In 2015 in Kiev the demand for capital real estate fell by 40%. This is the lowest figure since the beginning of 2000. What will happen to property prices in Kiev in the nearest future?
According to the capital's property market and to “ARPA Real Estate” company, in 2015 in Kiev it was sold only 8170 apartments. This is almost 40% less than the previous year (13990) and almost four times less than in 2013 (31490). The fall of the market was predictable: UAH devaluation, declining living standards and the almost complete absence of the mortgage greatly crippled the demand for real estate.
But the developers have built a lot (or finishing projects). The proposal in the primary real estate market has grown. According to CDS company, at the beginning of December 2015 in Kiev appeared 34 new projects with 15 500 apartments. This is 15% more compared to the same period in 2014. In addition to 34 new houses in the capital there are still unsold apartments in the 161 buildings.
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There are no customers on such a quantity of apartments in Kiev and sellers make special offers. For example, developers have traditionally exhibited the prices in the USD and then they began to recalculate prices at a reduced rate of 21-23 UAH per US dollar. Other companies such as Kyivmiskbud have reduced prices or offer significant discounts up to 30%. According to the CDS, while in March 2014 the average price per square meter of economy and business class apartments was UAH 20 540 and UAH 35 300, then in December 2015 it was on the rate of UAH 19 285 and UAH 35 220.
According to address.ua, the apartments of the secondary market fell from an average of $ 1633 to $ 1331 per square meter in 2015. But some sellers are willing to cut prices even more.
In the first half of 2016 the experts do not predict significant change in the situation on Kiev real estate market. The buyers will demand discounts. As a result, the developers will be forced to keep prices at the level of 2015, while prices in the secondary market may be even lower by 10%. The new surge in sales of new buildings is possible only in case of a sharp UAH devaluation. But economists believe that the national currency this year will not get much cheaper.