Will cottage towns or not survive

26.08.2009 00:00
Real Estate Market Analysis | Will cottage towns or not survive  We could talk about stabilizing the market, but the single real transactions in a few "living" towns can not give a true picture of what is happening. The situation is complicated - the market froze, as if to be exact - stiffened. According to the authoritative edition of «Commercial Property» (№ 6 / 2009) in the Kiev region of 100 applications, there are no more than 10 cottage communities that are actually being built. Since the beginning of 2009 was not initiated any new project. Developers, for which the town building is non-core business, selling their projects. Publicly stated by such famous companies as the XXI century and KDD groups.

Experts say that shoppers go to the secondary market. Independent analyst Yaroslav Tsukanov notes: "Already, the" Resale "fully completed homes are worth less than the developers with a rough finish." Indeed, prices in the secondary market subsided considerably more. According to analytical department DK "Europe", in October 2008 on the primary market of falling prices was 30%, and the "Resale" sunk to 40%. In this case the buyer in the secondary market gets completely ready "habitable" home, often after a high-quality repairs.
Companies that are building campuses, offer potential buyers a variety of discounts and payment by installments. And although the proposals installments until the market revived, developers cottage towns are not going to lower prices. "Significant price collapse was observed for those objects, where prices were heavily inflated. As for the cottage towns, where houses are initially offered at market prices, their value in UAH even increased by 6.7% ", - said director of marketing for SV Development Vladimir Stepenko.

Related article: Cottage towns of Lugansk region: growth in all

The situation may seem paradoxical, but according to a senior analyst at Troika Dialog Evgenia Grebenyuk participating real estate market can not lower the price, caught in the minimum level of profitability.
Despite the difficult situation and very low sales, some towns continue to actively build, investing in construction of cottages own funds. In July, DK "Europe" has said that before the end of this year, investing more than $ 10 million in the completion of the first stage of cottage complex" Olympic Park ".
According to project manager "" Олімпік-Park »Ilya Naroditsky in the new market conditions, additional investment of own funds, the only way to develop the project. This will enable to fulfill obligations to existing customers and increase the commercial attractiveness of the town through the sale of completed cottages.
"Demand in the market fell a few times, and the remaining buyers are oriented to the purchase of prefabricated houses have already connected with communications. Autumn, we are preparing to pass the first starting complex of the town, which will be fully autonomous. Deferred demand - a temporary phenomenon and when consumers return to the market, they will choose cottage villages with a high degree of preparedness and infrastructure. But above all they will buy in those towns, which continued to build during the crisis period. And such projects on the market remained unity ", - said Ilia Naroditsky.
Today's hard to say, when consumers return to the market of cottage building. Some experts expect a revival of the market in the fall, when buyers finally convinced that the notorious "bottom" has come, and falling prices ceased.

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