Land in Gostomel overrated

09.09.2010 03:13
Articles about real estate | Land in Gostomel overrated Session Gostomel village council (the Kiev region.) Approved a new regulatory monetary value of land upon which the cost of rent of the residential areas has increased by six times. According to observers, the decision of MPs would reduce the number of both land speculators and investors who planned to build in the village of the residential or commercial property.

Although reassess the value of allotments local authorities are required every five to six years in Gostomel the last time it was done in 1999 Further, the previous standard-money valuation did not cover the whole territory of the village, covering an area of 1.565 hectares, only its central part. On the outskirts of the same act rates approved in the early 90-ies of the last century. Because of what the average rental price of land was only 19.22 USD / sq. m per year, which does not meet current market realities. "Over the past 11 years, the situation in the village has changed: new roads, was held gas, built many new facilities. As a result, the value of land, on which basis and calculated the rent has increased about six times. Accordingly, the average rental rate for the city now makes 120 UAH. square. meters per year "- explain the company representatives of the Kiev Universal-Agro, which developed the draft decision of the village council.

Adopted by the deputies of the document refers to the separation of settlement by 36 zones, each of which is running its own cost allotments. Naturally, the most expensive land is located in the central part of the township and near major highways and interchanges. The size of the rent will affect not only its price, but also the function, which involved special factors: the construction of a residential building - 1, commercial property (offices, shops, shopping centers, kiosks) - 2,5, for production plants - 1.2. As a result, the rental price of land for housing in the central part of the settlement now will be 110 USD / sq. m per year, and for wearing a commercial property in the approximate center of the area to investors would have to lay at least 200 USD / sq. m per year. "The increase in rental rates will affect not only new but also existing tenants, which will conclude additional agreements" - say in village council.

But the decision Gostomelsky authorities may deter developers. For in order to minimize their costs, most construction companies, first renting the land during construction of the object and only then, before the commissioning, redeem it by a simplified procedure. The current rise in rental rates will increase construction costs by 10-15%, that for many companies will be critical. Most likely, the developers who have already erected any objects in Gostomel, will try to pass the increased costs onto the shoulders of their clients. Especially since some of them being prescribed such a possibility in investdogovorah with buyers. But the construction companies which only considered the possibility of a settlement now will bypass his party.

However, in the decision of the authorities there are positive aspects: it will reduce the activity of middlemen, who take the bureaucrats, themselves, first renting land, and then pass it on to third parties for a substantial reward. As a rule, for these purposes registered entity that receives the right to lease the land, and later he changed the owner. Now middlemen to pay the rent on the new rates will be expensive.
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