«Europe» stir the real estate market in Kiev

24.03.2009 00:00
Property News | «Europe» stir the real estate market in Kiev Apartments fell - a fact that today hardly be surprising. Proverbial real estate bubble, which inflated the past three years in mortgage yeast - has burst. Prices for apartments, which have sharply subsided in late 2008, continue to gradually decline. How will this decline, and how long it will last, nobody really knows - too many factors in Ukraine affect this market. But, nevertheless, the money people have and many do not mind them to invest in real estate cheapened. But today, most wealthy individuals expect a solid price floor. Nobody wants to buy now because they expect that tomorrow will be cheaper - a phenomenon called pent-up demand. Quite robust consumer behavior that is difficult to change something in a "frozen" market. Developers are struggling with these phenomena in different ways. Someone under construction projects provides the maximum possible, and even impossible discounts that makes us think, and whether to be completed such projects. Stronger developers are introducing various schemes of phased payments and installments, which is a reasonable alternative to a vanished mortgage. However, such programs, unfortunately, does not address the main causes of pent-up demand - the psychological, because people are unsure who buy real estate at a fair price.
Perhaps the most successful way of dealing with pent-up demand proposed development company "Europe", which is building a cottage complex "Olіmpіk Park" near Kiev. Since March of "Europe" is selling houses through the program "Protection of investments in real estate." This scheme simultaneously combines both an interest-free installments, and the ability to obtain discounts of up to 30% when buying houses.
According to the program after signing the purchase agreement cottage, a buyer for 10 months on the installment plan pays 70% of the cost of homeownership. During this time the company is building a cottage. After 10 months the remaining 30% of the buyer does not pay, because the final payment is reduced according to the change in prices that occurred in the market during this time. As a result, the final payment may be reduced by several times, or even not at all necessary.
Study changes in house prices in Ukraine is engaged in several independent companies. In DK "Europe" for objective monitoring of suburban real estate market research chosen by the international consulting company which is engaged in price indices in different segments of the real estate market around the world for over 110 years.

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"According to the Knight Frank index for country cottages both economy and business class in February compared to January, down by 6.71%. For our customers this means that home ownership, which is on February 1 was worth $ 250 thousand in March, is already $ 233 million with the payment of the final payment, this difference is taken into account, for which the company developed appropriate forms of the Treaties "- says commercial director of SC" Europe, "Vladimir Chuprynin.
In "Europe" believe that the unique selling scheme inevitably revive demand for houses, because allow buyers to acquire houses at a fair price.
As for prices to fall to the end of 2009, the company believes that the inherent 30% - this is the maximum reduction that is possible for the "Olympic Park". With a 30% discount price 1kv.m to the cost of land will be only $ 900, which is adequate and attractive price, even in conditions of market stagnation.
In conclusion, it should be noted that the confidence of the people that prices will fall and fall very much like the opposite sentiment prevailed in the market a year ago. The belief in "eternal growth" in property prices has ruined many companies and ruined the lives of millions of Ukrainians. Today we are seeing another extreme, panic, fueled by numerous publications and irresponsible statements by politicians, millions of people were led to believe that the property market will collapse in a few times. Many experts believe that the major drop in prices has already occurred. And when the next rise will not know anybody, especially since the huge deficit in almost all types of real estate in Ukraine has not been canceled.
Alexander Shmakov 
Content tags: Property real estate cottage
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