As investors earn on cottage towns

15.07.2010 19:47
Growing demand for cottage property has attracted attention to this segment of real estate developers and investors.
In the spring to resume construction in the town near Kiev - Happy Land, Green Hills, "Bezradichi", Dream Land Spa and others. Actively working in the Olіmpіk-Park "," Severynivka "," Maєtku ", Green Wood Club and Riviera Villas. Major companies reconsider the construction of cottages as a way to diversify its business. Even last year, began the erection of a club of the town Green Wood Club (draft financial-industrial group "Olympus"), and recently announced the surrender of the fall of the first 10 houses. "Club town - our first experience building a cottage, - says Alexander Shubin, director of land development FPG" Olympus. "- Finished projects on the capital market a bit, and the demand of the Ukrainians on their own at home is great. So, the value of homes ranging from 250 to 350 sq. m with land and 10 hectare ranges from $ 330 thousand to $ 450 thousand higher than the average market price, yet the 10 homes already sold 7. Usefulness of such investment depends on consumer demand, the restoration of the mortgage and margin of safety for investors.

Looking forward to growth

In the spring of suburban real estate prices have stabilized. "With the IV quarter of last year, we see a trend of price stabilization and the resumption of demand - says Eugene Baranov, a partner at Dragon Asset Management. - I am sure that segment of real estate will recover most rapidly, given the substantial limitations of the proposal and the independence of the majority of buyers on the availability of mortgage lending. " In the construction companies are also optimistic about the market for suburban housing. "Residential real estate has recovered from the crisis and foreign investors is now more attractive than the construction of skyscrapers. For low-rise construction did not cease even during the height of the crisis - says Boris Egiazaryan, CEO of Ajax. - Prices of construction materials are still on last year's level, except for metal. no small fact that the procedure for legalization of objects (houses) for sale to a much clearer, simpler and, more importantly, cheaper than the high-rise buildings, and virtually all land privately owned by partners and not leased from the municipal authorities. "
Attachments are justified only under the condition that the town will house one class, rather than a mix of housing at different levels
The reaction of investors was not long in coming. In the spring of fund investment in Ukrainian real estate Dragon-Ukrainian Properties and Development announced the resumption of investment of $ 12 million in the construction of the village club Riviera Villas. The infrastructure of the town includes marinas, mini-yacht club with a workshop, storage facilities and maintenance ships, two administrative buildings, tennis courts, volleyball court and more. "We invest about $ 12 million in infrastructure development club of the village, by analogy with the best European resorts. It is a product in a segment of real estate, - said Eugene Baranov. - Also interesting is the segment of the suburban real estate business class: we support the investor cottage Green Hills in Odessa direction . The concept of the project involves construction of Ukraine's first North American town with an extensive infrastructure and household size from 100 to 320 sq. m.
While developers generally have to rely on own funds and investments from other sectors of the economy. Entering a large western capital in the Ukrainian countryside construction in the near future is foreseen. Many believe that the market will be a fever for another 5-7 years. This opinion was expressed by Director for Development of real estate development company Stokman Sergei Ovchinnikov in the Raiffeisen Private Wealth Forum-2010. Experts predict that the market is waiting for another whole wave of bankruptcies, mergers and acquisitions.

From making statements to the quality of

Return on investment is today largely depends on whether developers will be able to adapt to the changing demands of customers. The experts unanimously agreed that the buyer is still very demanding and long picks, paying attention to the quality of construction, infrastructure, clear positioning and other factors. "Most towns do not correspond to the positioning of claimed, the developer is trying to cover all categories of buyers, not clearly separating his audience - said Anatoliy Topal, vice president of the regional policy of the Union of Real Estate Specialists of Ukraine (SSNU). - As a result, in the cottage, which is positioned as the elite or business class, a number of townhouse worth over $ 200 thousand and a huge cottage for $ 1 million. "
Until now, the important role played by the distance to the capital. "For Moscow, 150 km - not distance - said Mr. Topal. - There cottage villages - it is a given. In Kiev, people are not accustomed to get home for two hours and impose other requirements completely to the location of housing."
Embedding in the cottage, in his opinion, are justified only under the condition that the developer will clearly position the project and to create quality housing homogeneous type: luxury or affordable homes, and not mix them together in one campus.

The last word in bankers

Most developers recognize that the ultimate recovery of suburban real estate market is possible only in case of renewal of mortgage lending in pre-crisis volumes. According to the company Prostobank Consulting, loans for the purchase of suburban housing is available in about ten banks, the average interest rate - from 24,2% annual in grivna, and credit conditions sufficiently stringent: an initial payment of 40-50%, loan term - no more than 10 years. On the other hand, the unavailability of credit creates pent-up demand. According to key players, the market is not saturated in comparison with Western and Central Europe, Ukraine is much smaller private houses per inhabitant, and professionally managed at all suburban towns and unity. All this creates conditions for the return of the boom of investment in suburban real estate.

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