According to experts winter 2010-2011 will be a dead season for selling real estate in Ukraine. And by the end of February is expected gradual decline in prices as the purchase of housing and land, and on their rent.
Presumably the cost of real estate will decline by early 2011 to 15%, and by the summer of 2011 by 22%. Already, analysts have noted a decline in property prices by about 7%. With what is it connected to reality?
According to the president of the Union of Real Estate Specialists of Ukraine Alexander Rubanova, low purchasing power makes real estate sellers to make enough concessions to big real buyers to somehow sell their property. According to forecasts A. Rubanova average price for a studio apartment in Kiev in early spring 2011 will be 30 000 - 35 000 dollars.
In the first place to reduce the cost per square meter of real estate developers are forced to. This is due to the fact that the primary property market enjoyed a slight demand among the population. The developer is increasingly a need to "freeze" the construction, due to lack of funds for construction. Therefore, the natural reaction of developers is to reduce prices to attract potential buyers. Reduced prices and attract a buyer gives the builder a chance to quickly finish the construction.
But reducing the cost of primary real estate does not have such an impact on the overall situation in the purchase and sale of housing as a secondary real estate market. Here there are problems that affect the formation of prices. And the main problem - is, of course, low purchasing power of the population of Ukraine. World financial crisis played a decisive role in this.
Most of the population faced with the problem of loss of work, as well as their savings. Even those who did not remain without work, seen a significant decline in income and living standards, respectively. And if many before the crisis could count on buying a home, most of these people today do not even hope to buy a property in the near future.
There is another segment of the population, which has the ability to buy property, but fears a new wave of crisis, so no hurry to lay out "real" money to purchase houses.
However, the most basic reason for failure to purchase real estate people are the problems with mortgage lending. With the onset of crisis, banks are very cautious about lending and mortgages.
Not so long ago seem to be affordable loans today something unreal. Crazy percent, to 25% per annum, the need for a substantial down payment enough - 25-40%, and in some cases, registration of another property as collateral - all current banking realities that compel people to simply abandon the possibility of acquisition of housing by mortgage lending .
It is worth noting that problems with purchasing power in the country made its mark on investors from abroad. Tracking trends in the real estate market in Ukraine, foreign investors are also in no hurry to invest in the Ukrainian real estate.