The land market can reach the bottom of the fall

25.08.2009 00:00
Real Estate Market Analysis | The land market can reach the bottom of the fall After ten months of falling land prices in the Kiev region began to grow - in July of land holdings grew by 0.13%. However, experts do not believe that this price increase indicates the beginning of recovery of real estate market.

According to analyst company SV Development Sergei Kostetskii price increase in July due to the fact that many owners have rented their lands from sale. They are counting on the fact that the land market in September may perk up. Therefore, the databases of Realtors were only the most expensive proposals, reports analysts said the newspaper "Delo".
Despite the fact that the demand for land in the summer continues to fall, sales transactions still are. But if last year of such transactions were more than 1000 a month, now, at best, 300. Therefore, the sale of expensive areas affected by the statistics, giving the appearance of average market prices.

Related article: For a month the land near Kharkov rose 0.37% ($ 7) to $ 1,874 per sq.m.

According to experts, most of all cheaper areas not suitable for building - without a developed infrastructure and communications. Reduced prices are also dependent on the size of the area - the smaller the area to sell the land, the higher the cost of one hundred.
With regard to restoration of the land market, the experts make predictions with caution. According to Sergei Kostetskii, the maximum reduction in land prices can be expected this autumn, but the market does not recover before the middle of 2010.
"In September and October, we expect that there will come the so-called bottom of the market. Until the middle of next year prices will be stable, although there might be a price correction: minus 5.1% per month" - said the expert.
As reported last week (from 10 to 16 August) the land price in the Kiev region, decreased by 0.05% ($ 2). At the same time the most expensive plots of land remain in Kiev Svyatoshinsky area, and the cheapest - in Pereyaslav-Khmelnytsky.
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