Housing commissioning in Kyiv in 2013 could be similar to last year, say experts
Kyiv, August 1 (Interfax-Ukraine) – Housing commissioning in Kyiv in 2013, taking into account the activity of constructors, could be some 1.3 million square meters, which is the same as in 2012, Head of Strategic Consulting Department at he Ukrainian Trade Guild (UTG, Kyiv) Viktor Oborsky, said at a press conference at Interfax-Ukraine in Kyiv on Wednesday.
"Speaking about supply, we have an interesting statistics: over the past several years we have seen a rise in the ratio between the primary market and the secondary market – now the ratio is 65% to 35%, while earlier it was the other way," he said.
The UTG said that the current trend formed thanks to attractive offers from constructors for payments in installments, and other offers are being retained this year on the primary market, while housing prices are stabilizing.
"Everyone understands that the price bottom has been passed… the future fall [in the prices] will depend on the situation," Oborsky said.
The UTG said that by the end of the first half of 2013 the average price on the secondary housing market in Kyiv was $2,094 per square meter.
Housing prices on the primary market in Kyiv in June 2013 was $1,332 per square meter for economy class, $2,151 per square meter for business class and $6,331 per square meter for elite class.
Oborsky also said that around 60% of deals on the primary market in Kyiv are signed thanks to private investments, the sources of which is the sale of old apartments by potential buyers and purchase of new apartments with additional payment, and 37-40% of deals are signed with payments in installments.
The UTG said that the interest of companies investing in the Kyiv housing market is growing.
The Ukrainian Trade Guild was founded in 2001. It specializes in providing comprehensive support for development projects. Over 12 years of work it has participated in opening some 97 real estate objects. Among them are the Ocean Plaza trade and entertainment center (Kyiv), Meganom (Simferopol, Crimea), French Boulevard (Kharkiv), and others.
The UTG is selecting tenants for 17 objects with a total leasable area of 772,000 square meters. The UTG in 2012 managed seven shopping centers in Ukraine with a total leasable area of 325,000 square meters.
The UTG is a member of the Association of Trade Centers of Ukraine and the International Council of Shopping Centers (ICSC), and is also a member of the Urban Land Institute (ULI).