Kiev players can expect a change of investment and construction market





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07.09.2008 00:00
In Kiev, there is no real reason for the serious crisis the real estate market in general and the crisis of the housing market in particular. At the same time, there is reason to expect a change of market players. This opinion was expressed by Director of the Academy of Sciences of the Planet Obolon Alexey Kotenko during a roundtable on the development of housing construction market in Kiev.

"Are there any real reason for the collapse of the building market? I think not "- he said.

However, AA Kotenko noted that "there are real reasons for the failure of specific companies that have failed over the past two years to refocus its marketing and management, for those who made serious errors in financial calculations.

"For those companies that come up with the times and customer requirements, this situation does not threaten" - he said.

A. Kotenko also noted that one of the main causes of the crisis the real estate market is in the refusal of banks to lend to builders and buyers.

"Banks do not give loans to developers, not only because they have no money, but also because it just is not many builders are now able to provide a full and proper documentation for construction", - he said.

A. Kotenko confident that property prices in the long run will still grow but not at a pace as in 2005-2006, when growth was at 60% -70% per year.

"You can say that our market has become more or less civilized, and similar to the European, but, unfortunately, not at the expense of leveling the volume of construction and demand, but only by raising prices, which allows you to balance supply and demand", - said he said.
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