By the end of the year, land prices could fall by 30%

31.05.2010 12:31
Market volume of sale of land in Ukraine in I quarter has decreased by 25%.
The fall could be more significant because of the double reduction of the cost of land, but it was offset by an increase in one and a half times the amount sold space. By the end of the year prices may fall another 30%, experts say, and note that due to low purchasing power, demand will be basically plots to 0.2 ha with a developed infrastructure.
Office of the market and land evaluation of the State Committee for Land Resources (Goskomzem) reported yesterday that in I quarter has sold 1,11 thousand land and lease rights for them to 238.4 million USD, which is 25,4% less than with the same period last year. This is the first data committee on land market since 2008. They imply that the amount of land sold increased by a half times - up to 1,5 thousand hectares. Increased market was made possible through the fall of half the average cost of the ground - to 157,5 thousand UAH / ha.
Revenues to the state budget from the sale of land and lease rights to them was by 40,2% less than the planned amount - 27.8 million USD, whereas in the I quarter of 2009, fulfilling the plan was estimated at 34,2% (received 28.9 million USD ). The greatest number of sites in January-March, were sold in the Transcarpathian (88), Rivne (82) and Ternopol (77) areas. In Sevastopol, not sold any land. The highest price of land is still in Kiev - UAH 15.32 million ha and Kiev region - 971.48 UAH / ha (see reference). Expensive land may also be purchased in Lviv (872.3 thousand UAH / ha) and Kharkiv (699.8 thousand UAH / ha) areas, the lowest average price of land is fixed in Kirovograd (5,85 UAH / ha) and Lugano (6,36 UAH / ha) areas.
Experts note that the trend is cheaper land will continue. "Reducing the cost of land began in the second half of 2009. This trend will continue, but expect a significant increase in supply is also not worth it, because to sell land at below market price disadvantage to owners", - said President of the Association of real estate experts WIDevelopment Nicholas bug. "The demand will remain stable for small sites, 0,15-0,2 ha, with developed infrastructure. Buy stations without communications system no one will - says the director of the Department of perspective development of the company 'Solidarity' Jaroslav Tsukanov .- With this demand in future market may fall another 30%. "
According to first vice-president of the Union of Realtors of Ukraine Igor Odnopozova, to buy land at low cost will be before the end of 2010. "Usually the demand for land increases in February and March, and the results of these months as a whole define the market conditions before the end of the year - he said .- In the western and southern areas of the value of land will be traditionally higher. This is due to the fact that their residents rather engaged in construction of cottages and farm are more active than in the east, where the population tends to the industrial city.
Maria Tsaturyan
Komersant
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