Ukraine took last place in the world real estate ranking
Kyiv, November 05 (PolitNavigator, Vladimir Mikhailov) – Ukraine, as expected, took last place in the world GPG real estate ranking, reports a PolitNavigator correspondent.
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Ukraine is by far the leader in the fall in real estate prices - over the year, housing in Kyiv in dollars fell in price by 24%, and new buildings - by 28,5%. In Greece, which ranked second from bottom in the GPG ranking after Ukraine, prices fell by only 6,5%.
Last year, despite the stagnation in the economy, housing prices rose by almost 6%.
The real estate crisis has affected different regions to varying degrees. In Donbass, apartments have fallen in price significantly. Almost no transactions are registered, only speculators buy apartments in the ATO zone. In other regions, the average price drop was 40%. Prices for new buildings in satellite cities of Kyiv are more or less stable, and developers in these regions are trying to maintain sales levels by offering many programs, says Alexander Ruban, president of the Union of Real Estate Specialists of Ukraine. Odessa, according to him, also shows some vibrancy - now it is the only resort region in Ukraine.
According to realtor Andrei Yarema, if there is still some dynamics of sales in the economy segment, then everything that is more expensive has stopped.
It's not easy with commercial real estate either. According to the director of the Realtor House consulting center, Genrikh Lyudkevich, a quarter of the space in office centers in Kyiv is empty. The share of unclaimed space in centers commissioned this and last year is even higher. Prices for renting office space have fallen by half compared to last year. Shopping centers are in a slightly better position.
If previously the normal return period for investments in commercial real estate was 8-10 years, now 15 years is a good indicator, says Genrikh Lyudkevich.
The crisis in the market, as expected, led to a cessation of the influx of investments - no one wants to invest money in real estate, which is rapidly losing in price. No improvement can be expected, at least until the overall economic situation improves. “In general, the economy and incomes of the population are falling, so there is no revival in the market,” says Genrikh Lyudkevich.
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