The weaker the hryvnia, the higher the cost of housing under construction

18.02.2010 11:57
Articles about real estate | The weaker the hryvnia, the higher the cost of housing under construction
It seems that the housing market a little agitated: a square meter in January, slightly risen in price, and in February, prices fell again. Moreover, and in the primary and secondary markets. What's next? Experts told the "BB", which is the spring real estate will rise in price again. At 1,0-15%. Why?

A square meter in the sights of politicians

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Those who wish to purchase an apartment impatiently unlikely to reduce prices, which was quite possible. After the current government has embarked on a number of anti-crisis program to save the industry: benefits provided to developers, the objects which were almost ready to surrender, offsetting the interest on loans to low-income families who refinanced financial institution, which gave loans to builders and consumers.

All went to what finally comes the long-awaited stability. However, in the case of change of power, many launched in the past year, programs may be frozen or, even worse, closed. So count yourself. According to the Union real estate professionals in Kiev in January, the average cost per square meter in the capital rose by 0,21%.

"We expect that the spring price in dollars will begin to grow and by the summer pick up 10-15%", - said the "BB" president of the Union of Real Estate Specialists of Ukraine Alexander Rubanov. However, in his view, the fall of prices may fall again.

We can buy a "candy wrappers"

"BB" has written that a sharp (20-30%) increase in wages and pensions, as advocated by the regionals, can lead to rapid increases in inflation. "To fulfill the pledges we will have to print several tens of billions of hryvnia, - explained the" BB "financial analyst Alexei Luponosov. --

Such a mass of cash in the commodity market will immediately lead to higher prices for food and medicine, then there will be collapse of the hryvnia exchange rate. Experts believe that inflation will be at least 25%. Accordingly, the dollar will react immediately. It is possible that he will grow up to 10 UAH. above.

It is clear that inflation would increase the cost of apartments in UAH: for the entire housing market is tightly tied to the "green". But we have something you do not get paid in U.S. currency, so the wallets of ordinary Ukrainians dramatically slimmer. "The devaluation will eventually lead to a significant increase in the cost of housing in UAH and some reduction in prices in dollars to compensate for the drop in demand", - says Alexander Rubanov.

Imported building materials becoming more expensive in the eyes

"The weaker the hryvnia, the higher the cost of housing under construction: it is at 40-70% consists of foreign parts, the dollar", - the head of department of strategic consulting "Ukrainian Trade Guild" Victor Oborsky. - And on the crisis all construction companies to the maximum shifted to a Ukrainian manufacturer of products to reduce their costs. So, what could have been saved, had long been taken into account and other reserves not.

If the new apartments to rise because of the components and materials, old - because of the devaluation of the hryvnia. "House prices in the secondary market in the capital will never be lower than in 2006, ie $ 1500 / m, - said the" explosive "head of the Department of Information Technology Association of Realtors of Ukraine Andriy Guselnikov. Thus, the price of real estate in the U.S. has almost reached the minimum level and go up, and in UAH increase.

Anyway, without apartments citizens are unlikely to rush to buy apartments. Rather, the stagnation and crisis in the housing market will grow. And with the advent of the regionals, many government anti-crisis measures taken last year to rescue the economy, may be lost in vain.
Content tags: Housing construction
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