Current US dollar rate in Ukraine now may affect only property rents - experts
Kyiv, February 5 (Interfax-Ukraine) – A rise in real estate prices in Ukraine in connection with the reduction of the hryvnia to U.S. dollar exchange rate is not expected, and changes in the current exchange rate might affect only the cost of renting property.
This forecast was voiced by the leaders of the Blagovist and Park Lane real estate agencies, which are part of First Realty Group (all based in Kyiv), at a press conference at Interfax-Ukraine on Wednesday.
"We do not forecast any price fluctuations [when selling or buying property], except for those on the market of real estate rental, and in particular on the market of inexpensive rent, because it has a minimum percentage of trade and discount, at least in the economy and business segments," Blagovist Director General Iryna Lukhanina said.
The level of a possible increase in rent rates will match the level of the fall in the hryvnia to U.S. dollar exchange rate, she said.
Lukhanina stressed that today, as a rule, parties discuss the real estate prices when selling or buying property, taking into account the declared value of the object in U.S. dollars.
"Talking about real estate, [exchange rate] growth to UAH 8.20-8.70 per $1 is not significant enough to really influence the price of real estate," she said.
Park Lane CEO Halyna Melnykova added that the segment of the elite real estate market, which the agency specializes in, is less affected by the current U.S. dollar rate. Consequently, the increase in the cost of property sale and purchase transactions, as well as luxury real estate rents in Ukraine in connection with the reduction of the hryvnia to U.S. dollar exchange rate is also not expected, she said.