Residential real estate in Crimea: the trend of construction and sales in 2009

26.02.2009 00:00
Articles about real estate | Residential real estate in Crimea: the trend of construction and sales in 2009 The first stage, is gaining momentum at the moment - the decline in sales volumes compared to the spring of 2008 sales by the end of the year has decreased by 30-40%, while the suburban cottage settlements in contrast to the apartment market has seen some individual sales.
The second stage is expected in the second quarter of 2009 - reduction of prices of country real estate developers, it is inevitable, moreover there is a great likelihood of a global collapse in prices and it can not but worry Realtors. The first signs of the beginning of this process are already present, but actively falling prices, we will observe only since April. Consumer demand has been steadily falling every week, the end result will be almost complete halt of sales in the country houses, especially in high-priced sector of wooden houses Half-timbered houses - in this market sector is expected global slowdown, moneybags will invest in more stable industries. Most developers will revive sales by dramatically reducing prices or sale of part of the "frozen" for the sale of suburban property, to compensate for their monthly losses. However, judging by the experience of many countries, particularly Russia, which experienced a similar crisis in 1998 - a sharp decline in prices did not decide, the elite suburban real estate market is experiencing very difficult times throughout 2009.
Crimea - a highly specialized region of Ukraine - a tasty morsel for the developers, here for many years, massively expensive Crimean land were bought, so the suburban real estate market a sharp decline in prices will affect primarily the projects, whose owners have sought to extract excessive profits, and in pursuit of not paying the proper time elaboration of the concept of a country house or cottage. As for the primary market apartments, he expects a global collapse in prices, which will be 50-70% lower compared with the cost of similar apartments in the secondary market flats.

Related article: Kharkiv expects sales growth of 10-15% of housing

The crisis in Crimea develops much more dynamic than in other regions of Ukraine, many of the signs of the coming crisis were evident in early 2008, but they closed their eyes, more interested in political performances in the nation. It is therefore likely that the achievement of a critical point of fracture should not be expected in the near future, but analysts are inclined to write articles "on demand" for money from the owners of construction companies that work on the suburban real estate market of Crimea may claim otherwise, but in real life is much sadder.
The third stage of the crisis will be a recession, then recovery of the market. Recession probably will be delayed at least until the end of 2009 ... How long will the recovery period as long as no one can say, but it is likely that in the next 2-3 years should not expect a full recovery suburban real estate market. Without a doubt, that now on a buying real estate wooden country house Half-timbered houses dominated by buyers who have cash, so we can not talk about resale property, most likely those customers buy suburban real estate for themselves. Significant shifts in the market of country towns may begin only after the presidential elections in Ukraine in 2010. By this time the market is to produce adequate financial offers that correspond to the real situation, this will lead to the mass of developers working on the principle of extraction of profits will go to the suburban real estate market of the Crimea.
It is safe to say that in dollar terms, prices will fall, and rise in hryvnia. Cheaper in dollar terms for all developers will be different, depending on the quality of the project. Most of the projects, inadequate, and their 60-70% in the Crimea will be frozen. Strong same liquid projects cottage towns will drop in dollar terms by 30-40%.
It is difficult to say what part of the projects on the suburban real estate market of the Crimea will be frozen in 2009. Projects with unreasonable valuable already ceased its development. Freeze threatens projects and the developers who have a large number of projects in different market segments and are therefore forced to resort to any tricks to sell the property. In mid-2008 was sold Crimean largest real estate development company "Crimean Riviera", the previous owners very well have felt the restructuring of the market and prospects for development. In the current square footage in the Crimean Riviera partially redeemed, however, most objects frozen. C
uschestvuet several key players in the suburban real estate market of the Crimea, a company of Green Space Development (construction of wooden houses Half-timbered houses) with its holiday villages "Bogdanovs problem" and the company Elite Home (Finnish log construction and square log house), probably they will also be very difficult to coming years. It is obvious that in the next few years to invest in the country real estate of Crimea is not profitable, the price will fall, companies will go bankrupt and the owners of square feet would lose. Stabilization of the market in the future pripodneset some surprises owners of construction companies, both in price range, and by customer demand, prices have already reached their ceiling and a long period of economic recession were to fall dramatically.
Content tags: Property Regions
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