What awaits the suburban real estate market in the coming years?

26.11.2010 05:55
Real Estate Market Analysis | What awaits the suburban real estate market in the coming years? Rising prices at the suburban real estate market will never rise to pre-crisis level

The main feature, focusing on that, the client takes a positive decision to buy suburban property in the cottage, is the readiness of the project, says Victor Kovalenko, director of consulting company "RealEkspo. In the reducible statistics expert at the portal of country real estate www.zagorodna.com according to Victor Kovalenko, the price situation by region has changed dramatically compared to the beginning of the year. A total database of country real estate portal www.zagorodna.com as of November 10, 2010 has 570 towns, compared with 539 campuses in early 2010. Growth amounted to 31 town. Of the total 177 villages were built and put into operation (31.5%), 228 (40,0%), towns built and 165 (28.94%) villages were under the "project". Of 393 being built or planned towns, in 131 towns, construction of a "frozen", which is 33.33%.. "

Related article: Construction of cottage towns near Kiev slowed down

Victor Kovalenko said that the decline in investment flows have on the market, because today the consumer is difficult to predict successful project. According to the experts among the nearly 150 players active in the market only 30 have sufficient experience. Therefore, projects with a high degree of readiness will be most in demand and quickly implemented. The following projects will be implemented, the degree of preparedness which now stands at 50 to 70%. The rate of growth of prices will be considerably fewer pre-crisis: increase in price will be some ongoing projects, and not the entire country market as a whole. In view of these data for the successful implementation of the project should be in addition to professional teams have high-quality land (environmentally friendly, according to popular destinations, etc.) and the initial capital, which enables the developer to implement the project irrespective of the rate of sales.

The buyer when selecting a real estate object-oriented: the stage of completion of construction, quality of facility, technology, security, including security environment. Client became more deliberate choice to engage experts, "take the money," that is mindlessly pay for the property ceased, even those who have not always thought about why for a particular object is assigned a specific price.

The number of those who are considering buying a house as an investment, to rent it decreased significantly

About 90% of customers are considering purchasing a country house to stay. The number of those who are considering buying a house as an investment, to rent it decreased significantly. This is because the price of real estate does not grow, and the payback period for the lease of approximately 20 years. 80% of the buyers were interested in the cost of utilities, and an overwhelming majority believes that the cost of such services for real estate segments of the elites and business + should not exceed 3,000 hryvnia per month. Victor Kovalenko said the shift in demand for more short-range distances in the new cottage town. Consumer, focusing on the development of technologies that do not want to live in a house built 5-6 years ago. Fell and demand for forest lands: the buyer no longer trust the "lease the forest."

Victor Kovalenko, speaking about the real estate segment of economy class, said that so far the most active area of interest without a contract, or with the cheapest contract. The reason is the lack of money. Carefully evaluated all that the developer offers the buyer no longer pay a premium for what, in principle, available in a few minutes transport.

Victor Kovalenko said that the concept of the elite class is very subjective and determined by different criteria for each player on the market. And it is not identical to the premium in Europe. In Ukraine, the elite class at the suburban real estate market should possess the following qualities: Located on the prestigious and most popular destinations. Typically, the objects of this type are located at a small distance from the cities (20 km zone) and are intended for permanent residence, the presence of water or forests. The area houses adjoining land in the elite class has ranged from 20 to 50 hectare (an average of about 25 hectare). The area houses ranged from 250 to 500 sq ft (about 350 square meters).

Major changes have taken place a premium-class under the influence of the crisis, according to experts, is to reduce the share of projects in a total volume of supply, slowing output, the reorientation of the finished product on the plots without a contract, reducing the cost.

According to Victor Kovalenko, "Statistics Portal www.zagorodna.com, the primacy of Kiev from U.S. $ 2,167 / sq.m (U.S. $ 2,493 / m in January, falling since the beginning of the year is 13.08%), second place in the Crimea from 1840 USD / sq m (2492 $ per sq ft in January, the fall compared with the beginning of the year amounted to 26.17%), and third place in the Mykolayiv region with $ 1500 / m (here the average price affects the cost of 2,000 U.S. $ / sq. m in the elite village "Pine Beach").

In general, market experts predict that a sharp rise in the value of suburban real estate is no longer in sight. Today's consumer preferences may create a budget for the next 2-3 years, but this will increase by no more than 10-15% for selected projects.
Victor Kovalenko
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