For the three quarters of 2018, the volume of commissioned housing in Kiev amounted to 616 thousand square meters, or about 60% of the volume of January-September 2017, in the Kiev region-976 thousand square meters, which is 16% less than in the nine months of last year.
Despite the negative dynamics of the commissioned housing in the capital region, the construction market is growing, as evidenced by the volume of construction work performed in Ukraine, this figure increased in three quarters by 6.4% compared to the same period last year.
Kiev is the leader among the regions in terms of the volume of construction works performed. In January-October, the enterprises of the capital carried out works worth more than 22.7 billion UAH., but it is still almost 4% less than the same period last year.
According to the participants of the market of primary residential real estate "Business capital", the market of new buildings is quite active. The growth of demand for housing is promoted by loyalty programs and financial instruments - installments from the Builder, partnership programs of mortgage lending with banks. The greatest demand is for apartments from $ 30-100 thousand, 80% of the capital's developers work in this price segment. Although over the past year and a half the number of transactions to $ 50 thousand has increased significantly. At the same time, the cost of housing has increased - by an average of 20%, and depending on the class ranges from 18 thousand UAH. up to 56 thousand. UAH. per square meter.
"In 2018, the myth that apartments will be cheaper is finally destroyed," said Andrey Zeleny, co-founder of The lovely apartments residential complex. They're expensive. Buyers of real estate are not brought joy, and not only because it has become more expensive, but also because better and better, unfortunately, did not." The increase in the cost per square meter was influenced, first of all, by the rise in the price of building materials and construction works (on average 20-25%, which gave an increase to the price of a square to 10%), inflation jumps (about 10% to the cost of 1 sq.m.), the overall slowdown in the rate of development in the capital, the increase in real wages and the fiscal burden. Another trend of the year - increased competition between developers. "The capital's developers are trying to regain a buyer who massively turned his views and money on new buildings in the Kiev region, where, according to the state statistics service, the third consecutive year the volume of construction is a third higher than in Kiev," - said Andrey Green. The expert adds that in the course there is a reduction in prices, although the developers are falling already low quality and increasing density of development, as well as the use of administrative resources and the "force of law" - for example, the ban on the construction of buildings above two floors in the suburbs. "That it obviously didn't specify unfair competition, new laws, and DBN presenting as directed on bringing order in the construction market and which bring our standards into compliance with the European legislation ", - he considers.
Ruslana Grabko, sales and Marketing Director of the Royal House group of companies, singled out complex construction, an increase in the number of residential complexes of comfort and business class among the main trends of the year, which led to a General market price increase per square meter. "These trends will be relevant next year," she said.
At the same time, the concept of "city in the city" is discordant with another common trend, says Andrei Green: when in the existing architectural environment, between Khrushchev, literally shoved 26-story residential building.
Another trend is the growing popularity of management companies ' services. "Now the price has been replaced by value. It is caused by the fact that the modern buyer appreciates the time and is ready to pay for additional comfort and services", - Ruslana Grabko notes.
Next year, the main directions of the market will be largely similar to the trends of 2018. According to the forecasts of market participants, prices will continue to rise by 5-15% in UAH equivalent, provided a stable socio-economic situation in the country.
"Experts, a few years in a row predicts the collapse of the real estate market, falling prices, and collapse due to overproduction of housing, I give a big Hello from the real sector, where again, as before 2008, at the stage of the pit sold from 50 to 90% of apartments,"-says Andrey Green. The industry is still developing thanks to the internal reserves of companies and private investors-buyers. If the situation in the economy and with lending remains unchanged, the market will continue to show small growth in the capital and the suburbs, as well as in regional centers, where there are large industrial enterprises. In connection with the introduction of new DBN on the number of floors, depending on the population density and the requirements for the building area, the number of point buildings may decrease sharply, since the cost of construction in existing quarters may be unreasonably high. As a result, developers will focus more on the projects of the "city in the city" format. They will reduce the number of smart apartments but will offer more interesting terms of installments for full-size housing.
As for the introduction of martial law, the panic subsided in a few days, and the market began to work in new conditions. Since two-thirds of apartments are bought in houses under construction, the future of the market depends on the financial situation of the developer. As noted by Ivan Kudoyarov, real estate consultant, many companies supply cash without constant financial injections will last for two to three months of operational construction. Therefore, if the martial law will last more than six months and will limit the freedom of citizens, the regressive consumer demand and lack of working capital will be able to freeze up to a third of the objects under construction in six to eight months. If after 30 days it is not extended, the market will pass this period without any noticeable consequences.
Ukrainians are increasingly choosing buildings, despite a decline in the cost of secondary housing, said Igor Overko, Director of building group "Synegry".
According to the latest research in 2018, prices in the secondary real estate market continue to fall. So, over the past year, this figure has reached 4.8%. For example, the cost of an apartment in Khrushchev in Kiev with an area of 45 sq.m. in early 2018 exceeded 1 529 thousand UAH., today its cost is no more than 1 306 thousand UAH.
The decrease in the cost of secondary housing is due to serious competition in the real estate market of Ukraine, imposed by apartments in new buildings.
The growth of consumer demand for new buildings is explained by the following factors:
Availability-housing in new buildings is much cheaper than secondary apartments.
Price quotations - purchase of real estate is a good investment. At the stage of construction, it is possible to buy property much cheaper than after commissioning, the difference may be more than 75 thousand UAH.
Installment-developers offer installments without overpayments. For example, SG" synergy " provides installments up to two years without overpayments, with the first contribution of 30% in the national currency or in us dollars.
Ukrainians are increasingly choosing to buy housing in new buildings, despite the objective increase in prices from developers, due to the increase in the cost of construction.
One-room and two-room apartments are especially popular. One-room apartments are chosen for young couples who are just starting a family. It is also a good offer for parents. Separately, it is necessary to allocate investors who buy one-bedroom apartments for the purpose of renting and saving capital. So, the monthly passive income from leasing can make from 8 thousand to 11 thousand UAH. The payback period of such an investment is three to four years.
Most often, two-room options are chosen by young families and families with children. After all, for them, it is a great opportunity to get their own housing at a reasonable price. In addition, in new buildings it is possible to reschedule the apartment from one-bedroom to two-bedroom, according to construction standards, two-bedroom apartments have a total area from 50 to 70 sq. m. for Example, in LCD "synergy 3" apartment with total area of 51 sqm is about 520 thousand UAH, in the residential Green Side - about 598 thousand. Similar options for repair in the secondary housing market of Kiev and Kiev region are more than 1 529 thousand. UAH. and this is at the same distance to the subway branches.
All these factors have had a positive impact on the growth of the popularity of new buildings, for which the market is growing dynamically from year to year.
The capital's real estate market has also undergone significant changes and shifts. In this context, the special popularity began to use the suburb of Kiev, which are the main disadvantages of the metropolis. The most popular place to live in the resort town of Irpen, which is 10 minutes from Kiev. The reason for this popularity of Irpen was its unique ecology, a huge number of parks, forests and green areas, which are respected by developers, preserving and ennobling them. In addition, it is worth noting the developed infrastructure of the city: a sufficient number of gardens and schools, high-quality new roads, recreation areas, comfortable transport links.
The leaders of the construction market adhere to the standards in the construction of their facilities, as they believe that housing should rise to a new level.
Yard-Park. Yards in residential complexes are created as a comfortable environment for children and their parents, as well as a place where all residents of the district can gather and communicate. In such yards, there are a lot of green plantings, playgrounds, cozy squares and benches for walks. This is important for development and well-being.
Quarter building. Blocks of houses are formed lines of streets, which are easy to navigate. More importantly, neighborhoods are safer because of traffic restrictions.
High-rise buildings. The construction of houses with low floors allows the sun to penetrate into the courtyards and apartments, which is especially important for the well-being of residents. Tall same dominant houses provide architectural diversity.
Modern entrances are designed for easy entry of mothers with strollers or small children and for cyclists. Entrance to the entrance through-on the one hand you can drive up to it to unload purchases, and on the other - go out into the yard without cars. So children and mothers with strollers can go for a walk, bypassing the roadway.
Panoramic Windows, thanks to which the street is clearly visible from anywhere in the room, and in the apartment - more light and air. All the space this takes on a new scale.
Kindergartens and playgrounds. For children of any age and their parents, modern playgrounds and sports grounds for games and development are created.
In the development of Irpen a significant role was played by the construction group "synergy", which built housing for thousands of young families. These are more than 27 houses put into operation and 18 new properties under construction. Residential complexes from SG "synergy" are in high demand in the real estate market of the Kiev region. The company was the first in the market to implement the above standards in the design and construction of its complexes.
Such high trust on the part of the consumer in the market is the result of eight years of brand image as a reliable and responsible development of the Kiev region.
Thanks to this approach to its work this year SG "synergy" won the all-Ukrainian national award IBuild, which is annually held by the Confederation of builders of Ukraine (kbu), as "the Best regional construction company 2018", as well as the annual award "Ukrainian construction Olympus "in 2018 in the nomination" leader of the housing market in the Kiev region "for the dynamic development and successful construction of modern affordable housing and social infrastructure facilities in the near suburbs of the capital. In addition, the green Side residential complex became one of the winners of the Realt Golden Key 2018 national award as a residential complex with the best price-quality ratio in the Kiev region.
Director of sales DIM group Paul Torn said: "We aim to build a comfortable and beautiful residential complex."The economic and political situation in Ukraine in 2018 was relatively stable. This had a positive impact on the activity of investors and, accordingly, on sales volumes.
In 2018, the real estate market has transformed. Through the rapid increase in supply in the market with limited demand, many developers have laid in projects something new, innovative, to attract the attention and interest of investors. Today, the investor is interested not only in the square meters of apartments, but also additional advantages, such as: lifestyle, which is due to the concept of a residential complex; elegant entrance groups; panoramic Windows made of high quality materials, thanks to which the apartment becomes lighter and more comfortable; Autonomous boilers on the roof of the house; charging stations for electric vehicles. In addition, the architecture of houses has changed. A striking example of this is the residential complexes of the DIM group, which features unique modern architecture.
It should be noted that if earlier the investor paid attention only to the minimum cost, then today due to the fact that developers make additional options in the project, the emphasis when choosing to the house has shifted to the plane of quality. Better quality housing is presented in business class, but the main segment of buyers can afford to buy an apartment in comfort class, the quality is only slightly inferior to business. Therefore, the bulk of transactions falls on the comfort class-such a Golden mean and the right ratio of price and quality.
If we talk about the cost per square meter, in some classes it has changed significantly. Since the investor has become more demanding, preferring better housing and thoughtful concepts, the cost per square meter in the comfort class has increased due to increased demand. In the business segment, the cost per square meter has not changed. Only in some exclusive projects, the cost per square meter increased due to the lack of analogs in the real estate market of the capital.
New year's eve promotions, which are traditionally rich in December, allow you to buy a house at the best price. And taking into account not very attractive interest rates on deposits, investments in housing become the most effective investment.
Next year, the development holding DIM group plans to start implementing a number of interesting projects. We seek to build comfortable and beautiful complexes for life, creating full-fledged residential quarters with own infrastructure, parks, and a landscape zone, with "yards without cars" that people wanted to live here.
About the results of 2018 in the construction of residential real estate: what forecasts have come true, what trends have appeared or strengthened, how the political and economic situation in the country affected the market, what mood buyers told Oleg Mayboroda, General Director of "UKRBUD development". Looking back at the past year, we can identify one key trend that determines the development of the residential real estate market today and will determine it in the future. This trend applies to the pricing policy and format of housing, and competition-all that forms the current form of housing construction. This is the attraction of the main developers to the creation of not just houses, but comfortable living space.
Another important factor is energy efficiency and innovation, which will save on utility bills. The market, at least the capital, today is very small, and its main players are struggling for the attention of the client. And the only true tool in this struggle is the improvement of the product that they create.
The modern house of its very concept is radically different from what was built just 5-10 years ago. Today it is not just walls and roof. This is the internal infrastructure, comfortable HOMESTEAD space, architecture, security, maintenance, energy efficiency, modern technology and much more. This is the way of life in the new house. Therefore, those developers who want to develop, trying to remain competitive in the price per square meter, to offer the customer more than competitors. As a result, not only buyers of housing, who have a wide and as accessible as a possible offer, but also Ukrainian cities, in which a fundamentally new, modern and comfortable living and public space is formed benefit.
However, all sorts of experts once the question is raised - and whether all this new beautiful housing is in demand by the client? Or maybe limited in difficult times, the level of demand in the market to match the supply? Potential bubble scares us for years, but life puts everything in its place. New houses continue to be built and populated, Ukrainians continue to buy new housing, and one of the main economic sectors is rapidly developing.
Let me give you some figures. This year, apartments from the Corporation "UKRBUD" in Kiev bought 10% more than in the past. Sales of Parking spaces increased by 20%, non-residential premises-by 2.5 times. It is clear that we are talking about one of the leaders, and in others, the dynamics may not be so positive. But would developers take on new projects if they were not in demand? After all, most players have only one investor-Ukrainians who buy new housing and actively invest in it even at the earliest stages of construction.
In 2018, "UKRBUD" started four new projects in Kiev - residential complexes SOLAR CITY, LA MANCHE, SKY AVENUE, and GENESIS, and we see their high demand in its sales dynamics. In the near future, we plan to start the construction of another-Art House in Goloseevsky district. Most of the projects belong to the comfort class. Demand determines supply, and the available segments and average areas of apartments are still the most popular. But clients are becoming more demanding, so for all of these projects reflected the trend of the formation of comfortable living space, which fundamentally distinguishes the new building from the old. In addition, several business and premium projects are under development.
We plan to implement the concept of "yard without cars" in the new residential complex when all access roads and Parking areas are outside the yard space. All of them will have a comprehensive landscaping, unique architecture, internal infrastructure, security, underground Parking and, by default, the CLAP smart home system, which will help to save up to 40% on communal services and is an element of an integrated security system in all our projects. All according to nine standards of comfortable life from "UKRBUD".
Without continuous improvement, there will be no development. But there is a second important task of the market for the coming years - by all means to realize the enormous deferred demand that exists today. To get closer to the average European square footage per person, only in Kiev it is necessary to build about 60 million square meters of housing. This is something that will be created for many years, but people need today. And all the main players should aim to give the opportunity to buy new housing to all those who can't afford it yet.
Of course, the price per square meter depends not only on the developers. It has an acute impact on the socio-economic situation in the country. Not the last role is played by the exchange rate of foreign currencies, it affects the cost of many construction processes: the production of materials and components for payment and energy supply of the construction site. But even in times of uncertainty, people choose real estate as the most reliable investment. It's time-tested.
Of course, the key role should be played by the state, the welfare of citizens depends primarily on it. But we, in turn, improve installment programs, partner banks offer favorable credit conditions-in conjunction with the implementation of their obligations, all this will help to realize the deferred demand for housing.
However, it is the price per square meter will always be key. What it will be in 2019, now it is difficult to guess. This depends on a large number of factors. If at the beginning of this year prices grew slightly, in the second half already more actively. In General, the average price in Kiev last December 21.6 thousand UAH./sqm / year market finishes at the price of 23,4 thousand UAH./sq. m. and this growth is likely to continue at least at the same pace. At the same time, we strive to meet the needs of any client - prices in comfort-class houses from "UKRBUD" start from 16.5 thousand UAH./sq. m.
Therefore, one piece of advice has been relevant for a long time. If you want to buy a new home, the best time for this-December-January. It will not be cheaper, and this is the period of the most generous promotions and discounts. Moreover, buying a home is a great investment, which in terms of profitability cannot be compared with any Bank Deposit. As experience shows, housing in Ukrainian cities over time becomes only more expensive, besides its price in the secondary market is usually tied to the current dollar exchange rate. At the same time, primary housing reacts to the course not immediately, but with a noticeable interval, and developers always warn about the upcoming price increase in advance.
And if you buy a property on the eve or during the devaluation of the hryvnia, you quickly and without making any effort to increase its market capitalization. And if you invest in the object under construction at an early stage, when the developer offers a minimum price per meter, then for two or three years you will get to capitalization of 30-60%, depending on the object.
But since the construction-it is not the fastest, it is important to trust only such a developer, who even in difficult conditions will be able to finish the job. And for this, you should pay attention to those who have already passed through difficult times for the country. If the developer survived during the crisis of 2014-2015, when the hryvnia fell in price three times, completed its facilities, and investors who have invested to exchange rate jumps that are not overpaid - this is a good sign of the reliability of the company.
Built homes and happy owners are the best guarantees that your home is everything will be fine.
According to the materials of «Ділової столиці»