UTG points out expansion of oligopoly among housing constructors in Kyiv
KYIV. Aug 3 (Interfax-Ukraine) – The expansion of housing construction volumes is resulting in gradual increase of oligopolistic competition on the Kyiv market, Deputy Head of the strategic consulting department of the Ukrainian Trade Guild (UTG, Kyiv) Kostiantum Oliynyk has said.
"Usually, several constructors, which develop large land parcels, work in a town. The same trend is seen in Kyiv, where around 80% [of housing construction] today is focused in the hands of only six constructors, and 50% - in the hands of two constructors: Kyivmiskbud and Ukrbud," he said at a press conference in Kyiv on Tuesday.
Oliynyk said that over restricted supply of land parcels for housing construction in Kyiv companies develop partnership schemes with land parcel owners or use parcels initially not intended for housing construction. They also shift their interest towards nearest suburbs.
"Over 2 million square meters of housing were commissioned in Kyiv region in 2016, and 83% of it is accumulated in the districts closest to Kyiv – Kyiv-Sviatoshynsky, Vyshgorod, Brovary and Boryspil. The four districts have 1.7 million square meters built and all the rest of the districts – 21 – only 348,000 square meters, which is a small figure," he said.
He said that the arrival of Kyiv constructors to suburbs results in large-scale urbanization of the areas, as companies have to develop networks, trade, social and entertainment infrastructure.
Oliynyk said in the conditions of low buying power of the public construction companies have to offer smaller apartments to maintain high sales.