There is ALWAYS a chance!!!...and at LOWER PRICES too... - news on real estate, Kiev, Kyiv region. Real Estate In Ukraine
By the fall of real estate prices in Ukraine will start to decrease. According to experts, in recent years, housing is so actively grew in value that it is the turn of price stabilization. The latter may also contribute to the reduction...The prices in the housing market have a chance to go downBy the fall of real estate prices in Ukraine will start to decrease. According to experts, in recent years, housing is so actively grew in value that it is the turn of price stabilization. The latter may also contribute to the reduction of demand on the Ukrainian real estate.Expectations and demandAndrew Onistrat вЂ“ one of the few who openly speaks about the factor market expectations of lower prices, and reinforced it as the press reports and real actions of market participants. The degree of its impact on the market banker evaluates approximately 40%. Two other circumstances, equally significant impact on the situation, he calls the sharp decline in lending, which will have an impact on the market for at least the next 6-12 months, and the decline in the money supply, previously podkreplenij demand in the market. And the fact that the market has left speculators, earlier formed a significant part of the overall demand in the market.In the company of the twenty-first Century even now existing note in Kiev a significant unmet demand for housing in all segments of real estate. Estimated Giorgi Tsagareishvili and his colleagues, in Kiev there is a deficit of $ 16.7 million sq m without regard to future migration, of which effective demand is approximately 8.4 million sq. m of living space."The greatest demand housing "business class" apartment with an average area of 100-150 square meters, located in the "quiet center" and apartments "economy class". The demand for this type of housing far exceeds the supply, which contributes to higher prices for such housing," explains the developer and adds that, in his opinion, the growth of the market in the coming years will depend on establishing order in the sphere of obtaining permits and designing clear, understandable and transparent rules of the game in the market. If all this is done вЂ“ the pace of construction could increase and reach the desired volume.Giorgi Tsagareishvili recognizes that increasing lending rates and the suspension of issuing loans to consumers may somewhat reduce the effective demand, primarily for housing "economy class". But now the gap between supply and demand is so great that it is unlikely to greatly affect the market, he said. In his view, this period is temporary, and by the autumn the situation on the financial market should stabilize.The prices tend to decreaseReal estate prices in the circumstances вЂ“ the main issue of concern to all market participants. Forecasts varied than ever, it is increasingly common to view a sharp decline in prices or even their collapse by 30-50%.According to Andrew Onstrate, the willingness of developers to reduce prices will depend on the volume of their external liabilities to banks. In fact, under the current market conditions in a short time builders will have to increase sales, which in turn will force them to resort to price review. And once you do the first, we will start the process of rampant cost reduction of the primary housing. "Today the situation remains very tense. I can't call it close to critical, but I think after 2-3 months may start lowering prices. The optimistic forecast is the decline would be similar processes in Western countries. That is, prices will be discounted by 15-20%. About the pessimistic forecast would not like to speak, however, I think in the worst case speech can go and about 50-percent drop," don't skimp on the figures the banker the banker.Alexander Alyabyev has seen that some developers cut prices and jointly with banks develop different mechanisms to reduce the mortgage loan for the consumer. Besides, he was not discounting the special state program carried out by the State mortgage institution and the State Fund of youth housing assistance, which is also an alternative to reduce prices. "If we talk about commercial sale, then all means are already involved. I think today it makes sense to speak about the so-called social housing, when the guarantor is the state or the enterprise (for its employees) and takes equity participation in the construction. I think in this case it is possible to reach agreement with the developer about the small Delta of his earnings, but the guaranteed repurchase a certain number of meters" - suggests the expert.Developers at a loss do not want to workGiorgi Tsagareishvili believes that developers are ready to meet the consumers, but no one will work at a loss. And while there is effective demand, the decline in housing prices is not justified and therefore unlikely. To lower prices, said the expert, you need to increase the supply of housing on the market, we have to build more. But this is hampered by the opacity of the land market and the difficulty of obtaining permits for the allocation of land and the necessary change of the target purpose of the land plot, as well as lack of cheap long-term sources of project financing, particularly foreign investment. "Foreign investors and developers are not able to fully activate its activity on the Ukrainian real estate market in the absence of transparent rules of the game. Their scares the complexity and timing of approvals of projects that can range from 1.5 to 3 years", - the expert explains.To look at the problem of the "Western" look and look for unusual for Ukraine on the path of market regulation suggests Andrew Onistrat. "In developed countries in this process interferes with the regulator, a financial institution created by the state for the maintenance of the real estate market. With sufficient funding, he buys, for example, unfulfilled obligations on the mortgage, effectively preventing, thus, the manifestation of the crisis. Unfortunately, such institutions in Ukraine there are no real preconditions for its emergence. However, say the U.S. or the UK, their impact on the market significantly.