Monday , December 10 2018
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In Kiev, the falling demand for real estate

В Киеве падает спрос на недвижимостьLast year the construction industry showed the worst results over the last five years.

So, in Kiev in 2017 were sold 2350 apartments in the primary market and 3210 in the secondary. At the same time in 2016 for the same period was signed 4515 and 4960 of sales contracts.

The reduction in the number of transactions primarily observed in new buildings, whose construction began in 2017, the year.

“Three years ago unsold after the commissioning of the apartments was about 10%, today it is about 30%,” says managing Director of ARPA Real Estate Michael Artyukhov.

He also notes that purchasing power in local currency has not changed, and in dollars decreased.

It is also noted that financial instruments for purchase of residential clients practically do not use. Loans to purchase real estate due to high mortgage rates (from 19% to 22%) and strict requirements to the borrowers take no more than 5% of home buyers.

In the study of City Development Solutions says that competition in the real estate market in Kiev is increasing. In the first 9 months in the capital, was sale in 268 sites, which is 25% higher compared to the same period in 2016.

The Director for economy DIM group Vitaliy Tymoshenko noted that in 2018 we can expect a slight increase in the cost per square meter in UAH equivalent — prices will adjust by the inflation rate. He also adds that even if the hryvnia exchange rate will fall sharply, real estate prices will rise with a delay.

“With low purchasing power, developers are unable to respond adequately to the exchange rate jumps, since a sharp, even fully justified, the price increase will lead to a decline in sales”, — said Tymoshenko.

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