Last year, the mortgage market began to revive, but without significant changes, which it was expected. Particularly active clients, both corporate and individuals in the field of real estate purchase was not observed.
For a number of applications for loans on the market, of course, but not as significant as we would like. So, according to Ukrainian media, in 2010 in Ukraine the mortgage was less than 2% of all transactions in the residential market, while the overall number of contracts on purchase and sale of such real estate, too, showed a slight, but still lower (at 1.5 Thousands of transactions is less than in 2009).
The reason is quite simple: buyers did not show proof of income in demand, and banks failed to so reduce the interest rate on loans that they are available.
The only significant change in the market include increasingly moving banks on a floating interest rate.
Nevertheless, housing in Ukraine is not enough, and demand exceeds supply. Theoretically, the market is set to rise with increases in prices, as well as a large number of transactions. Post-crisis situation, characterized by high interest rates on loans, but they are the main driving force of the mortgage market. High prices on credit and not fallen to a satisfactory level of housing prices (according to the UNIA average price of 1 sq. m. In Kiev in 2010 decreased by 4,5% and on 1 January 2011 was on the secondary housing market an average of $ 2,076 -2410 per 1 sq. km. m depending on the number of rooms), do not give this market liberated, to begin to grow. Therefore, the whole of 2010 and beginning of 2011 we see at first gradual, then a sharp decrease in the value of mortgage loans. Credit market of banking services, has made significant strides to meet the revival of this market.
The same situation from the developers, builders, they also reduce prices, not very active, but the lack of strong demand forces to such measures.
In the short term - when the prices of mortgage loans will fall to an adequate level (13-14% per annum, a level that suits the buyer, the cost of square meters. Shelter, when the price level will dictate the demand), then begin an active buying, because people want to buy housing. Demand is there, just a demand set aside.
In 2011, we hope that process will begin and end with active purchase real estate and housing and commercial real estate.
In the longer term, Ukraine is waiting for the growth and number of transactions and house price growth as demand increases the supply - as soon as finances become available, price becomes available, people will start to buy again and it would raise prices.