The real estate market in Ukraine is waiting for an investor in the budget-saving apartments
On what real estate Ukrainians change their real money
In brief: Trends in the Ukrainian real estate market, investment climate and investment opportunities in the Ukrainian housing market for foreign investors.The real estate market of Ukraine has no pulse, according to which in crisis is possible to check its status. But the trends are quite obvious and predictable: the way to the heart and wallet of Ukrainian buyer of real estate is through the budget-saving apartments.
With the advent of 2008 ukrainian construction tycoons thought, and gradually began to realize their major error and miscalculation. To their regret, they did not asked themselves the question “What will the ukrainians buy once mortgage will suddenly die?”. The big problem of ukrainian real estate market from the beginning of global financial crisis become large areas that can not afford ukrainians who are ready to buy a flat in the primary market. Economy class on 30-40 square meters valued up to 40-45 thousand dollars was a deficit, and buyers returned to the secondary real estate, while the developers were left with nothing. In this case, the degree of preparedness of homes did not cause the buyer confidence.
What happened to the suburban housing market after the crisis? Easy become a simple truth one thing: buyers with cash and financial capabilities for a long time will not look toward the cottage villages with identical houses on the naked field. Hundreds of hectares of such fields were purchased after the crisis, and will not receive the prospects for development of building the next 5-10 years. While the money already invested…
Customers with money ready to consider at least 15 options of suburban housing, till they elect a worthy one in the picturesque surroundings of nature and developed social infrastructure. It is clear that the number of proposals are ten times more than buyers for them.
The ukrainian real estate market, despite the absence of the mortgage option, is very attractive to customers with so-called pending demand. For this reason, it is worth considering the possibility of investment in construction projects at the stage of completeness 70% and higher. Flats with small area in decent city areas will always have a reasonable demand, but only after finishing to the stage 90-95% readiness (‘nearly complete’). But it is nearly impossible for domestic construction companies, most of them are defaulted on their debts. Some foreign investors, possibly, can use this unique situation to bang some bucks out of customers.
Ukrainian Globalist2010-06-19 14:32, Economics.
News on: real estate, real estate market, secondary real estate, social infrastructure, ukraine, USD