There are, of course, some other reasons for Ukrainian real estate market is cooling off and those are not that pleasant as the first one. The absence of clear, simple and affordable mortgages as well as constant scandals with developers who fail to finish constructions on time and according to the agreements significantly added to the current slow situation on real estate market.
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To cater to the most modest buyers, Kyiv developers decrease the total area of the apartments as much as it is possible. Small apartments in new complexes are being sold very fast, sometimes even before the construction works have even started. The percentage of small apartments (studios or one bedroom units) reaches up to 60% in the majority of the new complexes. This segment is developing very fast. There is also a new tendency to Kyiv of buying fully furnished apartments.
The number of offers on Kyiv real estate market exceeds the demand greatly. In April 2017, over 220 complexes offered 55000 apartments for sale in Kyiv. New developer projects are much bigger comparing to those of previous years. For instance, Zarichnyi residential complex on the left bank of Dnipro River is offering 1500 apartments; the new residential district which will be built on the territory of Kyiv Expo Plaza will have 7000 apartments.
From the beginning of 2017 the prices on Kyiv real estate market in budget and comfort segments didn’t change much. Experts say that situation will remain the same till the end of the year. Business- and luxury class apartments on the contrary became cheaper by 10 - 15 %. Experts also predict that there will be no major changes in capital’s real estate prices till the end of the year.
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Because of the low demand some developers and real estate companies are dumping the prices for the apartments and houses. These are mainly small companies that are very sensible to even minor changes in the economy climate of the country. However, lawyers and real estate advisors warn to be very cautious when buying from these companies. They often fail to meet the deadlines and all the terms of agreements.
Source: biz.liga.net; photo source: shutterstock.com