The demand for “a primary” not time to catch up with the ever-growing supply on the market.
High competition of developers in Kiev and the region may lead to dumping and to reduce the average level of prices for primary residential property on the basis of 2017. This opinion was expressed by General Director of consulting company NAI Ukraine, Vitaly Boyko.
“There is increasingly fierce competition among developers. I think part of the projects perceived problems with sales, and these problems will try to solve only the price, so some lower quality sites will be forced to dump. In General the average price, it may be affected because they are still on the market a lot. High-quality objects a small percentage,” – said Boyko.
According to him, the crisis conditions that reduce the price per square meter in the market do not exist, so objects with high demand from buyers, the cost of housing will not change.
As noted analyst at NAI Ukraine Maria Gurevich, in the first quarter and the first half of 2017 in Kiev continued the positive trend 2016 to increase the number of commissioned housing. So, in January-March 2017 in the capital was put in two times more living space than in January-March 2016, while in Kyiv region has kept pace as the previous year.
“The largest number of LCD was introduced in the Pechersk and Shevchenko districts of Kyiv. A large part of the proposal maintained facilities occupied housing business class… In the first half of 2017 opened sales in 20 new LCD on the secondary market, the proposal also increased slightly by 5%”, – commented M. Gurevich.
According to her, there are no data on the subsidence of demand for housing in Kyiv region in the first half of 2017, the dynamics of sales is on the same level as in 2016. The greatest demand still falls on the housing economy and comfort class, as well as for small apartments, and these objects still occupy a major share in the sales structure.
“In 2017, we expect further growth, further growth, but perhaps the demand will not keep pace with such a boom of proposals in connection with which the market will experience increasing competition and a sagging prices,” said analyst NAI Ukraine.
According to Gurevich at the end of the first half of 2017, most expensive areas of Kiev for housing remain Pechersk and Shevchenko. Average prices for the capital’s housing economy class account for $ 630 million./sq. m comfort class – $ 820./sq. m, business class – USD 1.1 thousand./sq. m premium class – $ 1.8 thousand./sq. m.
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