100 thousand dollars - and you want to invest in land in the Kiev region, the experts unanimously recommend you to buy plots outside the 30-kilometer zone of Kiev.

Related article: For the week of ground near Lviv reduced to $ 2360 per sq.m.

According to Vitaly Krutsyuka, manager of sales department of "New City", the market is closer to Kiev significantly overheated, prices are too high, resulting in a significant increase in their value is hardly likely. Difficult to buy land in the surrounding areas and from a financial point of view. Cost of one hundred of land in Kiev Svyatoshinsky or Vassilkovskaya area may passes for 10-15 thousand dollars for a hundred, and buying a plot in the 5 hectare makes no sense. "Optimal investment, is to buy a plot of 15 to 30 hectare near the tracks - Odessa, Zhitomir, or Warsaw", - said Vitaly Krutsyuk.

According to marketing director of the company SV Development, Vladimir Stepenko, the most profitable in terms of investment are areas - "outsiders" who are not directly adjacent to Kiev. This Borodyansky, Makarov, Kagarlyksky, Fastovsky and Baryshevsky district of Kiev region. "We forecast that next year their prices will rise from 30 to 50%," - says Stepenko. "In addition, construction of ring road around Kiev is planned at a distance of 20 kilometers from the city. This will not only increase the value of land in remote areas of the region, but also improve transport access to these areas," - said Stanislav Herman, director of the department of land and warehouse real estate consulting company Knight Frank.

Problem Areas

For all the attractiveness of buying land in more remote areas of the Kiev area realtors identify several drawbacks of such investment. First, poor infrastructure, lack of shopping malls, schools, etc. Secondly, the lack of utilities - can connect to pipelines or power grids. Thirdly, the lack of high-quality transport connection.

Thus, when choosing a land buyer must first decide what he will do with him in the future. If he wants to sell it a couple of years, it is more appropriate parcels of land in Baryshevsky, Fastovsky and Kagarlykskom areas, the value of land in which to grow by 57, 50-51, and 43-44% respectively. If a buyer interested in the distant future, the choice is either to stop at Makarovskyy Borodyansky district. It is here now built a large number of major projects cottage towns from 100 to 500 hectares. "After all, there is developing the necessary infrastructure - shops, roads, schools, etc." - says Stepenko. According to the company SV Development, before the end of the year the land here to grow by 25-30%.

Which site to choose?

On the background of high growth rates of land value experts point out that not every site can show a good price dynamics. In the market there is just a huge number of so-called illiquid land that did not rise in price, but cheaper. As an example, you can call the sections in which the opportunity was lost connection to utilities, or those which become more complex fare.

"If a man has no experience of the acquisition of land, then choose a good option is difficult and problematic. At first, people buy and then realize what problems they encountered," - explains Vladimir Stepenko.

More categorical in this respect, the representative of the consulting company "RED" Ilya Rodionov. "An investor who wants to earn money on the ground, should it develop, run communication, making the road. Only then it can bring profits," - said the expert.

To avoid mistakes when selecting the land, experts recommend to gather more information about this plot. First, we must analyze what cottage settlements will be built nearby and choose the closest option. Second, go to the state administration and see if there are any judgments on this site. In addition, there are areas that could potentially be seized - there will, for example, lay a gas pipeline or a road. It is also necessary to gather information about the former owner of the site options, when the land is pledged to the bank.

It is worth noting that analysts recommend that you buy several different small sites (up to 15 hectare) than one large, because in this case, the buyer partially negates the risks associated with buying illiquid land.
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