The real estate market in Ukraine is under «a sense of crisis»

02.10.2008 00:00
The real estate market in Ukraine is in the process of "waiting for the crisis, told Interfax-Ukraine" CEO of real estate developer and construction company "Company" TMM "(Kiev), Vice-President of the Ukrainian Budivelna Association (UBA), Nikolai Tolmachev. "Today the Ukrainian real estate market situation, which can be characterized as a" crisis of expectation. " This is evidenced by the reduction in the overall primary and secondary markets, the number of transactions on sale of real estate: the final buyers took a wait and see position, "- he said.

According to N. Tolmachev, today is market correction. In the future, due to difficulties with funding for projects with a real estate market will go fine developers who have a portfolio of two or three projects, which obviously will reduce the effective supply in the market of primary residential real estate.

"Construction companies, implementation of projects that depend on attracting credit funds today have felt the decline in demand: many of them are forced to stop construction. Smaller companies just freeze, may in the future and not to resume work on the implementation of the object. In such circumstances probably decline in property prices by companies - as an attempt to raise funds for the implementation of the object, but guarantees the completion of the minor, "- says NA Tolmachev.

The expert notes that in this situation large construction companies will operate in a highly competitive market, where the main advantage will be quality and reliability of the company sold real estate.

"Stable position of large construction companies are not changed, especially for companies offering the full range of development and construction works - companies" closed loop "that can protect itself from external risks and manage the cost," - he adds.

According to N. Tolmachev, to the situation today in the construction market, influenced by several factors, in particular, a significant increase in mortgage interest rates - up to 20-25%, the political situation in the country, the investment burden on the construction companies to participate in the development of social and engineering-transport infrastructure, lack of objective complete information.

"In view of possible social consequences of structuring processes of the construction market, the government must take a clear position in support of the construction industry, particularly residential property, as is currently done in the U.S., Europe, the Baltics, Russia, Kazakhstan," - he believes.

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