OFFICE FAILURE!!!What IS the position of Kiev on the volume of office real ESTATE market??? - News about real estate, Kiev, Kyiv region. Real Estate In Ukraine

OFFICE FAILURE!!!What IS the position of Kiev on the volume of office real ESTATE market??? - News about real estate, Kiev, Kyiv region. Real Estate In UkraineUnder forecasts of experts of the international consulting company DTZ, in the current year in the capital is expected to put into operation about...Under forecasts of experts of the international consulting company DTZ, in the current year in the capital is expected to put into operation about 175 thousand sq. m of commercial office space. That is, the volume of new space will be approximately the same as last year. This means that Kiev will continue to occupy one of the last places among European capitals in terms of office market — less than 0.5 sq. m per capita.And the situation on the capital's office market today is practically no different from the one that was in the last few years. As before, there is a significant excess (according to experts, in half-two times) of demand over supply. There is a particular shortage of quality space in class "A" and "b", which is demanded by foreign companies.Due to the limited supply is the size of rents in the capital, according to conservative estimates, will soon reach $80-85 per 1 sq. m. And apparently, this is not the limit...Why is this happening, because the profitability of the capital's business centres is 25-40% per annum, with a payback of three to five years less than in the Czech Republic or Poland? According to experts, despite the fact that among the projects being considered in the recent Metropolitan town planning Board, the projects office centers, construction of new office space had been stalled by a variety of reasons. And, tellingly, these reasons remain the same: a long preparation of project documentation, difficulties in the design of land acquisition, a complex procedure of obtaining the necessary approvals.Now to this was added further and the rapid appreciation of materials, of energy. As a result, already during the construction of business centers, investors are often faced with the fact that the initial calculations for the estimates differ significantly from actual financial costs, and this inevitably entails the constant postponement...In General, today Kiev is a clear example of how political instability, the lack of a clear and deliberate planning policy local authorities largely negate the prospects of even the most attractive in terms of attracting investments in the construction region of the country. Two years ago Metropolitan municipality promised investors to open a single window, where they could see the entire inventory of the city of development sites is shown to developers technical requirements, pre-project proposals the city authorities, and when necessary, get help in dealing with organizational and legal issues relating to the implementation of projects.Recently, the first Deputy of the Kiev mayor Anatoliy Holubchenko has once again stated that the long-awaited "window" 's about to earn.



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