The real estate market has completely stopped

24.04.2014 00:00
Real Estate Market Analysis | The real estate market has completely stopped Because of the dollar's decline and instability of the real estate market has completely stopped. Browse ads for sale indicates that the Ukrainian real estate market in the price range a little older .

A year ago, the average cost per square meter in the " secondary housing " in Kiev was 2.1 thousand dollars, and in the primary market - 11.5 ths. Now for one square meter of secondary housing ask 2,3 thousand dollars in new home - 11.8 ths.

Related article: For a year in new apartments in Kiev rose and they became less

However, it is the declared value . Market participants say that the demand for apartments in this year fell sharply , and sellers of apartments without seeing bargains , began to remove their property from sale . " Now the market is . There are no sellers , no real buyers " - sums up the current situation broker Ivan Efimenko .

at the bottom

The second half of 2013 gave a weak real estate market participants hope to revive the industry. Late last year, apartment prices have started to grow slightly . Thus, the average cost per square meter of secondary housing in Kyiv in October 2013 amounted to 2078 dollars, and in late 2013 the price reached in 2131 dollars.

In the primary market was also observed , albeit not as noticeable , but still positive for sellers dynamics : in October 2013 a square meter of the property put up for sale at a price of 11.47 thousand hryvnia , in December - at 11.54 thousand hryvnia .

But as it turned out , the growth of the declared value was provoked aggravation of the political situation in the country. Some wealthy Ukrainians rushed to get rid of real estate. " The average price on the market has grown because at the end of the year put up for sale luxury apartments. Wealthy Ukrainians are trying to sell a property quickly and were well prepared to concede ," - said on condition of anonymity, one of the major realtors real estate agency.

Demand and the number of transactions is not pleased sellers of real estate . Last year sold only 3 % of the apartments more than in 2012.

Recent months the situation has further deteriorated state of the property market. " The political crisis , falling hryvnia rate , the actual stoppage of the financial market , the general social tension - all this has negatively affected both in the secondary and the primary real estate market. In March, we have not entered into any agreement , although this is usually a good month for us " - says Mariana Onopriyenko , owner of a small real estate agency " M -Consult ."

" The dollar is automatically increased the price of the apartment is almost 30% . Some banks suspended their mortgage programs . Also in March the NBU decided to remove the limitation of foreign currency deposits - not more than 15 thousand hryvnia at the current rate per day. To remove approximately 250,000 dollars , it was necessary almost a month every day turn to the bank . So those who could and wanted to buy an apartment , could not do it , "- says Ivan Efimenko .

Discount for the customer

However, despite this situation , the alleged real estate prices are not reduced. Most sellers , waiting for a better time , remove their apartments at auction . Those who intend to sell the apartment now binds cost per square meter to the dollar .

" Incomes of Ukrainians have not grown . Moreover , revenues will decline , projected inflation at 15%, respectively, and apartment price should fall , but we do not observe it . Moreover, sellers of apartments do not want to lose a dollar , and do not want to sell on some fixed rate , they want - the current on the date of the transaction. But how do I calculate the costs ? " - Perplexed businessman Alexander Smirnov, who plans to buy an apartment in Kiev .

Note on the conclusion of an agreement - check all the necessary documents to the apartment , the extract from the housing department and solutions other formalities need at least two weeks . As for this time behave hryvnia ?

" Intransigence only those sellers who are not in a hurry to sell . Those who urgently need to sell your property , actively go out to meet clients . Discount in such cases can reach 20% . However, in a hurry to sell the apartment - the units , and those wishing to buy a two-bedroom studio costs - set " , - says Ivan Efimenko .

There are more serious discounts . Average real price per square meter of apartments in Kiev in February 2014 was on average 29.7% lower than the average stated . More inferior in Shevchenko and Pechersk district - there are achieved 44 % and 38 %, respectively , less likely to agree to concede in Obolon district - the sellers were willing to reduce the price by 0.1%.

According to experts, most of all in a hurry to get rid of those owners who still have outstanding mortgages , taken before the 2008 crisis in the U.S. . At present rate payments on these loans have become unaffordable for them . There are also people who are planning to move or expand living space , but there are very few sellers and the total market statistics are not affected .

Rates and Prospects

However , experts believe that the market is in a stupor will not be long , but to forecast prices can not yet. " Stop the panic , the dollar has stabilized and even then it will be clear where to go residential property prices in the capital - up or down. Interest in apartments is not lost - people call and go to views , traded , but do not buy - they study the market independently . So it was in 2009, when the market crashed , "- says Ivan Efimenko .

Some market participants expect immigrants from Crimea and other regions . " Crimeans interested in buying apartments in Kiev and its satellite towns . Were several calls from residents of Donetsk and region . But this strategic clients to buy property here , they need to sell their apartments at . It takes time ," - says Mariana Onopriyenko .

"Theoretically , increasing dollar property prices have to fall or at least remain the same in local currency. So , at least , was in crisis in 2009 ," - said Alexander Smirnov .

Specialists in the sale of real estate believe that in the coming months if the dollar will remain at this level or continue to rise , housing prices begin to decline .

"The decline will begin with " primary " , which will pull in an apartment on the secondary market . How will drop flat? At least a percentage appreciation of the dollar against the hryvnia , but if the situation deteriorates - increase unemployment, deflation starts , foreign policy problems escalate , rise utilities - apartment can become cheaper twice or even more. anyway , the reason for a rise in price , I can not see - no affordable mortgage or increase incomes, and speculative interest , who asked the dynamics of the market, was lost in 2009 , "- said the lawyer Leo Pascenco .
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