How will the cottage building?

02.05.2011 17:05
Articles about real estate | How will the cottage building? CEO Vladimir Limak Dream House - how will develop post-crisis construction of cottages which areas and types of households are most in demand

The real estate market is moving away from crisis shock of 2008, which stretched over several years. In some large cities has intensified construction of the unfinished high-rise, an increasing number of transactions on the secondary market. However, the downward trend in prices persists, indicating low demand.

Related article: Country Cottage: pros, cons and possibilities.

In this market of cottage building, apparently survived at least a deep crisis. It has already become apparent that many were created before 2008 projects - stillborn, and the skeletons of houses away from large cities will long be an eyesore. The tendencies of suburban real estate market "expert" asked by Vladimir Limakova, CEO of Dream House. The choice companion due to the fact that the company not only has experience in planning and development of cottage townships, but also owns a factory for the production of domokomplektov Canadian technology, and its director has a clear vision, which is the market.

- Has the crisis on the basis of classification of suburban housing?


- In my opinion, now there are four price categories of building suburban housing. "Economy" - the cost of home ownership to 100 thousand dollars, "Economy Plus" - from 100 to 200 thousand dollars, "Business" - from 200 to 400 thousand; "Premium" - from 800 thousand dollars.

Today I see the greatest potential in the category "Economy Plus" and the bottom segment of the "Business", as they have the opportunity to create a satisfying customer's product, which allows the developer to earn a minimal profit. By the way, here, in my opinion, is a quality alternative to the apartment in the city. For the same price to get more area homes and land in the bargain.

The most numerous segment of "Economy" - very promising, but it is complicated due to the fact that customer expectations for quality not usually coincide with the cost of the product. Premium segment - my favorite, but there will never be mass. This - the creation and sale of dreams, rather than square meters.

- It turns out each of the four projects, which implements the Dream House, is in its category. For example, if you decided to build a fifth village, it would be today?

- For many people, is not only important category of the settlement, but also the direction. Customers are increasingly paying attention to how much time is spent on the road to the city center. If we, for example, the village economy-is Pilipovich in Warsaw's direction, that person interested novoobuhovskim direction, this settlement will not work. Besides townsman, who live comfortably on the gums as he works on the left bank, the settlement also will not work. For sales success, it is important that there is a menu of products of different quality in different directions. For example, in Vyshgorod direction we have a project Riviera in the premium class, but we see there is potential for high quality holiday village next generation.

We are working on housing estates new generation of Zhytomyr highway in Brovarskom and Vyshgorod areas, as well as over the settlement of business-class Theophany.

- You can call parts of the Kiev region, which consider promising in terms of potential growth rates?


- I have already named Vyshgorod direction. There are many successful people living in Podil and Obolon. With the advent of the new Havana Bridge, which connects the hem and Obolon reconstruction departure from Kiev in this direction, an extension of the roadway on the dam of the Kiev hydroelectric transport interchange has improved considerably. The result left many of the problems that bothered before. Vyshgorod direction gives the opportunity to develop premium and ekonomproekty by beautiful natural environment. While there is small selection of cottage townships, but the lack of available land.

Brovarske direction, in my opinion, has a good prospect for mass housing economy class. Historically Troyeshchyna, Forest area associated with budget accommodation. By the way, we have a project near the gums, which may come to market next year.

And, of course, a good direction for the development of building the middle class - Odessa, which is among the right-bank trips from Kiev, obviously lagged behind in development from Concha Zaspa and Zhytomyr direction.

- What is something you go around doing the Concha Zaspa and overall direction of the Dnepropetrovsk ...

- Along the highway novoobuhovskogo Obukhov and there is still room for projects. There certainly is good public transport links, lots of restaurants and entertainment, magnificent nature. But most good sites overestimated that makes it impossible to create a product at the right price. By the way, had secured rights is not interested in a house in any location other than the Concha Zaspa. We even gave a discount on Vyshgorod direction by 20 percent if the customer brought us to the argument Concha Zaspa. Now, do not give.

- During the pricing race in 2006-2008, many developers were willing to go abroad in 50 kilometers from Kyiv to give affluent customers relatively low cost home ownership and a relatively large area. What is the limiting radius of today?


- We have a draft settlement Pylypovychi, which is located 35 kilometers from Kiev. It's already on the brink. We went there because they realize: this is an extreme point to which people are willing to move from the capital. In addition, there can be accessed both from Warsaw, and from Zhitomir highway, and with the Kiev railway station by train - half an hour.

I know that some companies have large land portfolio of 45-50 kilometers from the capital, but the prospects here in the next few years do not see.

- You mentioned the most in demand in the price range of 100-200 thousand dollars. And what with the demands put forward people to the site?

- If you had all the more interested in areas of 20-30 acres, then the median is now down to six to ten hectare. This is so that people understand: to the section in the 30 hectare was a beauty, will have to invest a lot of money and effort. For example, to have a gardener. A six to ten hundred parts do not. Not for nothing, probably, in Soviet times, cut six acres, which is enough for a small garden and ogorodika. Now much more important than the area of ??your site, and what surrounds it, the natural conditions and social infrastructure.

- First, we have valued settlements with solid fences between neighbors on the principle of "my house - my fortress." Then the three-meter fences were found predominantly only on the perimeter of cottage settlements. And inside the open space has been popular and fairly conventional distinction between the neighboring sites. Now the demand for that?

"Aspect offers a little - only about 20 percent of cottage settlements. So many boxes, collected in the period 2006-2008, the price race, will long to wait for their customers "

- Traveling around the world, people saw how to live, and began to appreciate the idea which lies at the heart of the village. His single appearance allows them to feel that they are within the organized process of life. Residents should be comfortable communicating with their neighbors, especially since it is usually people of the same financial position, separating similar values. That the client was willing to part with money from the settlement was to be attractive. Now driveways and public areas can not be done poorly and the customer can buy a quality home ownership.

- And in Pilipovich did so?


- This project is economy class. We specifically picked a place where the infrastructure was already there. There is a minimal set of basic things - security, a fence that blends into the landscape, road, land improvement, lighting. For all other customers are economy-especially not willing to pay. But beside the village is a school, shop, railway station. That is the infrastructure there, while the family lived in an inexpensive and beautiful house.

- Before the crisis, the impression that the intermediaries in this market weight: the vendor, developer, builder, lots of contractors. This chain is now reduced?

- Margin for all now no. Now there's a market for a maximum of two participants, and sometimes only one. There are people who own the land and there are companies that build and sell. If you insert between the developer, is not enough margin, someone is interested, or the product becomes expensive. The builder becomes a construction company, a developer, which makes a complete cycle. Right now, working with landowners, we do not really sell a house, but the idea - how to sell their land as the land converted into money.

- So we're going to consolidate within a single project. And what is today the land: the commodity, a means of accumulation, something else?


- Up to 70 percent of the land considerably lost in value and are non-liquid goods. That is, they are not interested at any price, because the business they do not. About 20 percent of the land to keep the cost and only ten percent of the land became more expensive.

- What is it for ten percent of these?


- This unique sites, the location of which is associated with the development of some projects. If we are talking about the suburban real estate, then here it is very important to have communications, roads, forests, water and raisins. That is now the man who wants to buy an expensive area, is ready to pay for this money, but he has very high standards. One can not just sell a good portion expensive.

When we started to build their cottage settlements, have realized that a quality product - in terms of ideology, the project master plan, integrated building suburban property - no one in Ukraine. Previously, most of the country building projects were enthusiastically in love with your site owner who first build something yourself, then friends, then decided that it should appeal across the market. There was no systematic approach, the product of a construction company.

Company Dream House first suggested carefully thought-out approach with a focus on quality, attractive architecture, speed and scale construction. Almost all the projects of buildings can be found in nature, our show-houses allow the buyer to see the interior up to the last detail: in the bath robes and toys in the nursery. Although the idea is not new, but in Ukraine, this was not. Usually all at the paper project - give money, and we will then you can build a house.

In Canada, the company is also the developer and builder, it invests its own funds in infrastructure and build not just a show-house, and the whole show-street.

- You have repeatedly stated that since 2008, buyers of cottages in Ukraine is not guided by the price per square meter for home ownership, and the final cost of the finished cottage with land. Is this not an attempt to hide the inevitable price drop cottage construction cost of less than one thousand dollars per square including land?

- This is only possible ekonomsegmente. If you go lower, the quality of the product that you got, cause to regret it after a few months. We know these projects - there are problems with the foundation, walls, ceilings, electricity, water and so on. Even the house after putting into operation required a lot of investment in repairs. Over the past year the cost of construction materials has risen by 10-12 percent, about ten per cent increase in wages. So expect high-quality new houses will be cheaper, not worth it.

- How many houses are now sold on credit?


- While that little shopping for borrowed funds - less than ten percent. This primarily occurs because of high rates and banks' requirements. If we talk about the premium class, we have never had buyers who took out a loan to buy such houses.

Before the crisis, cottages percent of the forty were sold on credit. In the market town of mortgage, if I remember correctly, the rate was higher.

- And who buys? Credit is not advantageous, few households earn five thousand dollars a month to accumulate within a reasonable time for suburban housing. You rely on the very rich or those who dare to sell the town house? But there still have additional expenses for the car on petrol - you ought to go to work and child in the school led ...

- Yes, the family usually has to be some kind of historically inherited property you can sell. There is also the accumulated money - think of how many deposits taken from banks in 2008 by buying the currency. And only on the remaining amount customers are willing to borrow. If we talk about the massive demand, but now I see it on the cottages, facing up to 100 thousand dollars. But he will gradually grow.

- Yes, but offers mass. In the Kyiv region faces many boxes of cottages and townhouses. Why build new when you want to sell the old?


- You do not take account of the factor that a considerable part of the proposal for a long time did not find a buyer because it is non-format. There are a huge number of luxury homes in an absolutely not the elite field. They will not buy rich, and people with low income not even be able to afford to heat the house. On the other hand, there are townhouses with floor apartments of 200-300 square meters. But it's economy class product!

Aspect offers a little - only about 20 percent of cottage settlements. So many boxes, collected in the period 2006-2008, the price race, will long to wait for their customers.

Andriy Blinov, Catherine Sichenko

Expert
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