Stagnation in the construction industry bankrupt builders, discourages investment and leaves the homeless Ukrainians. The first collapsed building materials market. Ukrainian weekly magazine reporter has sounded the alarm: the housing market is coming time of enormous change. The biggest companies claim for damages and frozen items. Investors have withdrawn from the domestic economy investment in other Eastern European countries. Shareholders of residential construction are preparing for litigation with not performing a plan for the house builders. Construction market on the verge of collapse.
Actual stop real estate development hit the adjacent markets. July 2008-the first in Ukraine has become a black month for most of them. Most went to producers of building materials, which are hoping for spring-summer excitement, increased deliveries of its products tripled. Has already started last month of summer, and their warehouses are full of unsold goods. Most of them you can not sell even half the product.
More recently, one of the locomotives of the economy - construction industry, which in the first half of last year grew by 11.8% during the first six months of this year for the first time since 90 years had collapsed by 3,9%, pulling down a growth rate of the whole economy.
The last stroke in the disappointing film was an address of the Association of producers of building materials to all government agencies and the President, which noted that the pace of industry growth during the first six months of 2008
fell to his seven-year low. Developers and manufacturers of building materials is already predicting the collapse of the economy, unless government takes urgent action on resuscitation industry before the end of the year.
Builders in one voice say that the main factor triggering a recession in the construction industry and the collapse of the building materials market has become tighter lending conditions by banks. If last fall to 80% of the apartments purchased with the assistance of credit money, now deal with the use of borrowed funds have stopped altogether.
Real estate market froze in anticipation of resolving the situation.
On what to expect from the domestic market and real estate and how developers and realtors see a way out of this situation, read the new issue of Ukrainian weekly magazine reporter on August 9, 2008.