Crisis And Real Estate In Ukraine

In January – February 2009, many members of the construction market of Ukraine stated that the bottom of the crisis is over and that house price growth in Ukraine will start by summer. And because the street is already August and summer is coming to an end Let's analyze, whether justified expectations of the developers enhance the market. If you have read about Vadim Belyaev already – you may have come to the same conclusion. At the moment, we can project that a collapse in property prices in Ukraine stopped. Since May, the market is small activation of buyers, and even modest growth in property prices (by 0.5% – 1.5%). The reason for this was the abolition of the moratorium on the early repayment of deposits of citizens, stabilize hryvnia rate, a significant reduction in price of unit value square. m. However, further price increases are not followed, the market just 'fixed' prices.

What is in demand in the property market? In brief – economy class, cheap apartments, mostly in the secondary market. There are several reasons: * The lack of lending on a 3-and 4-bedroom apartments do not have enough money from customers; * Due to fears of devaluation of the hryvnia many are trying to transfer their savings from the hryvnia-dollar views in real estate (more reliable asset) * Due to rising cost of utilities increases significantly large operation (for example, a 3-room) apartment. And this leads to an increase in the number of families / people who want to buy economy housing to reduce monthly costs. Agree, a fall in prices really slowed down. However, the resumption of past activity in the market we do not see. Part of potential investors in real estate is waiting for promised devaluation of the hryvnia, after which the cost of apartments could still fall. Another part of the potential property buyers waiting for the resumption of mortgage lending, as equity will be enough, unless that, for an initial fee. On this the restoration of the property market has to speak early. If you rely on the experience of other countries (Poland, uk, USA), then a full market recovery could take anywhere from 1.5 to 3 – years. So that a bright future of the Ukrainian real estate is still ahead.