Cpekulyanty brought down the property market

28.09.2010 18:52
Speculators blamed for what they brought down the property market. But they also led the industry continues to evolve

For the third year as the housing market in Ukraine has ceased to exist. The country has stopped a lot of construction projects - and that dozens or even millions of square meters. But the people in that time have not diminished, birth rates have fallen slightly. And anyway, life is going: someone children married someone grandchildren have grown up, many simply want to improve their housing conditions. Demand is and will be, but if the market crisis will last at least another year, apartments at all is not enough.

Pre-crisis boom in the real estate market has led to what became engaged in the construction of even those who only yesterday traded sausage or sandals. You meet people who ask: "How are you doing?" In response to hear: "I have already engaged in real estate." But when the market fell amateurs, greatly affected the quality of construction. Economy strong enough to earn more. And earnings at times reached 100%.

That is, any person having any connection, and the money could get a piece of land. Prior to 2002, in Kharkov, for example, the land was worth almost nothing. Even then, when the boom and weave requested 30 thousand dollars, a loss no one remained. It seems crazy money. But at 10 hundred parts, and it is already 300 thousand dollars, a house is built in 10 floors of 10 thousand square meters. If you scatter these 300 thousand in all, then on each square meter will be added only 20-30 dollars. And the cost of construction was 50%, while someone and 40% of the price at which they sold new construction.

Meanwhile, for the development of market speculation - it is good. It creates a demand. For example, I have built 100 apartments for 100 people. Speculators have bought 50 apartments and 50 wishing to housing is not enough. That is to build more. It reached, however, is funny. In a high-rise, that elevates my company, one person bought 50 or 60 apartments out of 120. We learned about this once, since the sales office, he sent various people. Came grandparents were traded for every 20 dollars we give them concessions, reduced prices. And then it turned out that this is all bought one man - speculator. But when speculators stopped buying, building market froze.

Of course, pleased that the market has already passed the bottom and prices since not very grown up. Nevertheless apartments remain inaccessible. No credit. But once back loans, come on the market again by those who overheated and collapsed, ie, speculators. But once back loans, come on the market again by those who overheated and collapsed, ie, speculators. And then on the current prices can be forgotten. They will grow, though not as much as before the crisis. In Kiev, in general, came to the idiocy: 18-20 thousand dollars per square meter. But the cost of homes in Kiev, Kharkiv and Cherkasy that is almost identical. In the capital, unless the land is worth more.

The only thing that can stop the speculators - for them may not have apartments. For three years waiting in the construction industry and stop the real estate market emerged a huge potential demand for housing. Satisfy him when he comes back lending, will be very difficult. And the most sought-after and scarce housing will be economy class, which was built before the crisis is not very happy. Here in Kharkiv, even in prestigious areas were the houses where the square meter cost is only slightly cheaper than in the center.

Alexander Davtyan, president of LLC "Investment Group" DBP "
fokus.ua
Content tags: Property
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