Price of primary housing in Kyiv in hryvnia in two months up by 6-12.5%, rise in demand and supply seen - experts
Kyiv, September 10 (Interfax-Ukraine) - The average cost of housing on the primary real estate market in Kyiv in the national currency in July-August 2014 due to the rise in the U.S. dollar exchange rate increased by 6.1-12.5%, to UAH 12,700-30,300 per square meter, while a range of price increases in certain objects within the two months of this year amounted to 7-55%.
Such data were unveiled by City Development Solution consulting company (CDS, Kyiv) at a press conference at Interfax-Ukraine in Kyiv.
"The current year in terms of the development of the real estate market can be positively assessed, because for the first eight months of this year the market was supplemented with 23 new residential projects, and this is a total of 6,500 new apartments," CDS Director Yaroslava Chapko said.
At the same time, she noted that in July-August 2014 the Kyiv residential real estate market recorded seven new projects with a total supply of 1,500 apartments, while in January-June 2014 there were 16 new projects with 5,000 apartments.
According to Chapko, such a significant increase in new supply on the real estate market in Kyiv is mainly due to the increasing profitability of developers from the sale of residential real estate on the background of the falling profitability of commercial space.
"Notably, in the beginning of the year new supply was primarily in the segment of economy and comfort class, i.e., low-cost housing, and from summer replenishment was seen in all segments of the market," Chapko said, adding that in September-October sales in a number of new residential projects in Kyiv will start.
According to CDS, in July-August 2014 the average cost of economy housing on the primary real estate market of the capital increased by 12.5%, to UAH 12,717 per square meter, comfort class housing - by 11.8%, to UAH 14,107, business class- by 6.1%, to UAH 18,038, and premium - by 10.9%, to UAH 30,308 per square meter.