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Experts told, what to expect from the price of the apartment

Эксперты рассказали, чего ждать от цен на квартирыExperts see several options for further developments.

The supply of housing in our country – one of the lowest in Europe, and housing in Ukraine is already rather outdated. For example, in the EU per capita is 40 sq. m of housing in Ukraine – a little less than 24 sq. m.

But in terms of construction, the country has already overtaken the European Union and 2.9 of new apartments per 1000 people in Ukraine – against 2.8 in Europe. But the houses are built, and apartments are people still not buying, analysts portal M2bomber.

“This is the reason for the chaos in the real estate sector”, – experts say.

Situation significantly affects prices in the market. So, from April until mid-summer the 2018 prices in Metropolitan new buildings gradually fell and then rose again. Since July, the median price of new apartments was 22 280 UAH/sq m, in September, the median reached the level of 24 000 sq m, and remains so to this day. M2 price in dollars also increased by the fall, but not too much ($864/sq. m now vs $ 833/m2 in July).

“However, construction companies and so the profit lost in selling a new home. According to estimates of the Ministry of regional development, construction cost of 1 m2 in Kiev – about 13 000 UAH. Let’s add other costs to developers, for example, the acquisition of land for the work of the sales Department, advertising and marketing, etc. the end result is that the construction of one m2 in Kiev is unlikely to cost the construction companies less 15 000 hryvnia. And if so, it turns out that in Darnytskyi region new apartments sell not much more expensive, and in the Desna – even cheaper cost,” – noted experts.

Experts see several options of further developments:

The freezing of construction projects. The decrease in profitability is a big blow to small and emerging construction companies, which are quite scarce “financial cushion”. Not getting expected revenue from the sale of apartments, these developers probably won’t be able to finish already constructing objects. And construction in the Ukrainian crisis, “the strongest will survive”.

A further reduction in the square footage of apartments. In new houses and so most of the apartments are one – bedroom. Many of them have an area of 25 m2, 23 m2, or even less. Perhaps the market will be more such malometrazhek.

Infrastructure collapse and “construction fraud”. Even today the buildings sold poorly, and to reduce the price of m2 is nowhere – developers continue to strive to make a profit, close to the planned one. And often her “beat off” in other ways. For example, saving on materials and infrastructure construction. That is, new houses appear, but schools, hospitals, institutions, etc. – no.

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