What will save the real estate market in 2016?

18.01.2016 00:15
Real Estate Market Analysis | What will save the real estate market in 2016? In 2015 the real estate market was characterized by a large volume of primary supply, while reducing sales. High competition projects a fall in demand forced market players to reduce prices and increase advertising budgets. However, it is not save. We must look for additional channels.
 
The increase in supply volume was recorded in Kyiv and Kyiv region, but demand fell in 2015, indicating a decrease in sales volumes.

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Another trend - negative dynamics of the average cost per square meter in Kiev and the Kiev region.

Changes have occurred in the mortgage market: the share of transactions involving credit in 2015 has decreased.

Significantly reduced solvency of the population.

In order to maintain its position in the market today, developers are taking the following measures to stimulate consumer activity:
- The conclusion of new projects to the market at a discount of up to 15%;
- Refusal to raise prices or direct reduction;
- An increase in discounts and promotions programs: if in 2014 the average size of discounts in the mass segment was 3-5%, now - 15%. In the luxury class, discounts reach 20-30%;
- Change kvartirografii projects, reducing the size of apartment sizes (the entry of new projects with apartments ranging from 22-25 sq. M);
- An increase in the advertising budget by 1.5-2 times.

In 2016, there are all prerequisites for further increasing competition. Despite the drop in demand, projects will continue to enter the market.
With such a tough fight for the realization of the client's traditional tools today do not show proper results. In addition to lowering prices and increasing advertising budgets developers need new distribution channels.

Internet advertising market today is saturated with all the specialized portals likewise looking for new tools and technologies to attract and retain potential customers to online-platform.
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Content tags: Housing Market Forecast
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